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Law Chan Ozer 2017 JKM
Law Chan Ozer 2017 JKM
Law Chan Ozer 2017 JKM
Abstract
Purpose – This paper aims to develop an integrated framework to demonstrate the individual and
combined effects of intrinsic and extrinsic motivators on two forms of knowledge sharing behaviors –
in-depth knowledge sharing and routinized knowledge sharing.
Design/methodology/approach – A range of work on the use of intrinsic and extrinsic motivators and
the differential degrees of costs and risks involved in the two forms of knowledge sharing is being
reviewed with the aim to locate gaps and problems arising from propositions of different scholars. An
integrated framework is then proposed to connect different schools of thoughts into a single, unifying
framework.
Findings – Knowledge sharing behaviors among employees are subject to both attractive and
distractive forces. Intrinsic and extrinsic motivators might interact positively or negatively depending on
the type of extrinsic motivator and the form of knowledge sharing. While enhancing the intrinsic
enjoyment of employees along with outcome-based extrinsic motivators can promote in-depth
knowledge sharing, the use of behavior-based extrinsic motivators is more appropriate for fostering
Kuok Kei Law is Assistant
routinized knowledge sharing.
Professor at the Lee Shau
Research limitations/implications – This paper mainly focuses on the sharing of knowledge without
Kee School of Business
examining the receiver side in knowledge sharing. Also, the use of punitive means by superiors in
and Administration, The encouraging knowledge sharing is not discussed in the framework. Future research can also add into
Open University of Hong the authors’ integrated framework the effects of personal traits in knowledge sharing.
Kong, Hong Kong, Hong Originality/value – This paper narrows the gap between existing theories on the use of extrinsic and
Kong. Andrew Chan is intrinsic motivators and offers an integrated theoretical framework for those interested in examining the
Associate Professor at inter-relationship among intrinsic motivators, extrinsic motivators and knowledge sharing behaviors.
the Department of Keywords Motivation, Knowledge management, Knowledge transfer, Knowledge sharing
Management, City Paper type Conceptual paper
University of Hong Kong,
Hong Kong, Hong Kong.
Muammer Ozer is based 1. Introduction
at the Department of
Knowledge sharing (KS), defined as the provision and reception of know-what and
Management, City
University of Hong Kong, know-how for performing tasks among organizational members (Foss et al., 2010), is the
Hong Kong, Hong Kong. quintessence of organizational knowledge management (KM) systems (Davenport and
Prusak, 1998; Zack et al., 2009) and “an essential source of firms’ sustainable competitive
advantage” (Osterloh and Frey, 2000, p. 538). There is an abundance of evidence
suggesting that organizations and their members are more productive when knowledge is
successfully shared and then learnt by the organizational members (Agrawal, 2006; Argote
et al., 2003; Haas and Hansen, 2007; Mon et al., 2007; Reychav and Weisberg, 2009). The
central question faced by managers therefore becomes “How to motivate employees to
Received 16 March 2016 share their knowledge with other organizational members?”
Revised 8 November 2016
9 January 2017
18 June 2017
Different motivational mechanisms including individual, organizational and
Accepted 11 August 2017 technological drivers have been identified and discussed in past studies (Cavaliere
PAGE 1486 JOURNAL OF KNOWLEDGE MANAGEMENT VOL. 21 NO. 6 2017, pp. 1486-1502, © Emerald Publishing Limited, ISSN 1367-3270 DOI 10.1108/JKM-03-2016-0119
et al., 2015; Ghobadi, 2015; Stewart et al., 2015; Wang and Noe, 2010). However, the
relationship between motivation and KS has remained ambiguous (Lam and
Lambermont-Ford, 2010; Stenuis et al., 2016) and scholars have repeatedly criticized
the extant literature for the lack of managerially relevant KS research that can inform
managers on how to govern KS behaviors in organizations (Alvesson and Karreman,
2001; Foss et al., 2010).
Motivation is the basis for individual behavior and performance according to the classic
theory of reasoned action (Fishbein and Ajzen, 1975). The motivation to perform can be
affected by two broad categories of motivators – intrinsic motivators (IMs) and extrinsic
motivators (EMs). In essence, employees can be said to be intrinsically motivated to share
knowledge if they perceive that the value of sharing is high and that this action satisfies their
needs; on the contrary, they are said to be extrinsically motivated to share knowledge if
some separable outcomes (e.g. rewards and recognition) are obtained through engaging
in the sharing behavior (Deci, 1975).
How managers can effectively make use of both IMs and EMs to promote employees’
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mostly explained by the motivation crowding theory (MCT) (Deci, 1972) in the existing
literature.
Traditional MCT predicts that people’s intrinsic motive to engage in a certain behavior
would be corrupted by the introduction of external interventions as the reason to perform
shifts from inside to outside the individual. The SDT also supports such a “crowding-out”
effect of EM on IM in that the controlling effect of EM often diminishes the autonomy of
individuals in determining their exhibited behavior, thus harming their continual intention to
perform (Ryan and Deci, 2000b). There are nevertheless two underlying assumptions in the
crowding-out argument. First, the behavior has to be initially intrinsically motivated, which
is somehow true for the case of KS as discussed in the previous sub-section. Second, there
was no external intervention prior to the introduction of EMs. This second assumption has
been criticized by motivation scholars by arguing that in real life, as opposed to
experimental settings, it is impossible to isolate IMs and EMs (Cerasoli et al., 2014; Ryan
and Deci, 2000a). In other words, employees are always subject to the simultaneous
influences of IMs and EMs. As a result, the crowding-out effect of EMs on IMs seems to be
an inherently contradictory argument. On one hand, EMs are supposedly used to overcome
the self-interests and other external concerns of employees in KS. On the other hand, the
use of EMs are criticized for the crowding-out of IMs based on the assumption that
employees are initially intrinsically motivated without being subject to any external
interventions or distractions. Gerhart and Fang (2014, p. 47) shared the same view that it
is important to consider EMs and IMs together, especially in workplaces and that “even if
PFIP [pay for individual performance] decreases intrinsic motivation, what matters more is
PFIP’s effect on total (intrinsic ⫹ extrinsic) motivation and this basic question had received
surprisingly little attention”.
In MCT, however, “the potential for positive effects of extrinsic rewards has been mostly
overlooked, while the potential negative effects on intrinsic outcome have been the focus”
(Gerhart and Fang, 2014, p. 47). When discussing the mechanisms of interaction between EM
and IM, Amabile (1993, pp. 194-195) proposed that there is one potential underlying
mechanism called “extrinsics in service of intrinsics”, which means “any extrinsic factors that
support one’s sense of self-determination should positively contribute to intrinsic motivation”.
Empirically, past studies seemed to confirm the dual effect of EM on IM. While Cameron
and Pierece’s (1994) meta-analysis of MCT in education and social psychology
experiments “concluded that financial rewards did not diminish a person’s intrinsic
motivation”, “a meta-study of motivation crowding theory by Weibel et al. (2007) showed
that tangible rewards had a significant and positive effect on the performance of individuals
who worked on extrinsically motivated tasks, but a negative relationship with tasks that
were intrinsically motivated” (Putra et al., 2017, p. 233). Moreover, Frey and Jegen’s (2001)
survey of “circumstantial evidence, laboratory evidence by both psychologists and
economists, as well as field evidence by econometric studies” provided strong empirical
evidence for the existence of both crowding-out and crowding-in effects of EM on IM.
These findings suggest that the dual nature of EM in affecting employees’ intrinsic motive
in engaging in KS – one diminishing and one facilitating. The duality in the motivating effect
of EM thus leads to mixed findings of the relationship between EM and KS. While Burgess
(2005), Martin-Perez et al. (2012) and Wasko and Faraj (2005) found a positive relationship
between a range of EMs (including organizational rewards, job stability, training
opportunity, work flexibility, personal reputation) and KS, Hung et al. (2011) and Quigley
et al. (2007) found incentives as a rather weak influence on KS when used alone. Bock
et al. (2005) even found a significant negative relationship between EMs and employees’
attitudes toward KS. Lucas and Ogilvie (2006, p. 19-20) explain the insignificant role of
incentives on KS by stating that incentives “were commonly perceived as “feel good”
rewards rather than carefully designed tools to generate action”. In other words, the mere
provision of incentives lacked the function of competence-affirming or enhancing
self-determination. As a result, it has been suggested that research on the effects of
incentives and other EMs on KS should further consider the EMs’ nature as well as their
IM
controlling path
affirming path
Desired
+ -
Behavior
EM
and rewards. On the other hand, they tend to compete with one another for promotions or
any other benefits based on the quantity and quality of the proprietary knowledge they
possess.
The social dilemma or coopetitive arguments are supported by the economic exchange
theory (Constant et al., 1994; Kelley and Thibaut, 1978) and the prospect theory
(Kahneman and Tversky, 1979; Tversky and Kahneman, 1992). The economic
exchange theory emphasizes rationalized self-interest in explaining individual
behaviors. Following this theory, employees’ concerns on time investments and
subsequent appropriation issues are expected to undermine the intrinsic and extrinsic
gains of KS, rendering them to be reluctant to share what they know. Moreover,
according to the prospect theory, people generally possess a risk averse tendency
when deciding whether to engage in a certain behavior. They would rather sacrifice the
present enjoyment or fulfillment of needs to avoid potential losses. Nevertheless, the
presence of a psychologically safe work environment can attenuate the risk averse
tendency of employees (Newman et al., 2017). Psychological safety is generally
defined as “a shared belief amongst individuals as to whether it is safe to engage in
interpersonal risk-taking in the workplace” (Newman et al., 2017, p. 522). Interpersonal
risk-taking here refers to a range of work behavior that may enable organizational
learning and improvement, for example, voicing new ideas, experimenting new ways of
doing things and sharing proprietary knowledge with co-workers (Edmondson, 1999;
Nembhard and Edmondson, 2011). Psychological safety not only shares some overlap
with but also represents the presence of other important facilitators of KS in the
workplace such as trust and justice: when employees trust their co-workers and
managers and perceive fairness in how their effort has been awarded, they feel
psychologically safe to continue contributing themselves to the continuous
improvement of the organization. Empirical evidences have shown that employees’
psychological safety is positively related to more interpersonal communication (Leroy
et al., 2012; Peltokorpi, 2004) and greater KS among team members (Mu and Gnyawali,
2003; Siemsen et al., 2009; Xu and Yang, 2010; Zhang et al., 2010). As a result, we offer
the following propositions to characterize the duality of KS behaviors as well as the
importance of employees psychological safety in their tendency to engage in KS:
P1a. Employees’ intention to engage in KS is subject to the simultaneous influences of
attractive (intrinsic and extrinsic) and distractive (concerns about time and
appropriation) forces.
P1b. With greater psychological safety, the distractive forces on employees’ intention to
engage in KS will be attenuated and vice versa.
organization, the high level of concerns on the costs and risks associated with the sharing
will strengthen the distractive force associated with engaging in the KS. The internal
struggle of employees toward in-depth KS will hence be greater than that of routinized KS
where the sharing involves less investment, less risk and also less intrinsic and extrinsic
rewards. We thus offer the following proposition to differentiate employees’ psychological
struggles toward the two forms of KS:
P2. The tension between the attractive and distractive forces experienced by
employees is greater in the case of in-depth KS than in the case of routinized KS.
Extrinsic Movators
is thus less controlling and more competence-affirming in nature (Pierce et al., 2003).
Based on the economic exchange theory (Constant et al., 1994; Kelley and Thibaut, 1978),
the provision of behavior-based EMs is likely to directly reduce employees’ concerns of
losses from engaging in KS by rewarding employees with immediate benefits when they
participate in KS. As long as the rewards gained from KS are likely to justify or outweigh the
costs incurred, employees will be willing to share knowledge with others for enhanced
self-interests. Such a motivating effect of EMs nonetheless crowds-out the intrinsic motives
of employees to engage in KS because the intention to share knowledge is mainly
attributed to the rewards received but not to the enjoyment gained from the sharing
behavior. We argue however that the crowding-out problem is inconsequential for
routinized KS as this form of sharing is often mandated and essential for basic tasks
completion regardless of employees enjoying the sharing or not. This means that routinized
KS is often extrinsically reinforced rather than intrinsically driven. Based on the SDT and the
meta-study of CRT by Weibel et al. (2007), we therefore posit that the economic and
controlling nature of behavior-based EM is appropriate in inducing routinized but not
in-depth KS:
P3a. The provision of behavior-based EMs is positively related to employees’ routinized
KS behaviors in that it can reduce employees’ concerns of personal risks and
investment in KS albeit the simultaneous occurrence of the crowding-out effect.
However, its effect on in-depth KS is negative as in-depth KS involves greater risks
and investments and relies more on employees’ intrinsic drives to share
knowledge.
On the contrary, outcome-based EMs are likely to enhance employees’ intrinsic motives
toward KS because rewards based on improved performance are likely to satisfy
employees’ intrinsic needs for competence and achievement by providing them with the
signal of increased competence and achievement (Amabile, 1993; Pierce et al., 2003).
Whether this crowding-in effect (because of competence-enhancing) or the traditional
crowding-out effect (because of the reason of performing shifts from inside to outside)
“prevails” depends on the form of KS targeted. For in-depth KS, we argue that the
crowding-in effect is likely to outweigh the crowding-out effect as the intention of employees
to participate in in-depth KS is more discretionary and with an aim to achieve some kind of
breakthrough or innovation at work. Engaging in in-depth KS is thus often an intrinsically
motivated behavior with its outcome highly related to one’s professional identification and
self-efficacy. In contrast, outcome-based KS may not be good to promote routinized KS, as
it has been shown to cause free-rider problem where one’s contribution can be easily
substituted by that of the others in the case of routinized sharing (Cabrera and Cabrera,
2002; Wasko and Faraj, 2005). In addition, routinized KS usually will not bring to significant
Rounized
KS
Behavior-
Senses of based EMs
achievement,
competence,
relatedness
Outcome-
based EMs
In-depth
KS
Employees’
psychological safety
Effects of IMs
IMs and EMs on motivating employees’ KS behaviors. The current literature is replete with
comparative studies between IMs and EMs but lacks more nuanced and genuine
investigation of the interactive effects between them. Second, we differentiate between
behavior-based and outcome-based EMs as well as between in-depth and routinized KS.
The apparent lack of such distinctions in previous studies might be one of the reasons
behind the inconsistent findings regarding the effect of EMs on KS. And our study can help
explain these inconsistencies. Third, we also developed a psychological framework of
employees illustrating the tension derived from the perceived risks and costs of KS.
Previous studies underplayed the influence of such a self-interest consideration on
employees’ motivation to engage in KS. Most studies assumed that KS was an intrinsically
motivated and “voluntary behavior that can be encouraged but not demanded by
managers (Kelloway and Barling, 2000)” (Carvalho de Almeida et al., 2016, p. 1,283). Such
a reliance on the voluntarism of employees has been challenged by scholars to be valid
only in lab settings but not in workplaces (Cerasoli et al., 2014; Osterloh and Frey, 2000).
Employees in real-life face all kinds of self-interest considerations and external
interventions. Our framework takes into consideration the weaknesses of relying on the
intrinsic drives of employees and demonstrates how suitable introduction of EMs is likely to
supplement the slow and uncertain outcome of IMs. The importance of examining the
complimentary or synergistic effect between IMs and EMs has been pinpointed by
Vallerand (1997, p. 347) who suggested that “we should not pit intrinsic against extrinsic
motivation because both motivations are present within the individual to different degrees.
What may be more useful is to uncover which configurations involving the different types of
motivators lead to the most desirable outcomes”.
The paper also has its limitations that future research can address. First and foremost, the
developed integrated framework has to be empirically tested in future research. Although
the theoretical constructs and the proposed relationships among them were all developed
from empirical evidences of past studies, empirical analysis is still encouraged for further
refining and specifying the content, the scope and the applicability of the framework.
Moreover, the arguments presented in the paper have focused largely on the sharing/
provision of knowledge by knowledgeable employees (i.e. the knowledge source). The
motivation of employees to seek and receive knowledge however is equally important in the
entire KS process (Ozer and Vogel, 2015; Zhang and Jiang, 2015). Future research should
thus examine the relationship among IMs, EMs and knowledge seeking/learning. Some
important research questions include:
RQ1. Is learning new knowledge an intrinsically enjoyable behavior as in the case of
sharing?
found that the effects of IMs and EMs on employees’ work effort were moderated by their
achievement goals. This finding suggests that “goals/motives and traits/dispositions are
likely to vary between persons” and these differences will influence the impact of motivators
on individuals. In sum, our work addresses calls for future research (Argote et al., 2003;
Foss et al., 2010; Kang et al., 2007) for more holistic and consolidated models in managing
KS behaviors. Despite its proliferation, the existing KS literature seems not “adequately
address how firms can manage the knowledge flows across different employee cohorts”
due to the disorganized and scattered nature of past studies (Kang et al., 2007, p. 243).
Instead of identifying or comparing what motivator possesses the best motivating effect, we
explored how different motivators can be used in combination to induce employees’ KS
behavior. All in all, our integrated work on motivation and KS is certainly just the first step.
to make real sense out of the “M” of KM (Alvesson and Karreman, 2001), researchers
should continue their efforts in discovering the right blends of managerial mechanisms to
foster KS as well as other KM behaviors.
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Organization Science, Vol. 12 No. 2, pp. 215-234.
Muammer Ozer is a Professor of Management at the City University of Hong Kong and
Director of Doctor Business Administration (DBA) program at the same university. He
received his PhD in Business Administration from the University of Pittsburgh. His research
has appeared in journals such as Journal of Management Information Systems, Journal of
Applied Psychology and Strategic Management Journal. His current research interests
include knowledge sharing and utilization, software development, information technologies
and innovation management.
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