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What Makes Them Tick? Employee Motives and Firm Innovation

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  • Henry Sauermann
  • Wesley M. Cohen

Abstract

We examine the impact of individual-level motives upon innovative effort and performance in firms. Drawing from economics and social psychology, we develop a model of the impact of individuals' motives and incentives upon their innovative effort and performance. Using data on over 11,000 industrial scientists and engineers (SESTAT 2003), we find that individuals' motives have significant effects upon innovative effort and performance. These effects vary significantly, however, by the particular kind of motive (e.g., desire for intellectual challenge vs. pay). We also find that intrinsic and extrinsic motives affect innovative performance even when controlling for effort, suggesting that motives affect not only the level of individual effort, but also its quality. Overall, intrinsic motives, particularly the desire for intellectual challenge, appear to benefit innovation more than extrinsic motives such as pay.

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  • Henry Sauermann & Wesley M. Cohen, 2008. "What Makes Them Tick? Employee Motives and Firm Innovation," NBER Working Papers 14443, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:14443
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    Cited by:

    1. Jonathan T. Kolstad, 2013. "Information and Quality when Motivation is Intrinsic: Evidence from Surgeon Report Cards," NBER Working Papers 18804, National Bureau of Economic Research, Inc.
    2. 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.
    3. Rinor KURTESH, 2018. "A Systematic Review Of The Internal And External Barriers To Public Sector Innovation In Kosovo," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(3), pages 12-23, September.
    4. Florian Ederer & Gustavo Manso, 2013. "Is Pay for Performance Detrimental to Innovation?," Management Science, INFORMS, vol. 59(7), pages 1496-1513, July.
    5. Burhop, Carsten & Lübbers, Thorsten, 2010. "Incentives and innovation? R&D management in Germany's chemical and electrical engineering industries around 1900," Explorations in Economic History, Elsevier, vol. 47(1), pages 100-111, January.
    6. Claire Bonnard, 2011. "Les incitations à l'innovation dans le secteur privé," Post-Print halshs-00599700, HAL.
    7. KURODA Sachiko & YAMAMOTO Isamu, 2009. "How are Hours Worked and Wages Affected by Labor Regulations?: The white-collar exemption and 'name-only managers' in Japan," Discussion papers 09031, Research Institute of Economy, Trade and Industry (RIETI).
    8. John P. WALSH & NAGAOKA Sadao, 2009. "Who Invents?: Evidence from the Japan-U.S. inventor survey," Discussion papers 09034, Research Institute of Economy, Trade and Industry (RIETI).
    9. Roach, Michael & Sauermann, Henry, 2010. "A taste for science? PhD scientists' academic orientation and self-selection into research careers in industry," Research Policy, Elsevier, vol. 39(3), pages 422-434, April.
    10. Mohamed Zennouche & Jian Zhang & Bo Wen Wang, 2014. "Factors influencing innovation at individual, group and organisational levels: a content analysis," International Journal of Information Systems and Change Management, Inderscience Enterprises Ltd, vol. 7(1), pages 23-42.
    11. André Spithoven & Peter Teirlinck, 2010. "External R&D: Exploring The Functions And Qualifications Of R&D Personnel," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 967-987.
    12. Jonathan T. Kolstad, 2013. "Information and Quality When Motivation Is Intrinsic: Evidence from Surgeon Report Cards," American Economic Review, American Economic Association, vol. 103(7), pages 2875-2910, December.
    13. Nick Manning & Zahid Hasnain & Jan Henryk Pierskalla, 2012. "Public Sector Human Resource Practices to Drive Performance," World Bank Publications - Reports 25489, The World Bank Group.
    14. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    15. Iwona Zdonek & Beata Hysa & Dariusz Zdonek, 2021. "Academic Staff in the Context of Known Theories of Motivation," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 906-935.
    16. Romero-Martínez, Ana M. & Montoro-Sánchez, Ángeles & Garavito-Hernández, Youseline, 2017. "O efeito da diversidade de gênero e o nível educacional na inovação," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 57(2), April.

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    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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