Journal Search Engine
Search Advanced Search Adode Reader(link)
Download PDF Export Citaion korean bibliography PMC previewer
ISSN : 2233-4165(Print)
ISSN : 2233-5382(Online)
Journal of Industrial Distribution & Business Vol.9 No.7 pp.71-82
DOI : http://dx.doi.org/10.13106/ijidb.2018.vol9.no7.71.

The Interactive Effects of Motivation and Contingent Rewards on Employee Creativity

Soyeon Hwang**,Heajung Jung***
* This paper was modified and developed from the thesis of the first author.
** First Author, School of Business, Konkuk University, Korea.
*** Corresponding Author, Assistant professor, School of Business, Konkuk University, Korea. Tel: +82-2-450-3634, E-mail: heajung@konkuk.ac.kr
June 15, 2018. July 5, 2018. July 15, 2018.

Abstract

Purpose – This study examined the effects of intrinsic and extrinsic motivation on employee creativity. Past research has consistently shown that intrinsic motivation is positively related to creativity. Yet conflicting results have been reported about the relationship between extrinsic motivation and creativity. To explore the reason why extrinsic motivation can either help or hurt creativity, we examined the role of contingent rewards as a moderator and tested whether either tangible or intangible rewards contingent upon creative performance significantly impact the relationship between extrinsic motivation and creativity.
Research design, data, and methodology – Survey data was collected from employees working for diverse organizations in Korea through online research firm. Only employees who reported their job or organization provided opportunities to use their creativity were allowed to continue the survey. Out of 305 initial responses collected, those with too much missing data were deleted, which finally left 278 responses for statistical analyses. To examine the validity of the measurements, confirmatory factor analysis was first conducted. Next, to test the hypothesized relationships, multiple hierarchical regression analyses were conducted.
Results – As hypothesized, both intrinsic and extrinsic motivation had positive effects on creativity. It was shown that contingent rewards did not influence the positive relationship between intrinsic motivation and creativity, but did significantly moderate the relationship between extrinsic motivation and creativity in a way that tangible rewards strengthened the relationship while intangible rewards mitigated the same relationship.
Conclusions – This research enhances our understanding on the relationship between motivation type, rewards, and creativity. Intrinsically motivated employees showed a high level of creativity regardless of whether rewards were expected or not. In contrast, extrinsically motivated employees showed more or less creative behavior depending on whether they were expected to have tangible or intangible rewards. As extrinsic motivation is typically associated with tangible rewards such as pay, promotion, etc., tangible rewards were seen to be more effective in promoting creative performance from extrinsically motivated employees than intangible rewards. Our findings make a significant theoretical contribution to reconcile prior inconsistent findings. Furthermore, they provide useful insights for managers and organizations into developing effective strategies for facilitating employee creativity.

JEL Classifications: C12, C42, J20, M54.

조직구성원의 외재적, 내재적 동기와 창의성의 관계: 조건적 보상의 조절효과

황소연**,정혜정***

초록


    Figure

    Table

    Reference

    1. Aletraris, L. (2010). How satisfied are they and why? A study of job satisfaction, job rewards, gender and temporary agency workers in Australia. Human Relations, 63(8), 1129-1155.
    2. Amabile, T. M. (1988). A model of creativity and innovation in organizations. Research in Organizational Behavior, 10(1), 123-167.
    3. Amabile, T. M. (1997). Motivating creativity in organizations: On doing what you love and loving what you do. California Management Review, 40(1), 39-58.
    4. Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. Academy of Management Journal, 39(5), 1154-1184.
    5. Amabile, T. M., Hill, K. G., Hennessey, B. A., & Tighe, E. M. (1994). The Work Preference Inventory: assessing intrinsic and extrinsic motivational orientations. Journal of Personality and Social Psychology, 66(5), 950.
    6. Baer, M., & Frese, M. (2003). Innovation is not enough: Climates for initiative and psychological safety, process innovations, and firm performance. Journal of Organizational Behavior, 24(1), 45-68.
    7. Baer, M., Oldham, G. R., & Cummings, A. (2003). Rewarding creativity: when does it really matter?. The Leadership Quarterly, 14(4), 569-586.
    8. Bodla, M. A., & Naeem, B. (2014). Creativity as mediator for intrinsic motivation and sales performance. Creativity Research Journal, 26(4), 468-473.
    9. Byron, K., & Khazanchi, S. (2012). Rewards and creative performance: a meta-analytic test of theoretically derived hypotheses. Psychological Bulletin, 138(4), 809.
    10. Cameron, J., Banko, K. M., & Pierce, W. D. (2001). Pervasive negative effects of rewards on intrinsic motivation: The myth continues. The Behavior Analyst, 24(1), 1-44.
    11. Carver, C. S. (2001). Affect and the functional bases of behavior: On the dimensional structure of affective experience. Personality and Social Psychology Review, 5(4), 345-356.
    12. Cerasoli, C. P., Nicklin, J. M., & Ford, M. T. (2014). Intrinsic motivation and extrinsic incentives jointly predict performance: A 40-year meta-analysis. Psychological Bulletin, 140(4), 980.
    13. Cooper, R. B., & Jayatilaka, B. (2006). Group creativity: The effects of extrinsic, intrinsic, and obligation motivations. Creativity Research Journal, 18(2), 153-172.
    14. Deci, E. L., & Ryan, R. M. (1985). The general causality orientations scale: Self-determination in personality. Journal of Research in Personality, 19(2),109-134.
    15. Deci, E. L., & Ryan, R. M. (2000). The “what” and “why” of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227-268.
    16. Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627.
    17. Deci, E. L., Koestner, R., & Ryan, R. M. (2001). Extrinsic rewards and intrinsic motivation in education: Reconsidered once again. Review of Educational Research, 71(1), 1-27.
    18. Dewett, T. (2007). Linking intrinsic motivation, risk taking, and employee creativity in an R&D environment. R&D Management, 37(3), 197-208.
    19. Eisenberger, R., & Aselage, J. (2009). Incremental effects of reward on experienced performance pressure: Positive outcomes for intrinsic interest and creativity. Journal of Organizational Behavior, 30(1), 95-117.
    20. Eisenberg, J., & Thompson, W. F. (2011). The effects of competition on improvisers’ motivation, stress, and creative performance. Creativity Research Journal, 23(2), 129-136.
    21. Eisenberger, R., & Shanock, L. (2003). Rewards, intrinsic motivation, and creativity: A case study of conceptual and methodological isolation. Creativity Research Journal, 15(2-3), 121-130.
    22. Eisenberger, R., Haskins, F., & Gambleton, P. (1999). Promised reward and creativity: Effects of prior experience. Journal of Experimental Social Psychology, 35(3), 308-325.
    23. Fahey, R., Vasconcelos, A. C., & Ellis, D. (2007). The impact of rewards within communities of practice: a study of the SAP online global community. Knowledge Management Research & Practice, 5(3), 186-198.
    24. Frese, M., Teng, E., & Wijnen, C. J. (1999). Helping to improve suggestion systems: Predictors of making suggestions in companies. Journal of Organizational Behavior, 1139-1155.
    25. Gagné, M., & Deci, E. L. (2005). Self‐determination theory and work motivation. Journal of Organizational Behavior, 26(4), 331-362.
    26. George, J. M., & Zhou, J. (2002). Understanding when bad moods foster creativity and good ones don’t: The role of context and clarity of feelings. Journal of Applied Psychology, 87, 687–697.
    27. Gerhart, B., & Fang, M. (2014). Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects. Human Resource Management Review, 24(1), 41-52.
    28. Gong, Y., Cheung, S. Y., Wang, M., & Huang, J. C. (2012). Unfolding the proactive process for creativity: Integration of the employee proactivity, information exchange, and psychological safety perspectives. Journal of Management, 38(5), 1611-1633.
    29. Grant, A. M., & Berry, J. W. (2011). The necessity of others is the mother of invention: Intrinsic and prosocial motivations, perspective taking, and creativity. Academy of Management Journal, 54(1), 73-96.
    30. Guay, F., Vallerand, R. J., & Blanchard, C. (2000). On the assessment of situational intrinsic and extrinsic motivation: The Situational Motivation Scale (SIMS). Motivation and Emotion, 24(3), 175-213.
    31. Hendijani, R., Bischak, D. P., Arvai, J., & Dugar, S. (2016). Intrinsic motivation, external reward, and their effect on overall motivation and performance. Human Performance, 29(4), 251-274.
    32. Jadhav, V., Seetharaman, A., & Rai, S. (2017). Employee expectation to demonstrate innovative work behaviour in Asia. The Journal of Asian Finance, Economics and Business, 4(1), 67-78.
    33. Janssen, O., & Van Yperen, N. W. (2004). Employees' goal orientations, the quality of leader-member exchange, and the outcomes of job performance and job satisfaction. Academy of management journal, 47(3), 368-384.
    34. Jeffrey, S. A., & Adomdza, G. K. (2010). Incentive salience and improved performance. Human Performance, 24(1), 47-59.
    35. Kasof, J., Chen, C., Himsel, A., & Greenberger, E. (2007). Values and creativity. Creativity Research Journal, 19(2-3), 105-122.
    36. Koestner, R., Losier, G. F., Vallerand, R. J., & Carducci, D. (1996). Identified and introjected forms of political internalization: Extending self-determination theory. Journal of Personality and Social Psychology, 70(5), 1025.
    37. Latham, G. P., & Locke, E. A. (2007). New developments in and directions for goal-setting research. European Psychologist, 12(4), 290-300.
    38. Lopez‐Cabrales, A., Pérez‐Luño, A., & Cabrera, R. V. (2009). Knowledge as a mediator between HRM practices and innovative activity. Human Resource Management, 48(4), 485-503.
    39. Malik, M. A. R., Butt, A. N., & Choi, J. N. (2015). Rewards and employee creative performance: Moderating effects of creative self‐efficacy, reward importance, and locus of control. Journal of Organizational Behavior, 36(1), 59-74.
    40. Manolopoulos, D. (2006). What motivates R&D professionals? Evidence from decentralized laboratories in Greece. The International Journal of Human Resource Management, 17(4), 616-647.
    41. Montag, T., Maertz, C. P., & Baer, M. (2012). A critical analysis of the workplace creativity criterion space. Journal of Management, 38(4), 1362-1386.
    42. Mumford, M. D., & Gustafson, S. B. (1988). Creativity syndrome: Integration, application, and innovation. Psychological Bulletin, 103(1), 27.
    43. Oldham, G. R., & Cummings, A. (1996). Employee creativity: Personal and contextual factors at work. Academy of management journal, 39(3), 607-634.
    44. Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879.
    45. Pretty, G. H., & Seligman, C. (1984). Affect and the overjustification effect. Journal of Personality and Social Psychology, 46(6), 1241-1253.
    46. Putwain, D. W., & Symes, W. (2011). Teachers’ use of fear appeals in the Mathematics classroom: Worrying or motivating students?. British Journal of Educational Psychology, 81(3), 456-474.
    47. Ryan, R. M., & Deci, E. L. (2000). Intrinsic and extrinsic motivations: Classic definitions and new directions. Contemporary Educational Psychology, 25(1), 54-67.
    48. Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of Management Journal, 37(3), 580-607.
    49. Shalley, C. E., & Gilson, L. L. (2004). What leaders need to know: A review of social and contextual factors that can foster or hinder creativity. The Leadership Quarterly, 15(1), 33-53.
    50. Shalley, C. E., & Perry-Smith, J. E. (2001). Effects of social-psychological factors on creative performance: The role of informational and controlling expected evaluation and modeling experience. Organizational Behavior and Human Decision Processes, 84, 1–22.
    51. Tierney, P., & Farmer, S. M. (2004). The Pygmalion process and employee creativity. Journal of Management, 30(3), 413-432.
    52. Tierney, P., Farmer, S. M., & Graen, G. B. (1999). An examination of leadership and employee creativity: The relevance of traits and relationships. Personnel Psychology, 52(3), 591-620.
    53. Van Dyne, L., Jehn, K. A., & Cummings, A. (2002). Differential effects of strain on two forms of work performance: Individual employee sales and creativity. Journal of Organizational Behavior, 23(1), 57-74.
    54. Vroom, V. H. (1964). Work and motivation. Oxford, England: Wiley.
    55. West, M. A., & Farr, J. L. (1990). lnnovation and creativity at work: Psychological and Organizational Strategjes. NY: John Wiley & Sons, 265-267.
    56. Woodman, R. W., Sawyer, J. E., & Griffin, R. W. (1993). Toward a theory of organizational creativity. Academy of Management Review, 18(2), 293-321.
    57. Yang, H. C., Cho, H. Y., Kim, J. J., Eom, T. K., Kim, S. W., & Youn, M. K. (2015). Effects of individuals, leader relationships, and groups on innovative work behaviors. International Journal of Industrial Distribution & Business, 6(3), 19-25.
    58. Yang, H. C., Cho, H. Y., & Lee, W. D. (2015). Multi-dimensional emotional intelligence effects on intrinsic/extrinsic motivation and job satisfaction: Analysis using laborer perceived organizational support. The East Asian Journal of Business Management, 5(4), 13-18.
    59. Yoon, H. J., Sung, S. Y., Choi, J. N., Lee, K., & Kim, S. (2015). Tangible and intangible rewards and employee creativity: The mediating role of situational extrinsic motivation. Creativity Research Journal, 27(4), 383-393.
    60. Zhang, X., & Bartol, K. M. (2010). Linking empowering leadership and employee creativity: The influence of psychological empowerment, intrinsic motivation, and creative process engagement. Academy of Management Journal, 53(1), 107-128.
    61. Zhou, J. (2003). When the presence of creative coworkers is related to creativity: Role of supervisor close monitoring, developmental feedback, and creative personality. Journal of Applied Psychology, 88, 413–422.
    62. Zhou, J., & George, J. M. (2001). When job dissatisfaction leads to creativity: Encouraging the expression of voice. Academy of Management Journal, 44(4), 682-696.
    63. Zhu, Y. Q., Gardner, D. G., & Chen, H. G. (2018). Relationships between work team climate, individual motivation, and creativity. Journal of Management, 44(5), 2094-2115.