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Purpose – This study aims to investigate the cross-level impact of different team compensation distributions on team members’ innovative work behaviors in innovative teams in Chinese manufacturing enterprises, as well as whether team task interdependence has a cross-level moderating effect.
Theoretical framework – Cognitive choice theory and the theory of planned behavior are used to elucidate the relationship between team compensation distribution and team members’ innovative intentions, as well as the relationship between team members’ innovative work behaviors.
Design/methodology/approach – The hypotheses are tested using multilevel structural equation modeling (MSEM) with 328 pairs of matched two-stage, two-party data from 12 manufacturing companies in China.
Findings – The results show that team-based reward allocation is positively related to employees’ innovative behavior by promoting employees’ innovative intention. Task interdependence weakened the direct effect of team-based reward allocation on employees’ innovative intention and the indirect effect on employees’ innovative behavior.
Practical & social implications of research – This study reveals that differences in team compensation distribution are one of the important factors affecting team members’ innovative behavior. Researchers and managers should consider the degree of interdependence of the tasks undertaken by the team before implementing a particular distribution method.
Originality/value – This study provides the first empirical results on how team-based reward allocation affects employees’ innovative behavior and examines the mechanisms and pathways of the variables involved in the context of Chinese manufacturing enterprises, contributing to filling a gap in the field of research on team compensation affecting employee innovation and extending cross-level research on team reward allocation.
