The impact of the use of cash incentive schemes on the effectiveness of knowledge sharing with field experience.

Document Type : Original Article

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Department of Accounting Faculty Commerce Alexandria University Alexandria Egypt

Abstract

The objective of the research is to study and test the impact of financeial rewards plans, whether on the basis of individual or group performance, on the effectiveness of knowledge sharing, and to identify the most effective financial reward plan in light of both knowledge sharing strategy and the experience of individuals who share knowledge The research hypotheses were tested by conducting a field experiment on a sample of individuals in a number of industrial companies. Results suggest that the use of the individual based financial reward plan is more effective as the company adopts the codification strategy, and as the experience of the participants increase compared to using the team based financial reward plan. Contrary to the research hypothesis, individuals prefer to use the individual based financial reward plan with the personalization strategy, which can be explained by individuals in the Egyptian business environment do not prefer team based financial reward plans as they may be associated with the phenomenon of the free rider.

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