The Role Of Employee Incentives In Driving Enterprise Innovation

Abstract

In the dynamic landscape of global business, underscored by rapid technological advancements and escalating competition, this study investigates the pivotal role of financial incentives, flexible working arrangement, working environment and employee engagement in driving enterprise innovation within manufacturing enterprises in Guangzhou, China. The research aims to unravel the interplay between these variables and their collective impact on fostering a culture of innovation, with a focus on the mediating role of employee engagement. Employing a mixed-method approach that combines quantitative analysis through Structural Equation Modeling (SEM) and qualitative insights from senior personnel interviews, the study unveils that financial incentives, flexible working arrangement, and working environment contribute to enhancing enterprise innovation. Moreover, it highlights employee engagement as a crucial mediator in this process. These findings not only affirm the criticality of a holistic approach to incentivizing innovation but also extend the theoretical framework of employee motivation, engagement, and organizational innovation. By elucidating the relationships between incentives and innovation, this research offers valuable insights for practitioners aiming to cultivate innovation-centric cultures in their organizations.