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https://doi.org/10.62836/emi.v4i4.481
Zhao, J., & Dan Wu. (2025). The Effect of Varied Incentive Durations on Business Environment, Leadership Compensation, and Organizational Innovation: A Comprehensive Analysis. Economics & Management Information, 1–6. https://doi.org/10.62836/emi.v4i4.481
Volume 4, Issue 4, August 2025
Copyright (c) 2025 Jiang Zhao, Dan Wu
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This work is licensed under a Creative Commons Attribution 4.0 International License.

The Effect of Varied Incentive Durations on Business Environment, Leadership Compensation, and Organizational Innovation: A Comprehensive Analysis

This analytical review examines the impact of varied incentives on the business environment, leadership compensation, and organizational innovation. This study focuses on the pivotal role of risk-taking in driving innovation and suggests that suitable long-term incentives, such as stock options, can effectively motivate executives to undertake innovative endeavors. The analysis highlights the criticality of adaptable leadership compensation mechanisms that synchronize with strategic objectives and demonstrate responsiveness to evolving market dynamics. Additionally, external factors like industry competitiveness and regulatory environment can influence the effectiveness of incentive contracts in promoting innovation. The findings underscore the need for a holistic approach in designing incentive programs that consider contextual factors and align with long-term organizational goals. By creating a conducive environment for innovation, a business environment can attract and retain top talent, leading to sustainable growth and success.

business environment leadership compensation organizational innovation

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Supporting Agencies

  1. Funding: We acknowledge the Special Project for Leading Talents in Philosophy and Social Sciences Planning of Zhejiang Province (No.25 "The Mechanism of Government Regulation Empowering Corporate Green Innovation Elements and Collaborative Pathways under the Perspective of Carbon Neutrality"), the foundation of the Research Project of Humanities and Social Sciences of the Ministry of Education (No.24YJAZH173), Zhejiang Provincial Education Science Planning Project (No.2025SCG137), and Intelligent Education Branch Project of Zhejiang Provincial Education Association (No. ZNJY2507).