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This paper examines the optimal incentive scheme in motivating people to innovate under ambiguity. When an innovation's prospects are ambiguous, the use of extrinsic, high-powered incentives can lead the agent's beliefs about the project's outcome to deviate from that of the principal's, which...
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The literature supports the view that the employees, who are empowered, self-determined and intrinsically motivated, have a greater degree of innovativeness. However, there is a gap between theoretical issues and practical recommendations regarding the organizational design aimed at...
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