Guardrails on the Creative Process: The Impact of Decision Rights and Incentives on Creativity
Alisa G. Brink et al.
Abstract
Our study investigates how decision-making rights—specifically, the prerogative of identifying which of one’s own creative products advances for consideration—affect employee creativity under performance-dependent and fixed compensation. Drawing on the dual-process perspective of creativity and satisficing behavior, this study proposes that employees without decision rights over the selection of their creative output exhibit superior creative performance when compensated based on the creativity of their output, as opposed to their counterparts with such decision rights. In fixed compensation settings, decision rights do not have a discernible effect on creative outcomes. Decision rights under performance-dependent compensation prompt employees to engage in less divergent thinking, more convergent thinking, and to exhibit satisficing behavior that ultimately curtails the production of creative work. This study demonstrates how structuring decision rights and aligning them with compensation systems can enhance creative performance, providing organizations with actionable insights for fostering innovation while maintaining managerial control. Data Availability: Contact the authors. JEL Classifications: D91; M41; M49; O31.
1 citation
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.16 × 0.4 = 0.06 |
| M · momentum | 0.53 × 0.15 = 0.08 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.