Abstract: This paper develops a framework of incentive reward match to organizational life cycle from the viewpoint of competitive advantage. Different strategy, such as differentiation, overall cost leadership and focus, can create different competitive advantage in each stage of organizational life cycle. Implementing different types of incentive reward strategy to motive unique human resources to execute the corresponding strategy and then competitive advantage can be built. Three types of incentive reward strategy, human capital, output and position, are proposed respectively in each stage of organizational life cycle to attract, nurture, and retain distinctive manpower. It will create and sustain competitive advantage in the long run.
Keywords: Competitive advantage, generic strategies, organizational life cycle, inventive reward
