Performance evaluation and creativity: Balancing originality and usefulness

Andreas Ostermaier and Matthias Uhl

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2020, vol. 86, issue C

Abstract: Innovation requires creative ideas, which are both original and useful. Usefulness is crucial for ideas to be implemented and turn into innovation. We examine how performance evaluation helps balance both dimensions. In a laboratory experiment, creators generate words, which users and jurors rate for creativity. Users use the words to write texts, whereas jurors do not use them. Creators’ pay depends either on user or juror ratings. Creators take their evaluators’ perspective and accommodate their preferences. Our findings highlight the instrumental role of the evaluator in motivating creativity. It suggests that firms involve users in performance evaluation to facilitate innovation.

Keywords: Creativity; innovation; performance evaluation; perspective-taking theory (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:86:y:2020:i:c:s2214804319303581

DOI: 10.1016/j.socec.2020.101552

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