Differential impact of short-term and long-term group incentives

Purpose: The purpose of this paper is to investigate the additive and differential effects of short-term-oriented group incentives (STOGIs) and long-term-oriented group incentives (LTOGIs) on psychological ownership and organizational commitment. Design/methodology/approach: This study analyzed data from 17,255 US employees in the 2005 data set of the National Bureau of Economic Research Shared Capitalism Research. Findings: Both additive indices of group incentives have direct positive relationships with psychological ownership and organizational commitment, as well as indirect positive relationships with organizational commitment through psychological ownership. STOGIs have a stronger relationship with organizational commitment and LTOGIs have a stronger relationship with psychological ownership. Originality/value: The value of this research lies in exploring the differential effects of short-and long-term group incentives, which provides new insight into the theory of group incentives and practical implications for their effective utilization.