Do organizational incentives spur innovation?

Knowledge Management in Brazil: What Governance Mechanisms are Needed to Boost Innovation?

“…The value of adjusted R 2 indicates that our model explains 24.6% of variance in innovation performance. This explanatory power is in line with previous studies of knowledge management as antecedent for innovation performance, where explained variance varies from 15 to 40% (e.g., Barros & Lazzarini, 2012; Darroch, 2005; Ellonen et al, 2008; Inkinen et al, 2015) and it is satisfactory considering that knowledge management is just one of the potential antecedents for innovation (Crossan & Apaydin, 2010). The value of Stone-Geisser-criterion Q 2 = 0.155 indicates acceptable predictive relevance (Stone, 1974) of our model.…”

“…Among ‘people-focused’ knowledge governance mechanisms, one of the cornerstones is creating stimuli for employees to engage in knowledge behaviors. One of the ways to stimulate employees to share and create knowledge – and, ultimately, to innovate – is to offer rewards for these behaviors, as they tell them what is expected and encouraged (Barros & Lazzarini, 2012; Foss et al, 2015). Such rewards may include bonuses, additional points for promotion, or public recognition for employees’ contributions to knowledge processes, e.g., active knowledge sharing with colleagues, developing new ideas, or useful applications of recently created knowledge.…”

Human resource policies and firm innovation: The moderating effects of economic and institutional context

“…Shalley, Zhou and Oldham, 2004;Bandiera, Barankay and Rasul, 2005;Inderst, 2009). This strong positive result attests the importance of PBP policies in a wider and international context, thus contributing to debate about how extrinsic motives hinder the creativity of workers by pushing them to safe solutions and supporting the idea of an extrinsic motive to further foster creativity and innovation within organizations (Barros and Lazzarini, 2012).…”

“…Finally, from an agency perspective we can conceptualize HR policies as a way to align the interests of employees and management (Jensen and Meckling, 1976;Barros and Lazzarini, 2012) which can then further foster innovation as a result of having common objectives, clear communication, and access to resources/support to achieve these goals (Huselid, 1995;Barros and Lazzarini, 2012;Zoghi, Mohr and Meyer, 2010). Overall, these different theoretical tenets support overwhelmingly the idea that organizations can trigger significant positive effects in terms of performance both at individual and organizational levels, simply by choosing and customizing its HR policies in light of its goals (Laursen and Foss, 2003;Zhu, Hong and Liu, 2013).…”

“…In addition to these direct benefits, such systems have been consistently shown to promote lower turnover rates among employees, as well as better financial performers of firms that adopt them (Huselid, 1995). With regards to innovation, PBP policies have been closely linked to extrinsic motivation, acting as a catalyst for employee creativity (Barros and Lazzarini, 2012) and "the types of innovative behavior that management requires" (Evans, Farquar and Landreth, 1989, p. 187).…”