Tangible and Intangible Rewards and Employee Creativity: The Mediating Role of Situational Extrinsic Motivation

Abstract

This study examined the effects of tangible and intangible forms of creativity-contingent rewards on employee creativity. Situation-specific intrinsic and extrinsic motivations were proposed as mediators of the reward-creativity link. Based on data collected from 271 employees and their supervisors, results revealed the following: (a) intangible rewards for creativity are positively related to intrinsic and extrinsic task motivations; (b) tangible rewards for creativity are negatively related to extrinsic task motivation; and (c) employee creativity, as rated by the supervisor, is positively related to extrinsic motivation, but not to intrinsic motivation. Results indicate the significance of differentiating the two types of creativity-contingent rewards, and highlight the need to reconsider the roles of intrinsic and extrinsic motivation in promoting creativity in organizations.