Do Incentive Systems Spur Work Motivation of Inventors in High Tech Firms ? A Group-Based Perspective
AbstractIn this paper, we explore with a model the potential tensions between the incentive system of groups of inventors and knowledge diversity in a high tech firm. We show that, when all groups are rewarded and able to interact freely with their peers, extrinsic and intrinsic motives are mutually self-reinforcing, leading to crowding in effects. As a result, the level of created knowledge increases in each group, reinforcing the diversity of the firm’s knowledge base. By contrast, competitive rewards and constrained autonomy are likely to produce motivating effects in a small number of groups, limiting knowledge creation to the firm’s core competencies. In this case, the firm can suffer from crowding out effects by the other groups, leading eventually to the extinction of creation in their fields and reduced diversity in the long run. The results are illustrated with empirical findings from a case study of a French high tech firm.
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Bibliographic InfoPaper provided by Groupe de REcherche en Droit, Économie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis in its series GREDEG Working Papers with number 2013-40.
Length: 34 pages
Date of creation: Oct 2013
Date of revision:
Publication status: Forthcoming in Journal of Evolutionary Economics
work motivation; groups of inventors; knowledge creation; knowledge diversity;
Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-02 (All new papers)
- NEP-CSE-2013-11-02 (Economics of Strategic Management)
- NEP-HRM-2013-11-02 (Human Capital & Human Resource Management)
- NEP-KNM-2013-11-02 (Knowledge Management & Knowledge Economy)
- NEP-NET-2013-11-02 (Network Economics)
- NEP-TID-2013-11-02 (Technology & Industrial Dynamics)
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