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.