Prior research has produced conflicting views on whether incentives help or hinder innovation in organizations. In addressing these controversial views, we argue for the importance of focusing on the effects of incentives on the allocation of effort across different behaviors. We highlight distal search and knowledge exchange as two key behaviors within the innovation process and we argue for combining explicit and implicit incentives for fostering them. More specifically, we propose a complementary role of knowledge exchange and distal search behavior in creating innovation performance and we develop hypotheses on how incentives support both of these behaviors to drive innovation performance. We test our hypotheses using survey and patent data from 282 firms in the chemical and pharmaceutical industry and find evidence that is consistent with our predictions.
30 Mai 2018 → 1 Juni 2018
European Accounting Association 41st Annual Congress
Österreichische Systematik der Wissenschaftszweige (ÖFOS)