Driving Innovation: Reviewing the Role of Rewards

Abstract

The role of rewards in promoting innovation has received considerable attention in both theory and practice. The fact that rewards have a positive impact on promoting innovation is well established. However, this relationship is complex since different types of rewards are suited for various kinds and stages of innovation. Further, an alternate view undermines the role of rewards in promoting innovation. Through an exhaustive literature review, this study illustrates the complex relationship between rewards and innovation as well as the role of rewards in promoting innovation. This analysis throws light on the utility of various rewarding practices in promoting innovation. Thus, understanding the complexities of rewards systems for engaging talents in processes of creativity and innovation reflects the needs to design rewards systems, which strategically and ethically fits any organizational entity. Hence, both theorists and practitioners need a more holistic approach in designing a dynamic rewards system that encompasses issues of role, timing and magnitude of the rewards in order to drive innovation.

Moral Leadership, Shared Values, Employee Engagement, and Staff Job Performance in the University Value Chain

“…The regression result for model 1 (see Table 5) has implicated that value-reward leadership practice significantly relates to productivity of the university's academic and non-academic staffs. Building on that premise it stands to affirm how enforcing integrative and coherent reward system, revolving around equity, justice, and fair play is critical to unleashing staff's creative and innovative thinking on one hand (Li, Chen, & Lai, 2017;Al Darmaki, Omar, & Wan Ismail, 2019) and the integrity and oneness of the group on the other hand (Fudge & Schlacter, 1999).…”

Exploring the factors affecting elementary mathematics teachers’ innovative behavior: an integration of social cognitive theory

“…With rewards given to teachers for their innovations, the anxiety associated with innovation among teachers may decrease. The previous result predicted that rewards are related to individual behavior 45 , 46 . Therefore, the reward factor may be able to encourage mathematics teachers to innovative behavior.…”

Connecting the dots: a serial mediation of intellectual capital and organizational ambidexterity between high-performance work system and innovation performance

“…Rewards are important stimuli as innovation requires efforts and participation from employees that are not linked to their routine jobs. A higher degree of IP is expected to be achieved by organizations when their employees believe fair rewards system (Al Darmaki et al ., 2019).…”

“…Further, RBV also help in understanding the HPWS-IP relationship by postulating that IP can be witnessed in organizations through the professional selection, training, appraising and rewarding of superior human capital (Bhatti et al, 2020;Al-Darmaki et al, 2019), to increase their motivation and commitment for creative thinking and innovation. Thus, based on the aforementioned discussion, it can be concluded that HPWS leads toward innovation performance and study proposes the following hypothesis.…”