Incentives to innovate in response to competition: The role of agency costs

Bessonova, Evguenia; Gonchar, Ksenia

doi:10.1016/j.ecosys.2016.09.002

Cited by 18 publications

(10 citation statements)

References 38 publications

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“…Further still, some studies found that outcome rewards in any form were detrimental to the motivation to innovate (Antikainen et al, 2010 ; Poskela & Martinsuo, 2009 ). These other studies’ results tended to find that including a variety of rewards was the best strategy if rewards were necessary (Bessonova & Gonchar, 2017 ; Cordero et al, 2005 ; Maria Stock et al, 2017 ). Curran and Walsworth ( 2014 ) found that it was sometimes possible to increase innovation with compensation, but only with the correct compensation, which connects to the arguments of Hopkins ( 2016 ), who calls for material, communal, or related incentives to foster innovative behavior.…”

Section: Results For Perceived Values: What Makes Innovation Worth Domentioning

confidence: 96%

“…Studies pointed to strategies that built investment to be highly effective in promoting innovation. These strategies included decision-making being proportional to the amount of investment in corporations where the board held a controlling interest in the company (Bessonova & Gonchar, 2017 ). When boards made up of employees held a controlling interest, innovation was more common than when they did not.…”

Section: Results For Perceived Values: What Makes Innovation Worth Domentioning

confidence: 99%

“…When boards made up of employees held a controlling interest, innovation was more common than when they did not. Similar non-corporate situations where the decision makers were personally and sometimes monetarily invested in the outcome of an endeavor tended to also be more likely to support innovation (Bessonova & Gonchar, 2017 ; Hartmann, 2006 ; Wendelken et al, 2014 ). In situations where individuals were personally invested in their endeavors, innovation tended to increase.…”

Section: Results For Perceived Values: What Makes Innovation Worth Domentioning

confidence: 99%

“…While financial incentives were hypothesized to have some positive benefits such as increasing interest, an organization or group with too much of a focus on monetary rewards actually increases the cost of innovating as a result of the cutthroat behavior of some workers (Sorice & Donlan, 2015 ). To combat this, extrinsic rewards once utilized need to be used with increasing frequency and magnitude (Bessonova & Gonchar, 2017 ; Maria Stock et al, 2017 ; Sorice & Donlan, 2015 ) in a manner that seems reminiscent of a pattern of addiction. To have the same effect, increased amounts of rewards needed to be utilized to sustain the pattern of behavior.…”

Section: Results For Cost In the Literature: What Is Betweementioning

confidence: 99%

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Leader strategies for motivating innovation in individuals: a systematic review

Soleas

2020

J Innov Entrep

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Innovation is a topic of intense interest and is seen as key to confronting the vast majority of issues facing humanity. To consolidate the knowledge about approaches promoting innovation, this study conducted a systematic review integrating an alldatabase (n = 375) search through EBSCOhost completed on April 6th, 2019 in addition to search engine use. Three hundred three studies were full-text reviewed yielding 82 final studies eligible for the inclusion in findings extraction. The findings were synthesized and then organized into the Expectancy-value-cost (EVC) motivation framework to isolate promotive and hindering factors. It is clear that there is an unbalanced primacy in the innovation literature in favor of business and corporate settings with very little representation from the arts or social justice sectors. There is also a common trend of using surveys of individuals in organizations within a single discipline, while interviews are rare. The paucity of studying costs of innovation in the literature is symptomatic of the primarily positive psychology approach taken by studies, rather than a framework like EVC which also considers detractive factors like costs. Numerous studies provide support for the notion that more internal motivations like intrinsic (e.g., interest) and attainment (e.g., importance, fulfillment) were more influential than external motivators like rewards as targets of strategies. Leaders should focus, whenever possible, on topics that engaged curiosity, interest, and satisfaction and, if they choose to use rewards, should focus their strategies to give related rewards; otherwise, they risk sundering the internal motivation to innovate for already interested workers.

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Section: Results For Perceived Values: What Makes Innovation Worth Domentioning

confidence: 96%

Section: Results For Perceived Values: What Makes Innovation Worth Domentioning

confidence: 99%

Section: Results For Perceived Values: What Makes Innovation Worth Domentioning

confidence: 99%

Section: Results For Cost In the Literature: What Is Betweementioning

confidence: 99%

See 2 more Smart Citations

Leader strategies for motivating innovation in individuals: a systematic review

Soleas

2020

J Innov Entrep

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show abstract

“…Only a small number of firms are active on the market and regularly update their product lines by introducing innovations. This could be due to how companies structure various types of innovation efforts, outdated models of development strategies, and ineffective internal management (Bessonova and Gonchar, 2017). Given the close link between the integration of technologies and innovation, long-term sustained growth and an increase in general productivity may be under threat.…”

Section: Introductionmentioning

confidence: 99%