【正文】 rvice firm’s efforts to enhance its petitive advantage. Since technologybased service firms profit from services delivered within an advanced technology context, they should emphasize an appropriate pay policy to recruit and motivate highly qualified people. Second, in terms of issues related to strategic pay policy perspectives, existing studies do not focus onservice sectors. Third, Taiwan was once one of the significant emerging markets in the world, but is now facing great challenges due to the emergence of China and intense petition in international markets. The technologybased service sector plays the important role of innovation initiator and knowledge mediator, leading to productivity growth for the entire industry. Building a petitive advantage through HRM practices in this sector is of vital interest to Taiwan’s economic development, and is thus an important issue for Taiwan’s HR professionals and researchers. This analysis includes several important controls to provide more convincing evidence for the research , the empirical aspect of this research exploits a technologybased service firm dataset constructed by the DirectorateGeneral of Budget, Accounting and Statistics (DGBAS), a cabilevel office in Taiwan. This large sample dataset provides a more plete and appropriate picture of the variables analyzed in this study. Consequently, the results of this investigation are an interesting examination of this field. In view of the importance of innovation in technologybased service firms, this study focuses on one specific but important aspect of business strategy: innovation strategy. This area is worthy of study because no researchers have investigated the effect which pay policy bined with innovation strategy has on firm study uses secondary data rather than the primary data derived from questionnaires in previous studies. This approach limits the effect caused by the qualitative or attitudinal propensities of respondents. Hence, this study examines the strategic pensation perspective more objectively. Previous studies do not regard industrytype as a variable in their frameworks even though different industries may have different labor conditions related to market situations and petition. This study provides a more prehensive investigation framework by incorporating the influence of different industries. The results of this study will interest HR professionals in general and Taiwan’s HR researchers and managers in particular. Framework and hypotheses Figure 1 displays the conceptual framework investigated in this study. The framework indicates that pay policy and innovation strategy bined affect the performance achieved in a technologybased service firm. The conceptual framework further proposes that the industry type moderates this relationship. Specific hypotheses concerning these relationships are detailed below, together with their underlying rationale. H1. Matching pay policy with innovation strategy is positively related to firm performance H2. The effect which pay level bined with innovation strategy has on firm performance is stronger in the IC design service industry than in software and system integration service industries. Research methods Variable definitions and measures Firm performance. Firms pursue different objectives, and there is probably no single measure that fully captures firm performance ( Venkatraman and Ramanujam, 1986).The ultimate success of a firm is not solely measured by its capacity to increase its sales, produce profits, or generate cash from its operations, but whether the firm’s activities are creating value for its owners (Fletcher and Smith, 2020). In addition, Ramp。 Tsai and Wang, 2020). Thus, in