Social-Recognition versus Financial Incentives? Exploring the Effects of Creativity-Contingent External Rewards on Creative Performance

Abstract The present work examines the role of creativity-contingent monetary versus social-recognition rewards on creative performance and provides new insights into the underlying motivational processes through which these rewards affect consumer creativity. A series of five studies demonstrate that within the context of creativity contingency, monetary rewards induce a performance focus, while social-recognition rewards induce a normative focus. Such performance (normative) focus in turn enhances (attenuates) approach motivation to be original and hence leads to higher (lower) originality in a creative task. Thus, this work not only advances the current understanding of how and why two types of widely used creativity-contingent external rewards may have contrasting effects on creative performance, but it also offers important practical insights to managers who utilize reward systems in cultivating consumer creativity in their innovation platforms.