Four possible rewards (or punishments) for innovation – their effect on the employee


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A manager’s attitude to innovation affects an employee’s job satisfaction, and consequently their individual performance. The authors survey employees of Indonesia Stock Exchange-listed companies. Our results confirm that individual performance depends on job satisfaction. However, job satisfaction is not fully contingent on the reward system, or the JRI, or the manager’s attitude. Performance is much affected by other factors, such as stress at work, tension at home, and unrest in the community.

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    • Figure 1. Framework of the study
    • Figure 2. Path analysis
    • Table 1. Percentage of distributed and returned questionnaires
    • Table 2. Demografic information of respondents
    • Table 3. Composite reliability, Cronbach’s alpha, AVE and R2
    • Table 4. Fornell-Larcker Correlation
    • Table 5. Measurement of structural model