Game analysis on adoption of incentive strategies in embedded rural company cluster: Case study based on shangli firework industry

Abstract

This article studies the game process when township enterprises introduce incentive strategies in Shangli fireworks industry in Jiangxi Province, where social network is based on relationship between families, friends, neighbors and other relationship. Compared with peers in the cluster, if employees feel unfair about festival welfare, bonus, pay systems, they would quit. Therefore reputation is very important for companies, and sometimes companies have to follow incentive strategies of competitors to attract employees. In addition, cost is also an important factor for them to introduce incentive strategies. © 2011 Springer-Verlag Berlin Heidelberg.