Satya Wacana Conference & Seminar, International Conference on Human Resource Management

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Karin Sanders

Date: 2016-09-26 10:30 AM – 11:30 AM
Last modified: 2016-09-15


Drawing on a structuring framework, this study investigates the effects of two internal factors, performance-related rewards and HR strength, and an external factor, uncertainty avoidance of a country, on employees’ innovative behavior. We first hypothesize that performance-related rewards will influence innovative behaviors in a positive direction, and secondly, that this relationship is stronger when employees understand Human Resource Management (HRM) as was intended by management (i.e. high HR strength). Finally, we assess the effect of uncertainty avoidance on the relationship between performance-based rewards and innovative behaviors. While the two-level data from 2741 employees and 383 supervisors in 55 organizations across 11 countries did not show a relationship between performance-based rewards and innovative behavior, the results show that HR strength positively moderates and uncertainty avoidance negatively moderates this relationship. The results offer novel insights into how firms can use internal factors in a systematic manner to promote innovative behavior in their workplace, and highlight the limitations of sustaining innovative behaviors in countries characterized by high levels of uncertainty avoidance.


Innovative Behaviour, Performance based-rewards, Uncertainty Avoidance

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