How Individualism‐Collectivism Moderates the Effects of Rewards on Creativity and Innovation: A Comparative Review of Practices in Japan and the US

Abstract

Recent research has shown that the relationship between rewards and creative performance is complex: while rewards increase creativity in some situations, they are detrimental to creative performance in others. The present paper explores the role of cross-cultural differences in moderating some effects of rewards on creativity and innovation. I focus on individualismcollectivism and its related differences in motivation, cognition and emotion. I then propose five ways in which differences in I-C between Japan and the US moderate the effects of incentives on creative performance and innovation in these nations. Specifically, I claim that organizations in individualistic and collectivist cultures differ on: Effects of rewards on intrinsic motivation, effects of in-group versus out-group controlled rewards, effects of group vs. individual based incentives, reactions to in-group and out-group competition, and the effects of members' identification with the organization on their innovation efforts. The notion of`congruence' is offered as a theoretical framework for explaining the proposed ideas. Recommendations and implications of these prepositions for management of creativity in a cross-cultural work force are discussed.

Collectivism and employees' innovative behavior: The mediating role of team identification and the moderating role of leader‐member exchange

“…Recently, literature suggests that collectivism is a psychological tendency that reflects an individual's level of concern for others and the entire collective . First, employees' collectivism will bolster their motivation and willingness to make extra contributions to the collective (Eisenberg, 1999;Rossberger, 2014). Accordingly, the present study suggests that employees' collectivism can be associated positively with their innovative behavior.…”

Innovation quality in knowledge cities: Empirical evidence of innovation award competitions in Finland

“…Similarly, Azadegan and Pai (2008) associate product innovation awards to direct sales growth and performance. However, the effects of awards on innovation and creativity are anything but straightforward (Eisenberg, 1999).…”

Decoupling management and technological innovations: Resolving the individualism–collectivism controversy

“…The contrast between individualism and collectivism has been extensively studied to explain creativity and innovation (Eisenberg, 1999). These cultural conditions can contribute to determining whether, when, how, and in what form a new innovation will be adopted (Herbig and Dunphy, 1998;Herbig and Day, 1993).…”