Abstract
This study aimed to investigate the mechanism of pay dispersion and organizational performance. Eighty-five enterprises across three different industries including Information Technology (N = 34), Electronics Manufacturing (N = 26), and Medical and Health (N = 25) participated this study, and the data was then analyzed through a series of hierarchical linear regression. The effect of pay dispersion on organizational performance was examined while the variables of organizational size and ownership status were controlled. The results indicated that (1) the effect of pay dispersion on sales margins was moderated by pay levels, and (2) the industry of Medical and Health was a significant moderator towards the relation between pay dispersion and organizational performance.