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Incentives and Performance pp 341–357Cite as

Incentivizing Innovation in Knowledge-Intensive Companies: Conceptual Analysis of the Fit Between Reward Programs and Organizational Contexts

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Abstract

In this conceptual study, I analyze the fit between corporate programs incentivizing innovation and knowledge-intensive organizational contexts. Based on the personal characteristics and contextual factors determining creative work behaviour the levers for rewarding innovation in knowledge-intensive business contexts are discussed. Drawing on fit theory, I corroborate the hypothesis that a “one size fits all” approach for programs incentivizing innovation does not fully leverage the creative potential of organizations. I analyze the dimensions and implications of the fit between incentive programs for innovation and knowledge-intensive organizational contexts and conclude with selected practical recommendations to improve this fit.

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Notes

  1. 1.

    Some authors have proposed more sophisticated phase models: idea extraction, idea landing and idea follow-up (Van Djik and Van den Ende 2002); idea generation, idea acceptance by coalition building, idea implementation, and transfer and diffusion (Kanter 1988).

  2. 2.

    For a systematic typology of creative contributions cf. Unsworth (2001).

  3. 3.

    Davila et al. (2006) differentiate between incentives and recognition rewards. They define incentives as contractually arranged links between performance and subsequent rewards, and recognition as voluntary and subjectively determined rewards which are not announced in advance. However, if recognition rewards are to have any motivational effect their existence must either be known or at least be reasonably expectable by the affected persons. Therefore, I use the terms “incentive” and “reward” more or less interchangeably in this article. “Reward” has a stronger focus on the actual presentation of the benefit, whereas “incentive” highlights the motivating effect of a contingent reward. By “recognition” I refer to the acknowledgement (verbal or other) by the organization of an achievement or a contribution.

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Authors and Affiliations

  1. Offenbach, Germany

    Sven Grzebeta

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  1. Sven Grzebeta
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Correspondence to Sven Grzebeta .

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Editors and Affiliations

  1. TUM School of Management, Technische Universität München, Munich, Germany

    Isabell M. Welpe

  2. TUM School of Management, Technische Universität München, Munich, Germany

    Jutta Wollersheim

  3. TUM School of Management, Technische Universität München, Munich, Germany

    Stefanie Ringelhan

  4. Zeppelin University, Friedrichshafen, Germany, and University of Zurich, Zurich, Switzerland

    Margit Osterloh

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Grzebeta, S. (2015). Incentivizing Innovation in Knowledge-Intensive Companies: Conceptual Analysis of the Fit Between Reward Programs and Organizational Contexts. In: Welpe, I., Wollersheim, J., Ringelhan, S., Osterloh, M. (eds) Incentives and Performance. Springer, Cham. https://doi.org/10.1007/978-3-319-09785-5_21

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