The Role of Performance-based Rewards and Developmental Performance Appraisal in Promoting Innovative Work Behaviour: The Mediating Roles of Affective Commitment and Knowledge Sharing

Abstract

The aim of this paper is to study the role of the motivation-enhancing human resource management practices of performance-based rewards and developmental performance appraisal in fostering innovative work behaviour (IWB). Furthermore, the paper considers the mediating roles of affective commitment and knowledge sharing in this relationship. The data was collected using a survey questionnaire from 235 unit managers working in technological, pharmaceutical, banking and manufacturing firms in Jordan. Structural-equation modeling using AMOS27 was employed to analyze the data. Findings indicated that performance-based rewards and developmental performance appraisal both have significant effects on affective commitment and knowledge sharing and that there is a direct and significant impact of performance appraisal on IWB. Affective commitment was found to mediate the relationship between rewards, performance appraisal and IWB. No support was found for the direct impact of rewards or knowledge sharing on IWB.