Organizational learning and compensation strategies: Evidence from the Spanish chemical industry

Abstract

This study explores the role of compensation strategies in promoting organizational learning capability. By analyzing a sample of 111 Spanish firms from the chemical industry, we highlight how compensation strategies can be used to influence employees' commitment to learning and shape their understanding of the overall purpose of the organization. We also show that inappropriate strategies can lead to short-term efficiencies but damage longer-term learning. © 2005 Wiley Periodicals, Inc.