When Should We Reward Creativity: A New Perspective on Creativity Types

Abstract

This study investigates the effects of different types of reward on the performances of two types of creativity. We challenge the assumption that creativity is a unitary concept that cannot be differentiated. Specifically, we distinguish creativity into expected creativity (for open, self-discovered problems) and responsive creativity (for closed, presented problems) (Unsworth, 2001). We examine whether monetary reward (present or absent) has different effects on creativity performance when the creativity task is responsive creativity compared to when the creativity task is expected creativity. We predict and find that the presence of monetary reward positively affects creativity performance when it is responsive creativity, but negatively affects creativity performance when it is expected creativity. Additionally, we find that compared to monetary reward, social-recognition reward leads to higher performance in expected creativity task but not in responsive creativity task. These results document that, when stimulating different types of creativity performance, it is important for managers to know not only whether to use reward or not, but also how the reward should be provided.