Section Sixassociated with the use of internal sources for managerial
recruitment. Extrapolating from this relationship, the
researchers reasoned that human resource planning would be
needed to ensure the availability and development of internal
sources of talent. Thus, they hypothesized that in high-
technology companies, human resource planning is associated
with company performance. In contrast, the entrepreneurial
literature suggests that there is insufficient time for such
planning, relative to other demands, and that planning is
inconsistent with the rapid rate of change and flexibility
required in entrepreneurial companies.^27
The researchers also examined compensation issues. The
high-technology literature argues that high-technology firms
should exercise salary leadership in order to attract talent.
Although the entrepreneurship literature recognizes these
benefits, it maintains that cash flow problems in entrepreneurial
firms typically preclude salary leadership practices. The high-
technology literature also argues that since its key employees,
scientists and engineers, adhere to norms of autonomy, an
autonomy-oriented work environment will be associated with
company performance. However, the entrepreneurial literature
argues that a control-oriented work environment is necessary
to focus employees’ efforts on short-term goals.^28