Dynamics of incentives and value creation in (de-)centralised incentive systems
by Nicole Zimmermann
International Journal of Entrepreneurial Venturing (IJEV), Vol. 8, No. 1, 2016

Abstract: When young and small organisations grow into medium-sized organisations they often implement monetary incentive systems with unclear consequences. Whilst implemented to increase employee (innovative) output and value creation, they have ambiguous effects and may even reduce value creation. Due to the different effects of monetary incentives, this paper distinguishes reciprocal and opportunistic employees' different reactions to incentives. It analyses the effects of decentralised incentive systems - and thus of incentive systems targeted better at opportunistic vs. reciprocal employees - on value creation. Here, it proposes a causal feedback structure explaining opportunistic and reciprocal employees' different reactions and it investigates by simulation how incentives and value creation interact over time. The analysis reveals that behaviour is not pre-determined by employee disposition. It shows how dynamics evolve dependent on the interrelationships of employee dispositions and the organisational context. As such, it exemplifies the usefulness of studying dynamics of incentive systems and employee behaviour.

Online publication date: Thu, 28-Jan-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Entrepreneurial Venturing (IJEV):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com