Incentivizing the Creative Process: From Initial Quantity to Eventual Creativity

In two experiments, we examine whether performance-contingent incentives facilitate the creative process by enhancing the initial preparation that precedes creative incubation. The defining characteristic of both experiments is a second-stage task that is separated in time from the first-stage implementation of different incentive schemes. In Experiment 1, the second stage takes place ten days after we implement conditions with quantity incentives, high-creativity incentives, incentives with a minimum-creativity threshold, and a fixed-pay control condition. In Experiment 2, we test the effects of incentives with an incubation period of 20 minutes, during which an experimenter escorts participants on a walk between compensated work periods. In both experiments, we find that participants with quantity incentives outperform the high-creativity production of their fixed-pay counterparts only in the second-stage task. Mediation analyses suggest that quantity-incentivized participants' propensity to try more divergent ideas in the first stage sparks their creativity advantage in the second stage. JEL Classifications: D24; D91; M11; M41.

[1]  Sanjiv Erat,et al.  Incentives for creativity , 2016 .

[2]  G. Speckbacher Creativity Research in Management Accounting: A Commentary , 2017 .

[3]  M. Csíkszentmihályi,et al.  Creative Insight: The Social Dimension of a Solitary Moment , 2014 .

[4]  R. Weisberg Creativity: Beyond the Myth of Genius , 1993 .

[5]  Chee W. Chow,et al.  1983 Competitive Manuscript Award: The Effects of Job Standard Tightness and Compensation Scheme on Performance: An Exploration of Linkages , 2008 .

[6]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[7]  M. Cools,et al.  Management Control for Stimulating Different Types of Creativity: The Role of Budgets , 2011 .

[8]  Steven J. Kachelmeier,et al.  Measuring and Motivating Quantity, Creativity, or Both , 2008 .

[9]  M. Csíkszentmihályi Creativity: Flow and the Psychology of Discovery and Invention , 1996 .

[10]  John Baer Creativity and Divergent Thinking: A Task-Specific Approach , 1993 .

[11]  A. Hayes Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach , 2013 .

[12]  Michael Scharkow,et al.  The Relative Trustworthiness of Inferential Tests of the Indirect Effect in Statistical Mediation Analysis , 2013, Psychological science.

[13]  E. Deci,et al.  A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. , 1999, Psychological bulletin.

[14]  J. Fairbank,et al.  Motivating Creativity and Enhancing Innovation through Employee Suggestion System Technology , 2001 .

[15]  K. Gilhooly Incubation and Intuition in Creative Problem Solving , 2016, Front. Psychol..

[16]  Teresa M. Amabile,et al.  Creativity In Context: Update To The Social Psychology Of Creativity , 1996 .

[17]  Michael G. Williamson,et al.  Reward System Design and Group Creativity: An Experimental Investigation , 2012 .

[18]  J. Hadamard,et al.  The Psychology of Invention in the Mathematical Field. , 1945 .

[19]  Donald W. Taylor,et al.  DOES GROUP PARTICIPATION WHEN USING BRAINSTORMING FACILITATE OR INHIBIT CREATIVE THINKING , 1958 .

[20]  HU Min-zhong,et al.  On Creative Cognition , 2005 .

[21]  Andrew F. Hayes,et al.  Contemporary approaches to assessing mediation in communication research. , 2008 .

[22]  Bonnie B. Armbruster Metacognition in Creativity , 1989 .

[23]  Kristy L. Towry,et al.  Does the Communication of Causal Linkages Improve Employee Effort Allocations and Firm Performance? An Experimental Investigation , 2012 .

[24]  P. Paulus,et al.  Idea Generation in Groups : A Basis for Creativity in Organizations , 1994 .

[25]  Steven E. Salterio We Don't Replicate Accounting Research—Or Do We?† , 2014 .

[26]  William B. Tayler,et al.  Strategy Selection, Surrogation, and Strategic Performance Measurement Systems: strategy selection and surrogation , 2013 .

[27]  A. Ehrenberg,et al.  The Design of Replicated Studies , 1993 .

[28]  Pat Fallon,et al.  Juicing the Orange: How to Turn Creativity into a Powerful Business Advantage , 2006 .

[29]  Clara Xiaoling Chen Management Control for Stimulating Different Types of Creativity: The Role of Budgets , 2017 .

[30]  M. Runco,et al.  Divergent Thinking as an Indicator of Creative Potential , 2012 .

[31]  A. Ditillo,et al.  Management Control Systems for Creative Teams: Managing Stylistic Creativity in Fashion Companies , 2017 .

[32]  Shalini Khazanchi,et al.  Rewards and creative performance: a meta-analytic test of theoretically derived hypotheses. , 2012, Psychological bulletin.

[33]  John G. Lynch,et al.  Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis , 2010 .

[34]  William B. Tayler,et al.  Lost in Translation: The Effects of Incentive Compensation on Strategy Surrogation , 2012 .

[35]  Adrian Furnham,et al.  The Brainstorming Myth , 2000 .

[36]  Geoffrey B. Sprinkle,et al.  A Review of the Effects of Financial Incentives on Performance in Laboratory Tasks: Implications for Management Accounting , 2000 .

[37]  M. Sobel Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models , 1982 .

[38]  G. Wallas The art of thought , 1926 .

[39]  Kristopher J Preacher,et al.  SPSS and SAS procedures for estimating indirect effects in simple mediation models , 2004, Behavior research methods, instruments, & computers : a journal of the Psychonomic Society, Inc.

[40]  K. Gilhooly Incubation, problem solving and creativity , 2017 .

[41]  M. Runco,et al.  The Standard Definition of Creativity , 2012 .

[42]  Isabella Grabner,et al.  Incentive System Design in Creativity-Dependent Firms , 2014 .

[43]  S. West,et al.  A comparison of methods to test mediation and other intervening variable effects. , 2002, Psychological methods.

[44]  A. Hayes Beyond Baron and Kenny: Statistical Mediation Analysis in the New Millennium , 2009 .

[45]  Steven J. Kachelmeier,et al.  Attracting Creativity: The Initial and Aggregate Effects of Contract Selection on Creativity-Weighted Productivity , 2010 .