Individual Employees' Responses to Group Incentives: The Moderating Role of Innovation.

Purpose: This study examined the mediating role of perceived organizational support (POS) in the relationship between group-incentive participation and organizational commitment. The study also investigated the moderating role of innovation in the relationship between group-incentive participation and POS and the relationship between group-incentive participation and organizational commitment. Design/Methodology/Approach: The proposed hypotheses were tested by hierarchical linear modeling by means of survey data that were collected in South Korea in 2008. Findings: The results showed that the relationship between group-incentive participation and organizational commitment was fully mediated by POS. Cross-level analyses revealed that group-incentive participation had stronger relationships with POS and organizational commitment in more innovative companies than in less innovative companies. Implications: These findings contribute to the literature by identifying the characteristics of organizations in which group-incentive participation is more effective. In particular, innovative companies could benefit from adopting group-incentive practices because these practices are more strongly related to POS and organizational commitment in more innovative companies. Originality/Value: Whereas previous studies on group incentives have mainly focused on the effects of group incentives at the organizational level, this study bridged the gap between macro- and microapproaches through multilevel analyses. This study is unique in that it examined the vertical fit between group incentives and organizational characteristics while focusing on individual employees' perceptions and attitudes. [ABSTRACT FROM AUTHOR]