Differential impact of short-term and long-term group incentives
Abstract
Purpose
The purpose of this paper is to investigate the additive and differential effects of short-term-oriented group incentives (STOGIs) and long-term-oriented group incentives (LTOGIs) on psychological ownership and organizational commitment.
Design/methodology/approach
This study analyzed data from 17,255 US employees in the 2005 data set of the National Bureau of Economic Research Shared Capitalism Research.
Findings
Both additive indices of group incentives have direct positive relationships with psychological ownership and organizational commitment, as well as indirect positive relationships with organizational commitment through psychological ownership. STOGIs have a stronger relationship with organizational commitment and LTOGIs have a stronger relationship with psychological ownership.
Originality/value
The value of this research lies in exploring the differential effects of short-and long-term group incentives, which provides new insight into the theory of group incentives and practical implications for their effective utilization.
Keywords
Acknowledgements
An earlier version of this manuscript was presented at the 71st annual meeting of the Academy of Management, San Antonio, TX. The authors received the financial support from the Employee Ownership Foundation and the Rosen Ownership Opportunity Fund. The authors truly appreciate Douglas L. Kruse and Joseph R. Blasi for their valuable comments and assistance.
Citation
Han, K. and Kim, A. (2018), "Differential impact of short-term and long-term group incentives", Employee Relations, Vol. 40 No. 3, pp. 549-564. https://doi.org/10.1108/ER-10-2016-0202
Publisher
:Emerald Publishing Limited
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