Individual Employees' Responses to Group Incentives: The Moderating Role of Innovation

• Published in: Journal of business and psychology Vol. 28; no. 2; pp. 175 - 187
• Main Authors: Park, Rhokeun, Kim, Jungsik
• Format: Journal Article
• Language: English
• Published: Boston Springer 01.06.2013; Springer US; Springer Nature B.V
• Subjects: Attitudes; Behavioral Science and Psychology; Business and Management; Business innovation; Business structures; Community and Environmental Psychology; Employee attitude; Employee motivation; Group incentives; Human resource management; Human resources; Hypotheses; Incentive plans; Incentives; Industrial and Organizational Psychology; Innovations; Management science; Motivation; Multilevel models; Occupational psychology; Organization theory; Participation; Perceptions; Personality and Social Psychology; Product innovation; Productivity; Psychological aspects; Psychology; Social exchange theory; Social Sciences; Studies; Teamwork; Technological innovation; South Korea; Innovation; Perceived organizational support; Organizational commitment; Cross-level analysis; Group-incentive participation
• DOI: 10.1007/s10869-012-9270-9
• ISSN: 0889-3268

Purpose This study examined the mediating role of perceived organizational support (POS) in the relationship between group-incentive participation and organizational commitment. The study also investigated the moderating role of innovation in the relationship between group-incentive participation and POS and the relationship between group-incentive participation and organizational commitment. Design/Methodology/Approach The proposed hypotheses were tested by hierarchical linear modeling by means of survey data that were collected in South Korea in 2008. Findings The results showed that the relationship between group-incentive participation and organizational commitment was fully mediated by POS. Cross-level analyses revealed that group-incentive participation had stronger relationships with POS and organizational commitment in more innovative companies than in less innovative companies. Implications These findings contribute to the literature by identifying the characteristics of organizations in which group-incentive participation is more effective. In particular, innovative companies could benefit from adopting group-incentive practices because these practices are more strongly related to POS and organizational commitment in more innovative companies. Originality/Value Whereas previous studies on group incentives have mainly focused on the effects of group incentives at the organizational level, this study bridged the gap between macro- and microapproaches through multi-level analyses. This study is unique in that it examined the vertical fit between group incentives and organizational characteristics while focusing on individual employees' perceptions and attitudes.