← Search

Performance‐based rewards and innovative behaviors

Karin Sanders1; Frances Jorgensen2; Helen Shipton3; Yvonne Van Rossenberg4; Rita Cunha5; Xiaobei Li6; Ricardo Rodrigues7; Sut I. Wong8; Anders Dysvik9

1 School of Management UNSW Business School Sydney Australia · 2 Faculty of Management Royal Roads University Vancouver Canada · 3 Nottingham Business School Nottingham Trent University Nottingham UK · 4 SHRM at the Institute for Management Research Nijmegen School of Management, Radboud University Nijmegen the Netherlands · 5 Nova School of Business and Economics Universidade Nova de Lisboa Lisbon Portugal · 6 Graduate School of China Sungkyunkwan University Seoul South Korea · 7 King's College London London UK · 8 Department of Communication and Culture BI Norwegian Business School Oslo Norway · 9 Department of Leadership and Organizational Behaviour BI Norwegian Business School Oslo Norway

Human Resource Management 2018

This study investigates the effects of two internal factors, performance‐based rewards and employee perceptions of human resource (HR) strength, and one external factor, country‐level uncertainty avoidance, on employee innovative behaviors. Drawing on situational strength theory, we first hypothesize performance‐based rewards will positively relate to innovative behaviors, and second, this relationship is stronger when employees understand the wider Human Resource Management (HRM) system as intended by management, referred to as HR strength. Finally, we assess the effect of uncertainty avoidance on the relationship between performance‐based rewards and innovative behaviors. Three‐level data from 1,598 employees and 186 managers in 29 organizations across 10 countries showed both employee perceptions of HR strength and uncertainty avoidance of a country that differentially influence the relationship between performance‐based rewards and innovative behaviors. However, a significant relationship between performance‐based rewards and innovative behaviors was not found. This study offers novel insights into how organizations can use internal factors in a systematic manner to promote innovative behaviors in their workplace, and highlights the limitations of sustaining innovative behaviors in countries characterized by high levels of uncertainty avoidance.

DOI
10.1002/hrm.21918
Volume
57 (6)
Pages
1455-1468
Language
en
Export
BibTeX
Sources
crossref