Social Identity-based Corporate Credit, Compensation Strategy And Performance Relationship,

In China, entrepreneurial activities are becoming more and more common in new century, especially in service industry where many entrepreneurial corporations emerge. Account of intangibility, inseparability, heterogeneity and perishability, service corporations face people intensity and employee behavior uncertainty problem. In order to gain trust, support and help from job candidates, customers and other stakeholders to promote growth healthily, these corporations are putting an effort to establish good credibility relationship between employee and corporation through key HR strategy such as compensation system, especially under the so-called "credibility crisis" emerging in China today.Previous literatures on credibility mainly focused on its ethic and economic facet. From a new perspective of organizational behavior, the present paper combined the literatures of social identity theory, credibility theory, compensation strategy theory and entrepreneurial performance theory, and on the basis of which, a series of relative sub-studies were conducted on the construct, assessment mechanism, impact of compensation strategy, and its effect on entrepreneurial performance of the corporate credibility in service industry.The aim of study I is to develop the construct of employee credibility and corporate credibility in organizational contexts in Chinese culture. Firstly, we made a semi-structured interview with 52 employees who were different in gender, age, tenure, occupation, academic degrees from 27 enterprises in different areas and industries. Secondly, a content analysis was made on the interview data. Lastly, based on the literatures and interviews, corporate credibility questionnaire was developed and delivered to entrepreneurs and their employees in 53 entrepreneurial firms from service industry with various ownship, structure and in different stages. The 305 valid questionnaires returned. The exploratory and confirmatory factor analysis revealed that employee credibility had three dimensions: integrity, commitment competence, and accountability; while corporate credibility had three dimensions, namely stakeholder's perceived corporate integrity, corporate competence, corporate accountability. The credibility attributes of service entrepreneurial firms are related to the characteristics of entrepreneurship and service industry. Proactivity, risk-taking and innovation reflected on enterprising and updating of credibility, while people intensity and behavior uncertainty conducted dependence on interpersonal credibility which brings on frangibility and risk.In study II, the assessment mechanism of corporate credibility was investigated. Case study methodology was adopted to analyze critical incidents from 4 service entrepreneurial firms based on social identity theory. The results indicated that the assessment mechanism of corporate credibility is a psychological process of social...