Do Incentive Systems Spur Work Motivation of Inventors in High Tech Firms ? A Group-Based Perspective
In 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.
|Date of creation:||Oct 2013|
|Date of revision:|
|Publication status:||Forthcoming in Journal of Evolutionary Economics|
|Contact details of provider:|| Postal: |
Web page: http://www.gredeg.cnrs.fr
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- OWAN Hideo & NAGAOKA Sadao, 2011. "Intrinsic and Extrinsic Motivations of Inventors," Discussion papers 11022, Research Institute of Economy, Trade and Industry (RIETI).
- John R. Hauser, 1998. "Research, Development, and Engineering Metrics," Management Science, INFORMS, vol. 44(12-Part-1), pages 1670-1689, December.
- Bart Nooteboom, 2000. "Learning by Interaction: Absorptive Capacity, Cognitive Distance and Governance," Journal of Management and Governance, Springer, vol. 4(1), pages 69-92, March.
- Guido Friebel & Mariassunta Giannetti, 2002.
"Fighting for Talent: Risk-shifting, Corporate Volatility, and Organizational Change,"
CESifo Working Paper Series
793, CESifo Group Munich.
- Friebel, Guido & Giannetti, Mariassunta, 2002. "Fighting for Talent: Risk-Shifting, Corporate Volatility, and Organizational Change," CEPR Discussion Papers 3610, C.E.P.R. Discussion Papers.
- James Bessen & Eric Maskin, 2009.
"Sequential innovation, patents, and imitation,"
RAND Journal of Economics,
RAND Corporation, vol. 40(4), pages 611-635.
- Ulrich Witt, 2009.
"Emergence and Functionality of Organizational Routines An Individualistic Approach,"
Papers on Economics and Evolution
2009-24, Philipps University Marburg, Department of Geography.
- Witt, Ulrich, 2011. "Emergence and functionality of organizational routines: an individualistic approach," Journal of Institutional Economics, Cambridge University Press, vol. 7(02), pages 157-174, June.
- Nathalie Lazaric, 2011.
"Organizational routines and cognition: an introduction to empirical an analytical contributions,"
- Lazaric, Nathalie, 2011. "Organizational routines and cognition: an introduction to empirical and analytical contributions," Journal of Institutional Economics, Cambridge University Press, vol. 7(02), pages 147-156, June.
- Dupouet, Olivier & Yildizoglu, Murat, 2006.
"Organizational performance in hierarchies and communities of practice,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 61(4), pages 668-690, December.
- Olivier DUPOUËT (BETA UMR CNRS 7522) & Murat YILDIZOGLU (IFReDE-E3i), 2003. "Organizational performance in hierarchies and communities of practice," Cahiers du GRES (2002-2009) 2003-06, Groupement de Recherches Economiques et Sociales.
- Sidney G. Winter, 2012. "Capabilities: Their Origins and Ancestry," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1402-1406, December.
- Marengo, L, 1992. "Coordination and Organizational Learning in the Firm," Journal of Evolutionary Economics, Springer, vol. 2(4), pages 313-26, December.
- Guido Friebel & Mariassunta Giannetti, 2009. "Fighting for Talent: Risk-Taking, Corporate Volatility and Organisation Change," Economic Journal, Royal Economic Society, vol. 119(540), pages 1344-1373, October.
- Lanse Minkler, 2002.
"Shirking and Motivations in Firms: Survey Evidence on Worker Attitudes,"
2002-40, University of Connecticut, Department of Economics.
- Minkler, Lanse, 2004. "Shirking and motivations in firms: survey evidence on worker attitudes," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 863-884, June.
- Lanse Minkler, 2002. "Shirking and Motivation in Firms: Survey Evidence on Worker Attitudes," Working papers 2002-37, University of Connecticut, Department of Economics.
- Nathalie Lazaric & Alain Raybaut, 2007. "Knowledge, Hierarchy and incentives: Why human resource policy and trust matter," Post-Print hal-00453292, HAL.
- Henry Sauermann & Wesley M. Cohen, 2010. "What Makes Them Tick? Employee Motives and Firm Innovation," Management Science, INFORMS, vol. 56(12), pages 2134-2153, December.
- Anna Grandori, 2001. "Neither Hierarchy nor Identity: Knowledge-Governance Mechanisms and the Theory of the Firm," Journal of Management and Governance, Springer, vol. 5(3), pages 381-399, September.
- Nathalie Lazaric & Alain Raybaut, 2005. "Knowledge, hierarchy and the selection of routines: an interpretative model with group interactions," Journal of Evolutionary Economics, Springer, vol. 15(4), pages 393-421, October.
- Cécile Ayerbe & Nathalie Lazaric & Michel Callois & Mitkova Liliana, 2011. "Nouveaux enjeux d'organisation de la propriété intellectuelle dans les industries complexes: une discussion à partir du cas Thales," Working Papers hal-00599735, HAL.
When requesting a correction, please mention this item's handle: RePEc:gre:wpaper:2013-40. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patrice Bougette)
If references are entirely missing, you can add them using this form.