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| An Empirical Study on the Relationship between Pay for Performance and
Team Members’ Innovation Behavior |
| ZHANG Yong,LONG Lirong |
| Huazhong University of Science and Technology,Wuhan, China |
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Abstract From expectancy theory prospective, we conduct an empirical study on the relationship between pay for performance (PFP) and team members’ engagement in exploratory innovation and exploitative innovation in work team. We also examine whether these relations are moderated by performance appraisal interval (PAI). Based on a sample comprising 49 team supervisors and 316 team members, the findings showed: 1) there exists a nonsignificant PFPexploration activities relation and a positive correlation between PFP and exploitation activities; 2) PFP has a positive effect on exploration activities for teams with long PAI and a negative effect on exploration activities for teams with short PAI. (3) PAI does not have a significant moderating effect on the relationship between PFP and team members’ exploitation activities.
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Received: 07 August 2012
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2013, Vol. 10 
