This study used the case study approach to perform a longitudinal analysis of the implementation of
skill-based pay plans in two different manufacturing plants in France within the same firm. The
employees in both plants utilized the same process technology to produce cardboard boxes and
packaging. Social regulation and bounded rationality theories were jointly used to explain the
variations in pay plan design between the two plants. The results provide a deeper understanding of the
implementation process and the variety of possible configurations of the design of skill-based pay.
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