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The relationship between personal values, organizational formalization and employee work outcomes of compliance and innovation

Author

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  • Nathan Eva
  • Daniel Prajogo
  • Brian Cooper

Abstract

Purpose - The purpose of this paper is to examine the interaction between personal values and the organizational context in influencing work behaviors. Specifically, it examines the relationships between two dimensions of personal values based on Schwartz’s value theory – self-direction and conformity; and two work behaviors – innovation and compliance. Design/methodology/approach - Survey data were collected from 187 employees in Australia. Multiple regression method was used to test the hypotheses. Findings - The results showed that organizational formalization moderated the relationship between self-direction values and innovative behaviors. As hypothesized, the positive effect of self-direction values on innovative behavior was strongest in less formalized organizations. the authors also found that conformity values predicted compliance behaviors, but no evidence of moderation by organizational formalization. Practical implications - It is important for organizations seeking particular work behaviors to ensure they are hiring employees with corresponding values and structuring the degree of formalization in the organization accordingly. Originality/value - This research contributes to the interactionist perspective, demonstrating that formalization interacts with employee values to influence work behaviors. Further, the authors extend previous studies on self-direction values and creative behaviors by understanding how personal values impact innovative behavior.

Suggested Citation

  • Nathan Eva & Daniel Prajogo & Brian Cooper, 2017. "The relationship between personal values, organizational formalization and employee work outcomes of compliance and innovation," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(2), pages 274-287, May.
    • Handle: RePEc:eme:ijmpps:ijm-06-2015-0090
    DOI: 10.1108/IJM-06-2015-0090
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    Citations

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    Cited by:

    1. Malakkaran Johny Jino & Hima Elizabeth Mathew, 2021. "Can Formalisation Ensure Ethical Behaviour Among Teachers? The Mediating Role of Moral Efficacy," Business Perspectives and Research, , vol. 9(2), pages 306-323, May.
    2. Yu Zhou & Guangjian Liu & Xiaoxi Chang & Ying Hong, 2021. "Top-down, bottom-up or outside-in? An examination of triadic mechanisms on firm innovation in Chinese firms," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 131-162, February.
    3. Li, Xiaodong & Wang, Chuang & Hamari, Juho, 2021. "Frontline employees’ compliance with fuzzy requests: A request–appraisal–behavior perspective," Journal of Business Research, Elsevier, vol. 131(C), pages 55-68.
    4. Edgar A. Sánchez-Báez & José Fernández-Serrano & Isidoro Romero, 2018. "Personal Values and Entrepreneurial Attitude as Intellectual Capital: Impact on Innovation in Small Enterprises," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(49), pages 771-771, August.
    5. Ayesha Noor & Yuserrie Zainuddin & Shrikant Krupasindhu Panigrahi & Faridah binti Taju Rahim, 2020. "Investigating the Relationship among Fit Organization, Organization Commitment and Employee’s Intention to Stay: Malaysian Context," Global Business Review, International Management Institute, vol. 21(1), pages 68-87, February.
    6. repec:aud:audfin:v:20:y:2018:i:49:p:771 is not listed on IDEAS

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