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The effects of joint reward system in new product development

Author

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  • Tsun Jin Chang
  • Shang Pao Yeh
  • I‐Jan Yeh

Abstract

Purpose - This study purports to examine the effects of a joint reward system (JRS) under a new product development (NPD) setting by identifying four neglected aspects of JRS that contains a procedural view (participation of reward decision and reward contingent on NPD phases) and a monetary view (risk‐free to participate and over‐reward incentive) in a conceptual model, and then to empirically test their effects on knowledge sharing and NPD performance. Design/methodology/approach - Using regression analysis, the proposed model was tested on 233 valid respondents (112 in R&D, 50 in marketing, and 71 in manufacturing), including 92 from electronics firms, 87 from semiconductor firms, 29 from biotechnology firms, and 25 from pharmaceutical firms in Taiwan. Findings - The results indicated that risk‐free to NPD project members is the most salient aspect of JRS on knowledge sharing and NPD performance. Joint determination of reward allocation was found to be a favorable JRS for only marketing and NPD performance. Rewards contingent on NPD phases have shown conflicting results between R&D and marketing. No relationship was found for over‐reward incentive on knowledge sharing and NPD performance. Despite the mixed effects of JRS, knowledge sharing is a strong predictor of NPD performance. Originality/value - This study extends understanding of the complexities of rewards on knowledge sharing and NPD success by decomposing and testing four unique aspects of JRS, which sheds a new light on NPD researches.

Suggested Citation

  • Tsun Jin Chang & Shang Pao Yeh & I‐Jan Yeh, 2007. "The effects of joint reward system in new product development," International Journal of Manpower, Emerald Group Publishing Limited, vol. 28(3/4), pages 276-297, June.
  • Handle: RePEc:eme:ijmpps:v:28:y:2007:i:3/4:p:276-297
    DOI: 10.1108/01437720710755254
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    Citations

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    Cited by:

    1. Ryan Mullins & Raj Agnihotri, 2022. "Digital selling: organizational and managerial influences for frontline readiness and effectiveness," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 800-821, July.
    2. Emin Karagözoğlu & Kerim Keskin & Çağrı Sağlam, 2021. "Race meets bargaining in product development," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 702-709, April.
    3. Nancy Vargas & M. Begoña Lloria & Addisson Salazar & Luis Vergara, 2018. "Effect of exploitation and exploration on the innovative as outcomes in entrepreneurial firms," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 1053-1069, December.
    4. Sherf, Elad N. & Venkataramani, Vijaya, 2015. "Friend or foe? The impact of relational ties with comparison others on outcome fairness and satisfaction judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 128(C), pages 1-14.
    5. Mashallah Valikhani & Ebrahim Hashempoor & Bahador Moradi Vastegani, 2015. "Investigating the Effect of Job-Related Motivational Factors on the Employee and Organizational Performance through Mediating Role of Organizational Participation (Entekhab Industrial Group Case Study," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(7), pages 1-16, July.

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