ABSTRACT

Employees’ innovative work behaviour is essential in public and private organizations. The purpose of the article was to explore differences in three managerial mechanisms argued to be important for creating conditions for innovative work behaviour. The article is among the first quantitative studies to compare the influence of incentive mechanisms on the innovative work behaviour of public and private employees. Management can apply financial, decentralization, and participative mechanisms to increase innovative work behaviour in their organizations. However, the results demonstrated that the effectiveness of these mechanisms depends on managerial traits and organizational innovative objectives. These major findings are elaborated below.