welborne

Frontiers of Entrepreneurship Research
1997 Edition

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VALUING EMPLOYEES: A SUCCESS STRATEGY

FOR FAST GROWTH FIRMS AND FAST PACED INDIVIDUALS

Theresa M. Welbourne, Cornell University

Introduction
Population ecology, inertia, and firm performance
Protection motivation theory and individual performance
Summary of conceptual arguments
Research Methods

Study #1, Organizational Level Research
Employee Value
Pace or rate of growth
Control Variables
Dependent Variable
Data Analyses
Results
Figure 1: Interaction of valuing employees (measured from prospectus) and pace on change in stock price from 1993 to 1995
Figure 2: Interaction of valuing employees (measured from the survey) and pace on change in stock price
Study #2, Individual Level Performance
Employee Value
Pace
Control Variables
Dependent Variable
Analysis
Results
Figure 3: Interaction of pace and value on employee performance

Discussion
References
Table 1: means, standard deviation, correlations study#1
Table 2: regression analysis for study#1
Dependent variable = change in stock price (1993 to 1995)
Table 3: means, standard deviations, correlations study#2
Table 4: regression analysis, study#2
Dependent variable = employee performance scores

ABSTRACT

This research considers the effect of pace on employee and firm performance. Population ecology and protection motivation theory suggest that to achieve success in a fast paced environment, companies should create an environment where employees feel they are valued. The theories emphasize that both fast pace and value are needed for higher performance. In the first study, I find that firms placing high value on employees and growing at a faster pace achieve higher stock price growth. In the second study, I find that employees working at a faster pace and who feel valued are higher performers.

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