Incentivizing innovation in knowledge-intensive companies: Conceptual analysis of the fit between reward programs and organizational contexts

Abstract

In this conceptual study, I analyze the fit between corporate programs incentivizing innovation and knowledge-intensive organizational contexts. Based on the personal characteristics and contextual factors determining creative work behaviour the levers for rewarding innovation in knowledge-intensive business contexts are discussed. Drawing on fit theory, I corroborate the hypothesis that a “one size fits all” approach for programs incentivizing innovation does not fully leverage the creative potential of organizations. I analyze the dimensions and implications of the fit between incentive programs for innovation and knowledgeintensive organizational contexts and conclude with selected practical recommendations to improve this fit.