Status Differences and Knowledge Transfer: The Effect of Incentives

• In Event: Managerial Accounting Incentives

Abstract

In this study, we examine how incentive systems influence knowledge transfer between individuals with and without status differences. In our experiment, dyad members receive a group or individual incentive, while status differences are manipulated by assigning different job titles. Results suggest that there is significantly more knowledge shared with a group incentive relative to an individual incentive when status differences are present, whereas the amount of knowledge shared does not differ for equal status groups with these incentives. We can explain these results via theory suggesting that group incentives are able to mitigate the negative behaviors generally associated with status differences, while individual incentives might even reinforce them. Alternatively, equal status groups do not need a group incentive to be aware of the advantages of knowledge sharing. We contribute to the literature and practice by showing that the effect of incentives depends on the social context. Moreover, we suggest that job titles can shape status-based behavior, but these behaviors can be managed.

Authors

• Katlijn Haesebrouck, KULeuven

• Martine Cools, Katholieke Universiteit Leuven

• Alexandra Van den Abbeele, KU Leuven