The Next Step in Reward Creativity Research

Abstract

Research to investigate the effects of intrinsic and extrinsic rewards on creative behavior of employees has yielded non conclusive and conflicting findings. Most of the reward – behavior research is based on three assumptions, i.e., a- the relationship between rewards and creative behavior is direct and un-moderated, b- these rewards have similar effects on individuals irrespective of their dispositional differences, and c- both intrinsic and extrinsic rewards trigger similar types of creative behaviors. The present study challenges all of these assumptions. This study suggests that intrinsic and extrinsic rewards trigger distinct types of creative behaviors, and that the effects of rewards on creative behavior of individuals are moderated through personal and contextual factors. Results show that extrinsic rewards generally produce incremental creative behavior, whereas intrinsic rewards trigger radical creative behavior. Results also suggest that personal differences (such as goal orientation) and contextual factors (such as organizational climate) moderate the effects of rewards on creative behavior. Finally, the study identifies several conditions when intrinsic rewards may trigger incremental creative behavior whereas extrinsic rewards can produce radical creative behavior. The study guides managers to align personal dispositions of employees with contextual factors to enhance and achieve specific types of creative behaviors, as per the organizational requirements.