The Effect of Incentives on Knowledge Sharing in Computer-Mediated Communication: An Experimental Investigation

Abstract

Do financial incentives increase knowledge sharing in a computermediated environment? Thirty-six accounting students assigned to groups with different financial incentives (group, piece-rate, or tournament) searched for errors in accounting-related spreadsheets, with access to an online chat room they could use for helping others. The dependent variable was the amount of knowledge the students shared with others. Quantitative and qualitative data suggest that the group financial incentives inspired more knowledge sharing than did either tournament or piece-rate. Results suggest that managers should carefully consider incentive structures in computer-based systems because incentives potentially affect knowledge sharing.