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A Field Experiment in Motivating Employee Ideas

Gibbs, Michael and Neckermann, Susanne and Siemroth, Christoph (2017) 'A Field Experiment in Motivating Employee Ideas.' The Review of Economics and Statistics, 99 (4). pp. 577-590. ISSN 0034-6535

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We study a field experiment at a large technology company. Employees were encouraged to submit ideas on process and product improvements. The company randomly assigned nineteen teams into treatment and control groups. Treatment team employees received rewards if their ideas were approved. Nothing changed for control team employees. Our main finding is that rewards substantially increased the quality of ideas. Rewards increased participation in the suggestion system but decreased ideas per participating employee, with no net effect on the quantity of ideas. Broader participation persisted after the reward was discontinued, suggesting habituation. We find no evidence for motivational crowding out.

Item Type: Article
Additional Information: Source info: IZA Discussion Paper No. 8096
Uncontrolled Keywords: C93; J24; M52; O32; innovation; rewards; creativity; field experiment
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 01 Sep 2016 09:11
Last Modified: 15 Jan 2022 00:40

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