The Effect of Monetary Reward on Creativity: The Role of Motivational Orientation

Abstract

The prolonged debate on the effect of monetary reward on creative performance is still ongoing. Research has shown monetary rewards to have both positive and negative effects on creative performance. We contend that a person’s motivational orientation moderates the effect of monetary rewards on creative performance. An experiment was conducted showing that creative performance can be influenced through two distinct causal pathways. The pathways appear different for people driven predominately by extrinsic motivation and those driven predominately by intrinsic motivation. The exact role of how motivational orientation affects the relationships between monetary reward and creative performance needs further investigation. However, this study generates some insights and suggests directions for future research.