The Effect of Extrinsic Rewards on Employee Creativity: The Sequential Mediating Role of Perceived Organizational Support and Work Engagement Among Startup Employees in Indonesia
DOI:
https://doi.org/10.59890/ijefbs.v4i4.17Keywords:
Extrinsic rewards, perceived organizational support, work engagement, employee creativity, startup companiesAbstract
Fostering employee creativity is pivotal for driving organizational innovation and competitive advantage, especially within the dynamic startup sector. This study explores the direct impact of extrinsic rewards on staff creativity, alongside the serial mediating mechanisms of perceived organizational support (POS) and work engagement. Employing a quantitative explanatory design, primary data were gathered via a survey involving 160 startup employees in Greater Jakarta selected through purposive sampling. The hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The empirical findings reveal that extrinsic rewards significantly augment employee creativity, with POS and work engagement functioning as crucial sequential mediators. Consequently, these results underscore the imperative role of well-structured reward systems and organizational backing in cultivating workforce engagement and creative performance in startup environments.
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