Using Stretch Goals for Idea Generation Among Employees: One Size Does Not Fit All!

Saeedeh Ahmadi (), Justin J. P. Jansen () and J. P. Eggers ()
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Saeedeh Ahmadi: Amsterdam Business School, University of Amsterdam, 1018 TV Amsterdam, Netherlands
Justin J. P. Jansen: Rotterdam School of Management, Erasmus University Rotterdam, 3062 PA Rotterdam, Netherlands
J. P. Eggers: Stern School of Business, New York University, New York, New York 10012

Organization Science, 2022, vol. 33, issue 2, 671-687

Abstract: This study explores heterogeneity in the efficacy of stretch goals for engaging employees in innovation, as stretch goals may both boost norm-breaking creativity and hamper fruitful ideation by overwhelming employees. Through a multilevel perspective, we demonstrate that stretch goals motivate more capable employees (successful, experienced, senior) to submit useful innovative ideas by combining the motivation of stretch goals with these employees' ability to discern fruitful from futile ideas. Other employees, meanwhile, may “spin their wheels” and submit lower-quality ideas based on their inability to apply useful knowledge. Empirically, we leverage idea generation data from a Fortune 500 firm. We contribute to stretch goals research by demonstrating both the intended and the unintended consequences that shape employee behavior and to the innovation literature by articulating when stretch goals can and cannot motivate valuable innovation from employees.

Keywords: employee innovation; idea generation; motivation; stretch goal; hierarchy (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:33:y:2022:i:2:p:671-687

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