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Enhancing Employees' Creativity: The Role of Rewards, Individual Differences and Organizational Climate

Track: Organizational Behavior & Theory

Keywords: Creativity, Rewards, Motivation, Personality, Climate

Previous studies on the rewards–creativity relationship have yielded mixed, inconclusive findings that support opposite theoretical positions. To address such inconsistencies, we propose that both intrinsic and extrinsic rewards predict creativity, but of different types. Thus, diverging from the view that creativity is a uniform criterion domain, we adopt the distinction between radical and incremental creativity. We then propose that intrinsic and extrinsic rewards predict radical and incremental creativity, respectively, and such relationships are moderated by learning goal orientation (LGO) and performance goal orientation (PGO), respectively. We further advance three-way interactions among different forms of rewards, goal orientations, and climate for innovation in predicting different types of creativity. Empirical analysis based on 220 independent dyads of employees and their supervisors confirmed most of our hypotheses. Intrinsic rewards exerted a significant main effect and interacted with LGO to predict radical creativity. Extrinsic rewards exerted a significant main effect and interacted with PGO to predict incremental creativity. The significant interaction between extrinsic rewards and PGO toward incremental creativity was further moderated by climate for innovation. This study offers elaborate and nuanced perspectives on and insights into the role of different rewards in predicting creativity of various types.

Author(s):

Muhammad Abdur Rahman Malik - abdur.malik@lums.edu.pk
Suleman Dawood School of Business, Lahore University of Management Sciences

Jin Nam Choi - jnchoi@snu.kr
Graduate School of Business, Seoul National University

Arif Butt - arifb@lums.edu.pk
Suleman Dawood School of Business, Lahore University of Management Sciences

 

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