Innovative behaviour of knowledge workers and social exchange attributes of financial incentive: implications for knowledge management

Shu‐pei Tsai

61 citations0/0 files storedJournal of Knowledge Management

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Job Satisfaction and Organizational Behavior Employee Performance and Management Knowledge Management and Sharing

Abstract

Purpose Enhancing the innovative behaviour of knowledge workers is a main task in knowledge management. The pay-for-performance policy is one of the management practices for innovative behaviour enhancement and has been gaining popularity in the knowledge-intensive context. However, it is still uncertain whether such practice really enhances the innovative behaviour of knowledge workers. To address this issue, this paper aims to propose and verify a conceptual framework incorporating kernel notions of social exchange, psychological empowerment and work engagement rooted in the social cognition paradigm. Design/methodology/approach The current study conducts a survey on 608 knowledge workers and their supervisors, validating the model structure and causal path pattern of the proposed framework. The causality is delineated from social exchange attributes of financial incentive, psychological empowerment and work engagement to innovative behaviour of knowledge workers. Findings Perceived organisational support and perceived pay equity are primary antecedents of symbolic incentive meaning reflected in the financial incentive of the pay-for-performance policy. Symbolic incentive meaning comprising dimensions of relative position, control and personal importance relates positively to innovative behaviour of knowledge workers. Psychological empowerment and work engagement are partial mediators of the positive relationship. Originality/value The current study explicates why and how social exchange attributes of the financial incentive provided by the pay-for-performance policy may enhance innovative behaviour of knowledge workers. Implications are supplied to knowledge management scholars and practitioners to optimise the pay-for-performance policy for innovative behaviour enhancement.

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References

1998Social Capital, Intellectual Capital, and the Organizational Advantage 1995PSYCHOLOGICAL, EMPOWERMENT IN THE WORKPLACE: DIMENSIONS, MEASUREMENT AND VALIDATION.1988The Empowerment Process: Integrating Theory and Practice 2005The Influence of Intellectual Capital on the Types of Innovative Capabilities 1990Cognitive Elements of Empowerment: An "Interpretive" Model of Intrinsic Task Motivation 2001Reciprocation of perceived organizational support.2008Work engagement: An emerging concept in occupational health psychology 2016The dynamic componential model of creativity and innovation in organizations: Making progress, making meaning

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