Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1010: Person-Organization Fit and Incentives: A Causal Test

Ola Andersson (), Marieke Huysentruyt (), Topi Miettinen () and Ute Stephan ()
Additional contact information
Ola Andersson: Research Institute of Industrial Economics (IFN), Postal: P.O. Box 55665, SE-102 15 Stockholm,Sweden
Marieke Huysentruyt: London School of Economics, Postal: and SITE at Stockholm School of Economics
Topi Miettinen: Hanken School of Economics at HECER, Postal: and SITE at Stockholm School of Economics
Ute Stephan: Aston Business School, Postal: Aston University

Abstract: We investigate the effects of organizational culture and personal value orientations on performance under individual and team contest incentives. We develop a model of regard for others and in-group favoritism predicting interaction effects between organizational culture and personal values in the contest games. The predictions are tested in a computerized lab experiment with exogenous control of both organizational culture and incentives. In line with our theoretical model we find that prosocial (proself) orientated subjects exert more (less) effort in team contests in the primed prosocial organizational culture condition, relative to the neutrally primed baseline condition. Further, when the prosocial organizational culture is combined with individual contest incentives, prosocial subjects no longer outperform their proself counterparts. These findings provide a first, affirmative, causal test of person-organization fit theory. They also suggest the importance of a 'triple-fit' between personal preferences, organizational culture and incentive mechanisms for prosocially orientated individuals.

Keywords: Tournaments; Organizational culture; Personal values; Person-organization fit; Teams; Economic incentives

JEL-codes: C91; D02; D23; J33; M52

40 pages, February 27, 2014

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