Abstract
Does profit sharing really have impact on the employees’ propensity to make suggestions? And does psychological ownership, defined as a state in which individuals feel as though the target of ownership is theirs, mediate the relationship between profit sharing and employees’ propensity to make suggestions? Using ‘Survey on the employees’ attitude towards workplace innovation’ by Korea Labor Institute in 2020, this study investigates the effects of profit sharing on the employees’ propensity to make suggestions, and the mediating role of the psychological ownership in the relationship between profit sharing and employees’ propensity to make suggestions. The estimation results show that profit sharing is positively related with employees’ propensity to make suggestions, and psychological ownership partially mediated the relationship between profit sharing and employees’ propensity to make suggestions. Finally, we suggested the implications of our findings and proposed research questions.
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