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Challenges in Contract Theory: Performance-Based Pay as a Solution to Address Promotion Risk in a Competitive Corporate Environment Ria Wulandari; Yuni Sara
International Journal of Business Law, Business Ethic, Business Comunication & Green Economics Vol. 2 No. 2 (2025): June: International Journal of Business Law, Business Ethic, Business Communica
Publisher : LPPM STIE Kasih Bangsa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70142/ijbge.v2i2.359

Abstract

This study examines the challenges in implementing contract theory, particularly related to corporate performance pay as a solution to promotion risk in a competitive environment. Performance-based pay serves to increase employee motivation and reduce uncertainty in promotion, but has the potential to create unhealthy competition and reduce teamwork. This study suggests that a balanced incentive contract design, which combines financial and non-financial rewards, can optimize individual performance without sacrificing team harmony. Although performance-based pay can provide short-term benefits, it is important for companies to consider its long-term impact on employee satisfaction and collaboration within the organization. This study provides theoretical and practical insights for companies in designing fair and effective promotion systems
Decentralized Capital, Centralized Growth? A Qualitative Synthesis on the Role of Venture Capital in Reinforcing Innovation Hubs Mia Christy Patricia; Yuni Sara
International Journal of Business, Marketing, Economics & Leadership (IJBMEL) Vol. 2 No. 1 (2025): February: International Journal of Business, Marketing, Economics & Leadership
Publisher : LPPM STIE Kasih Bangsa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70142/ijbmel.v2i1.384

Abstract

This qualitative literature review explores the paradox of decentralized capital contributing to the continued centralization of innovation activity within established geographic hubs. Drawing on recent empirical studies, the review synthesizes findings on how venture capital (VC), though increasingly distributed across regions, remains concentrated in innovation ecosystems such as Silicon Valley, Boston, and New York. The analysis highlights factors including relational investing, agglomeration economies, and institutional embeddedness that reinforce this geographic concentration. While remote investing and public policy efforts aim to expand capital access, they often fall short of disrupting entrenched spatial dynamics. The findings underscore how venture capital acts not merely as a financial resource but as a structuring force that shapes the geography of innovation. The study contributes to understanding the limitations of capital diffusion in fostering regional entrepreneurial development and calls for more integrative policy interventions to balance growth.