An Invisible Frontier? Intrinsic-Extrinsic Motivations and Knowledge Sharing in Firms

Abstract

This paper examines the motivational foundations, based on intrinsic and/or extrinsic factors, of knowledge creation, sharing and transferring process within manufacturing firms in an innovation perspective. First, using French data set, we study the interrelationships between knowledge management and motivation management practices, and their impact on knowledge sharing (defined as conducting a shared pool of knowledge). We find differences between firms' characteristics regarding size, technological sectors, group membership and innovation performance. Second, organizational diversity of the firms is showed. We identify three motivation management systems characterized respectively: (i) traditional firms i.e. traditional in their work organization; (ii) firms using motivation personel practices and (iii) learning firms using, added to motivation, knowledge management practices. Firms using motivation practices are linked to agency and incentives theories based on extrinsic factors. Learning firms use both interrelated intrinsic and extrinsic motivations as suggested by self-determination theory (SDT) and also by cognitive evaluation theory (CET) in which feelings of competence and autonomy are important for intrinsic motivation. Third, empirical evidence allows to conclude that motivation management systems have significant and positive impact on knowledge sharing, while marginal changes in individual practices have little effect. This logic of interrelationships accounts for synergies existing between these practices. The result supports the notion that motivation practices must be systematically associated with both intrinsic and extrinsic motivation practices and specific organization in order to reach the maximum performance.

Keywords: Motivational factor, Intrinsic and Extrinsic motivation, Knowledge management, Human resource practices, Innovation, Complementarity

JEL Classification: D21, M12, O32