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Innovative behaviour of knowledge workers and social exchange attributes of financial incentive: implications for knowledge management

Shu-pei Tsai (Department of Public Relations and Advertising, Shih Hsin University, Taipei, Taiwan)

Journal of Knowledge Management

ISSN: 1367-3270

Article publication date: 18 May 2018

Issue publication date: 18 October 2018

2107

Abstract

Purpose

Enhancing the innovative behaviour of knowledge workers is a main task in knowledge management. The pay-for-performance policy is one of the management practices for innovative behaviour enhancement and has been gaining popularity in the knowledge-intensive context. However, it is still uncertain whether such practice really enhances the innovative behaviour of knowledge workers. To address this issue, this paper aims to propose and verify a conceptual framework incorporating kernel notions of social exchange, psychological empowerment and work engagement rooted in the social cognition paradigm.

Design/methodology/approach

The current study conducts a survey on 608 knowledge workers and their supervisors, validating the model structure and causal path pattern of the proposed framework. The causality is delineated from social exchange attributes of financial incentive, psychological empowerment and work engagement to innovative behaviour of knowledge workers.

Findings

Perceived organisational support and perceived pay equity are primary antecedents of symbolic incentive meaning reflected in the financial incentive of the pay-for-performance policy. Symbolic incentive meaning comprising dimensions of relative position, control and personal importance relates positively to innovative behaviour of knowledge workers. Psychological empowerment and work engagement are partial mediators of the positive relationship.

Originality/value

The current study explicates why and how social exchange attributes of the financial incentive provided by the pay-for-performance policy may enhance innovative behaviour of knowledge workers. Implications are supplied to knowledge management scholars and practitioners to optimise the pay-for-performance policy for innovative behaviour enhancement.

Keywords

Citation

Tsai, S.-p. (2018), "Innovative behaviour of knowledge workers and social exchange attributes of financial incentive: implications for knowledge management", Journal of Knowledge Management, Vol. 22 No. 8, pp. 1712-1735. https://doi.org/10.1108/JKM-07-2017-0293

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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