Extrinsic motivation as a determinant of knowledge exchange in sales teams: A social network approach

• Date: 01 July 2020
• Published date: 01 July 2020
• Author: Natalie David,Julia Brennecke,Olaf Rank
• DOI: http://doi.org/10.1002/hrm.21999

ORIGINAL ARTICLE

Extrinsic motivation as a determinant of knowledge exchange

in sales teams: A social network approach

Natalie David

1

| Julia Brennecke

2

| Olaf Rank

3

1

EM Strasbourg Business School, University of

Strasbourg, HuManiS (EA 7308), Strasbourg,

France

2

Innovation and Knowledge Management,

University of Liverpool, Liverpool, UK

3

Institute of Economics and Business

Administration, Albert-Ludwigs-University of

Freiburg, Freiburg, Germany

Correspondence

Natalie David, EM Strasbourg Business School,

University of Strasbourg, HuManiS (EA 7308),

61, avenue de la Forêt-Noire, 67 085

Strasbourg Cedex, France.

Email: natalie.david@em-strasbourg.eu

Abstract

This paper investigates extrinsic motivation as a determinant of knowledge exchange

among employees in sales teams. Applyinga social network approach, we study differ-

ent forms of knowledge-exchange behaviors from the perspective of a focal employee

and from the perspective of the dyad. From the focal employees' perspective, we dis-

entangle knowledge seeking from knowledge providing, and argue that these two

behaviors are affected differently by employees' extrinsic motivation. From the dyad

perspective, we take similarity in motivation of tied-to employees and reciprocity of

exchange ties into account. To test our hypotheses, we apply exponential random

graph models to data gathered from 138 employees in five different sales teams dis-

tributed across threecompanies in Central Europe. The resultsof our analysis from the

focal employees' perspective show that extrinsically motivated employees generally

engage in less knowledge exchange. The dyad perspective further highlights that sales

employees proceed purposefully when they exchange knowledge with coworkers.

For instance, two employees' relative levels of extrinsic motivation determine their

willingness to engage in reciprocal knowledge exchange. We discuss the implications

of our findings for research on the microfoundations of organizational knowledge

management and draw conclusions concerning HRM practices used to foster extrinsic

motivation, thereby affecting knowledge exchange.

KEYWORDS

knowledge management, motivation, social networks

1|INTRODUCTION

The cooperative exchange of work-related knowledge is an important

success factorfor employees (Minbaeva,2013; Minbaeva, Foss, & Snell,

2009), even in domains where they traditionally work autonomously,

such as sales (Auh & Menguc, 2013; Verbeke, Dietz, & Verwaal, 2011).

Firms also benefitfrom cooperative interactions among theirstaff, and,

therefore, attempt to manage knowledge and knowledge exchange to

ensure an advantage over competitors (Argote & Ingram, 2000; Grant,

1996; Jackson,Chuang, Harden, & Jiang, 2006; Kogut& Zander, 1992).

At the same time, knowledge exchange among employees is largely a

discretionaryact that can be encouraged, rather than enforced, by firm

management (A. Cabrera, Collins, & Salgado, 2006; Connelly, Zweig,

Webster, & Trougakos, 2012; C.-P. Lin, 2007a). Factors beyond man-

agement's control, such as interpersonal similarity(Kleinbaum, Stuart, &

Tushman, 2013) and tenure(Kaše, Paauwe, & Zupan, 2009), have been

shown to drive knowledge seeking and knowledge providingin organi-

zations. Recently, scholars have also begun investigating employees'

work motivation—a factor traditionally addressed by human resource

management (HRM) practices—as a determinant of knowledge-

exchange behaviors (Foss, Minbaeva, Pedersen, & Reinholt, 2009;

Kaše et al., 2009).

As this research demonstrates, understanding the factors that

influence employees' knowledge-exchange behaviors is a major con-

cern for HRM scholars and practitioners alike. Accordingly, several

studies in the HRM literature have emphasized the importance of the

DOI: 10.1002/hrm.21999

Hum Resour Manage. 2020;59:339–358. wileyonlinelibrary.com/journal/hrm © 2019 Wiley Periodicals, Inc. 339

microfoundations of knowledge exchange and its link to HRM prac-

tices (Jackson et al., 2006; Minbaeva, 2013; Swart & Kinnie, 2013).

Explorations of the micro-level mechanisms that explain employees'

engagement in knowledge exchange with their coworkers help

uncover HRM practices and incentive structures that can be put in

place to encourage favorable behavior and build a competitive and

responsive workforce.

In this study, we contribute to these efforts by investigating

extrinsic work motivation as a determinant of employees' knowledge-

exchange behaviors. Work motivation, which is generally differenti-

ated into intrinsic and extrinsic motivation (Ryan & Deci, 2000), has

been widely acknowledged as a main driver of employees' general

conduct in organizations. It has also been recognized as determinant

of knowledge-exchange behaviors (Foss et al., 2009; Gagné, 2009;

Minbaeva, 2013). While intrinsic motivation is directed toward an

activity—the individual draws enjoyment and satisfaction from his or

her performance—extrinsic motivation is caused by external factors

related to the activity (e.g., rewards or the threat of punishment)

(Ryan & Deci, 2000). In relation to knowledge exchange, the role of

intrinsic motivation is emphasized by previous studies arguing that it

inherently fosters knowledge exchange in the organizational context

(A. Cabrera et al., 2006; Gagné, 2009; Reinholt, Pedersen, & Foss,

2011). In contrast, the effects of extrinsic motivation on knowledge

exchange are less clear. Studies to date offer evidence of positive

(Burgess, 2005), negative (Bock, Zmud, Kim, & Lee, 2005), and insig-

nificant (H.-F. Lin, 2007b) effects of extrinsic motivation on different

types of knowledge-exchange behaviors. In line with these conflicting

findings, scholars point to a tension between employees' pursuit of

individual goals fueled by extrinsic motivation and their engagement

in cooperative behavior, such as knowledge exchange, in the interest

of their team and the organization as a whole (Swart & Kinnie, 2013).

In order to provide clarification, we approach this tension in the

context of sales, where it is particularly salient. In the sales function,

HRM practices and incentives, such as variable pay and premiums for

performance, are often used to enhance employees' extrinsic motiva-

tion and, thereby, increase individual performance (Miao & Evans,

2007). At the same time, the increasing importance of knowledge,

knowledge exchange, and collaboration for sales performance has

been acknowledged (Auh & Menguc, 2013; Dixon, Gassenheimer, &

Barr, 2003; Mulki, Jaramillo, & Marshall, 2007). Previous studies have

examined knowledge exchange of sales employees with coworkers

from other functions within the organization, such as marketing, and

with external actors, such as customers (Bradford et al., 2010;

Üstüner & Godes, 2006; Üstüner & Iacobucci, 2012). Despite calls for

an extension of this line of research (Verbeke et al., 2011; Yilmaz &

Hunt, 2001), the exchange of work-related knowledge among

employees within sales teams has not received much attention. In this

study, we consider sales teams as an important context in which indi-

vidual employees can benefit and learn from the experience of

coworkers in similar roles, as they can gain knowledge directly related

to their own work.

We use a network approach to analyze sales employees' engage-

ment in knowledge exchange with other sales employees. This

approach allows us to investigate individual employees and their incli-

nation to exchange knowledge depending on their extrinsic motivation.

It also enables us to account for how employees exchange knowledge

and with whom, and thereby analyze distinct exchange behaviors. For

the empirical analysis, we apply exponential random graph models

(ERGMs) to data on the networks and motivational orientations of

138 sales employees belonging to five sales teams. ERGMs are a

sophisticatedstatistical method that allows us to identify the drivers of

tie formation and social network structures (Goodreau, Kitts, & Morris,

2009; Lusher & Robins, 2012; Snijders, Pattison, Robins, & Handcock,

2006). They are particularly appropriate for our study, as they enable

us to translate our network approach to examining the influence of

extrinsic motivation on knowledge exchangeinto an appropriate statis-

tical representation. More specifically, they allow us to investigate

extrinsic motivation as a driver of knowledge-seeking and knowledge-

providing tiesfrom the perspective of the focal employee and the dyad

at the same time, while controlling fornetwork self-organization mech-

anisms that have repeatedly been shown to influence knowledge-

exchangebehaviors (Brennecke & Rank, 2017;Lomi, Lusher, Pattison, &

Robins, 2014).Consequently, we are ableto paint a comprehensive pic-

ture of distinctknowledge-exchange behaviorsby, for instance, explor-

ing the relationship between extrinsic motivation and employees'

propensities to engage in reciprocal exchange. By applying a network

approach, we respond to a recent call by Tasselli, Kilduff and Menges

(2015, p. 1376) who note “therelative absence of research on whether

people withdifferent motivations enact different types of networks.”

We contribute to the HRM literature by uncovering mechanisms

that link extrinsic motivation, which is typically steered by HRM prac-

tices (e.g., incentives), to employees' knowledge-exchange behaviors.

In so doing, we follow several recent calls for research in this domain,

especially requests to investigate the microfoundations of knowledge-

related processes and practices in organizations (Felin, Zenger, &

Tomsik, 2009; Minbaeva, 2013; Minbaeva et al., 2009). The results of

our study reveal distinct behavioral patterns exhibited by extrinsically

motivated employees with regard to their knowledge exchange with

coworkers. These results further our understanding of how individual

goal setting and the use of HRM practices and incentives affect coop-

erative behaviors among employees.

Applying ERGMs to investigate the link between extrinsic motiva-

tion and knowledge exchange, we also make a methodological contri-

bution to the HRM literature. We follow repeated calls (Kaše et al.,

2009; Kaše, King, & Minbaeva, 2013) and demonstrate the potential

of this relatively novel network modeling approach to answer research

questions of substantial interest for the HRM community.

Finally, we advance the state of knowledge about the conse-

quences of motivational orientations for individuals' cooperative

behaviors in organizational settings. In extending previous research,

we not only establish extrinsic motivation as important determinant

of knowledge exchange but also provide in-depth insights into how

extrinsic motivation gives rise to distinct exchange behaviors. Our

findings provide valuable insights for HRM practitioners and sales

managers with regard to the possible effects of incentive policies that

target the extrinsic motivation of sales employees.

340 DAVID ET AL.