IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v24y2019i04ns1363919620500759.html
   My bibliography  Save this article

The Role Of Employee Incentives And Motivation On Organisational Innovativeness In Different Organisational Cultures

Author

Listed:
  • PAAVO RITALA

    (Strategy and Innovation, School of Business and Management, LUT University, Finland)

  • MIKA VANHALA

    (School of Business and Management, LUT University, Finland)

  • KATJA JÄRVELÄINEN

    (Head of Customer Success, Gapps, Finland)

Abstract

Organisational innovativeness is known to be affected by employee incentives and motivation, but the evidence is inconclusive regarding the organisational contexts and contingencies where this phenomenon takes place. To examine this issue, we adopt the Competing Value Framework of four types of organisational cultures, and hypothesise differences in the incentives–motivation–innovativeness relationships. Using an empirical study of 425 Finnish firms in technology industries, we found in general that intangible and tangible incentives facilitate both intrinsic and extrinsic motivation, but only intrinsic motivation leads to improved organisational innovativeness. Testing our model for subsamples that included clan, adhocracy, market, and hierarchy cultures, we found that results vary considerably between those. First, incentives have different implications to motivation under different organizational cultures. Further, intrinsic motivation leads to innovativeness under adhocracy, clan, and market culture, but not under hierarchy culture, and extrinsic motivation does not lead to innovativeness under any culture.

Suggested Citation

  • Paavo Ritala & Mika Vanhala & Katja Järveläinen, 2019. "The Role Of Employee Incentives And Motivation On Organisational Innovativeness In Different Organisational Cultures," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-32, December.
    • Handle: RePEc:wsi:ijimxx:v:24:y:2019:i:04:n:s1363919620500759
    DOI: 10.1142/S1363919620500759
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/abs/10.1142/S1363919620500759
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919620500759?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. D Minbaeva & T Pedersen & I Björkman & C F Fey & H J Park, 2003. "MNC knowledge transfer, subsidiary absorptive capacity, and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 586-599, November.
    2. MacKenzie, Scott B. & Podsakoff, Philip M., 2012. "Common Method Bias in Marketing: Causes, Mechanisms, and Procedural Remedies," Journal of Retailing, Elsevier, vol. 88(4), pages 542-555.
    3. Andrew H. Van de Ven, 1986. "Central Problems in the Management of Innovation," Management Science, INFORMS, vol. 32(5), pages 590-607, May.
    4. Kurt Matzler & Dagmar E. Abfalter & Todd A. Mooradian & Franz Bailom, 2013. "Corporate Culture As An Antecedent Of Successful Exploration And Exploitation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(05), pages 1-23.
    5. Miao, C. Fred & Evans, Kenneth R. & Shaoming, Zou, 2007. "The role of salesperson motivation in sales control systems -- Intrinsic and extrinsic motivation revisited," Journal of Business Research, Elsevier, vol. 60(5), pages 417-425, May.
    6. Marjorie A. Lyles & Charles R. Schwenk, 1992. "Top Management, Strategy And Organizational Knowledge Structures," Journal of Management Studies, Wiley Blackwell, vol. 29(2), pages 155-174, March.
    7. Raj Echambadi & Benjamin Campbell & Rajshree Agarwal, 2006. "Encouraging Best Practice in Quantitative Management Research: An Incomplete List of Opportunities," Journal of Management Studies, Wiley Blackwell, vol. 43(8), pages 1801-1820, December.
    8. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    9. Ignacio G. Vaccaro & Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2012. "Management Innovation and Leadership: The Moderating Role of Organizational Size," Journal of Management Studies, Wiley Blackwell, vol. 49(1), pages 28-51, January.
    10. Van de Ven, Andrew R., 1986. "Central Problems in the Management of Innovation," Agricultural Research Policy Seminar 139708, University of Minnesota Extension.
    11. George P. Huber & Danial J. Power, 1985. "Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 171-180, April.
    12. Robert E. Quinn & John Rohrbaugh, 1983. "A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis," Management Science, INFORMS, vol. 29(3), pages 363-377, March.
    13. Bagozzi, Richard P & Yi, Youjae, 1991. "Multitrait-Multimethod Matrices in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 426-439, March.
    14. Lau, Chong M. & Scully, Glennda & Lee, Alina, 2018. "The effects of organizational politics on employee motivations to participate in target setting and employee budgetary participation," Journal of Business Research, Elsevier, vol. 90(C), pages 247-259.
    15. Ryan, James Christopher & Berbegal-Mirabent, Jasmina, 2016. "Motivational recipes and research performance: A fuzzy set analysis of the motivational profile of high performing research scientists," Journal of Business Research, Elsevier, vol. 69(11), pages 5299-5304.
    16. DeVoe, Sanford E. & Iyengar, Sheena S., 2004. "Managers' theories of subordinates: A cross-cultural examination of manager perceptions of motivation and appraisal of performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 93(1), pages 47-61, January.
    17. Shujahat, Muhammad & Sousa, Maria José & Hussain, Saddam & Nawaz, Faisal & Wang, Minhong & Umer, Muhammad, 2019. "Translating the impact of knowledge management processes into knowledge-based innovation: The neglected and mediating role of knowledge-worker productivity," Journal of Business Research, Elsevier, vol. 94(C), pages 442-450.
    18. Fariborz Damanpour, 1996. "Organizational Complexity and Innovation: Developing and Testing Multiple Contingency Models," Management Science, INFORMS, vol. 42(5), pages 693-716, May.
    19. Kuvaas, Bård & Buch, Robert & Weibel, Antoinette & Dysvik, Anders & Nerstad, Christina G.L., 2017. "Do intrinsic and extrinsic motivation relate differently to employee outcomes?," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 244-258.
    20. Stephen Wood, 1996. "High Commitment Management and Payment Systems," Journal of Management Studies, Wiley Blackwell, vol. 33(1), pages 53-77, January.
    21. Judith Behrens & Holger Patzelt, 2018. "Incentives, Resources and Combinations of Innovation Radicalness and Innovation Speed," ULB Institutional Repository 2013/282983, ULB -- Universite Libre de Bruxelles.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John W. Boudreau, 2004. "50th Anniversary Article: Organizational Behavior, Strategy, Performance, and Design in Management Science," Management Science, INFORMS, vol. 50(11), pages 1463-1476, November.
    2. Pietro Evangelista & Aino Kianto & Henri Hussinki & Mika Vanhala & Anna-Maija Nisula, 2023. "Knowledge-Based Human Resource Management, Logistics Capability, and Organizational Performance in Small Finnish Logistics Service Providers," Logistics, MDPI, vol. 7(1), pages 1-21, February.
    3. Da Mota de Pina E Cunha, A.M., 1998. "Determinants of Product Innovation in Organizations : Practices and Performance in the Portugese Financial Sector," Other publications TiSEM e6e4e56e-b72a-4392-8d79-f, Tilburg University, School of Economics and Management.
    4. Williams, Christopher & Lee, Soo Hee, 2011. "Entrepreneurial contexts and knowledge coordination within the multinational corporation," Journal of World Business, Elsevier, vol. 46(2), pages 253-264, April.
    5. Shahbaz, Muhammad & Gao, Changyuan & Zhai, LiLi & Shahzad, Fakhar & Khan, Imran, 2021. "Environmental air pollution management system: Predicting user adoption behavior of big data analytics," Technology in Society, Elsevier, vol. 64(C).
    6. Bilal Bourkha & Adam Dewitte & Jeremy Tantely Ranjatoelina, 2015. "Organiser l'imitation d'un business model innovant : quatre propositions pour les entreprises," Working Papers hal-01202625, HAL.
    7. Marlenne G. Velazquez-Cazares & Anna M. Gil-Lafuente & Ernesto Leon-Castro & Fabio Blanco-Mesa, 2021. "Innovation capabilities measurement using fuzzy methodologies: a Colombian SMEs case," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 384-413, December.
    8. Dedy Dewanto Soeprapto, 2021. "Correlation between knowledge exchange & combination (KEC) and leader member exchange (LMX)," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 169-182, June.
    9. Rachel Bocquet & Sandra Dubouloz, 2020. "Firm Openness and Managerial Innovation: Rebalancing Deliberate Actions and Institutional Pressures," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 43-74.
    10. Sarooghi, Hessamoddin & Libaers, Dirk & Burkemper, Andrew, 2015. "Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors," Journal of Business Venturing, Elsevier, vol. 30(5), pages 714-731.
    11. Pascal Le Masson & Armand Hatchuel & Benoit Weil, 2016. "Innovation theory and the logic of generativity: from optimization to design, a new post-decisional paradigm in management science," Post-Print hal-01481881, HAL.
    12. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    13. Kamal Sakhdari & J. Henri Burgers, 2018. "The moderating role of entrepreneurial management in the relationship between absorptive capacity and corporate entrepreneurship: an attention-based view," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 927-950, December.
    14. Nguyen Manh Thang, "undated". "Product innovation and process innovation in the hotel industry in Vietnam," Review of Socio - Economic Perspectives 202189, Reviewsep.
    15. Lukas, Bryan A. & Hult, G. Tomas M. & Ferrell, O. C., 1996. "A Theoretical Perspective of the Antecedents and Consequences of Organizational Learning in Marketing Channels," Journal of Business Research, Elsevier, vol. 36(3), pages 233-244, July.
    16. Henri, Jean-Francois, 2006. "Management control systems and strategy: A resource-based perspective," Accounting, Organizations and Society, Elsevier, vol. 31(6), pages 529-558, August.
    17. Dedy Dewanto Soeprapto, 2021. "Determining the key success factors in the organization of BP Tapera," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 42-55, September.
    18. Dedy Dewanto, 2020. "The characteristic of Leader-member Exchange (LMX) relationship between leader and follower: A case in construction industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(6), pages 77-90, October.
    19. Shaohua “Carolyn” Mu & Devi R. Gnyawali & Donald E. Hatfield, 2007. "Foreign subsidiaries’ learning from local environments: An empirical test," Management International Review, Springer, vol. 47(1), pages 79-102, February.
    20. Ashish Varma & Kaushal Bhalotia & Karan Gambhir, 2020. "Innovating for competitive advantage: managerial risk-taking ability counterbalances management controls," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(2), pages 389-409, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:24:y:2019:i:04:n:s1363919620500759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.