Abstract
Innovation is an imperative component for the long-term survival of organisations and a successful tool to gain a competitive advantage over other firms. Innovation is a significant contributor for organisational success as innovation provides satisfactory returns to the company and increases value for its customers. Looking at the innovative climate which considers the procedures and reward system as a contributing factor, the importance of looking at job satisfaction variables and organisational work environment is considered significant. The current paper focuses on three motivation theories which are equity theory, Herzberg's motivation-hygiene theory and goal-setting theory as the fundamental base supporting several innovation factors. The main aim of this paper is to present a holistic view of the major motivational factors contributing to innovation climate that emerged significant after a systematic literature review. A detailed analysis of prior studies reveals that innovative climate is an outcome of various factors such as pay, learning environment, career development, job content, supportive environment and work hours.
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