Both practitioners and researchers recognize the increasing importance of knowledge sharing in organizations (Bock, Zmud, Kim, & Lee, 2005; Vera-Muz, Ho, & Chow, 2006). Knowledge sharing influences a firm\u27s knowledge creation, organizational learning, performance achievement, growth, and competitive advantage (Bartol & Srivastava, 2002; Bock & Kim, 2002; Vera-Muz et al., 2006). However, an individual\u27s natural tendency is to hoard knowledge rather than to share knowledge (Davenport, 1997; Ruggles, 1998). So, how can knowledge sharing be encouraged?
Extrinsic rewards are believed to effectively motivate desired behaviors (Bartol & Locke, 2000). Under certain environmental conditions, extrinsic rewards are also believed to develop a more sustained motivation, called self-determined motivation, for these behaviors (Deci & Ryan, 1991). These ideas raise the following questions: (a) Do extrinsic rewards motivate students to share knowledge? and (b) How can universities encourage individuals to develop the self-determined motivation to take part in desired behaviors such as knowledge sharing?
This study investigates the effect of extrinsic rewards on knowledge sharing in a team setting. It also examines whether universities can facilitate individuals\u27 continued or self-determined motivation to share knowledge using certain environmental conditions. To examine these questions, I perform an experiment with 113 undergraduate students from accounting and management classes who are working on team projects. Results suggest that specifically rewarding knowledge sharing can increase individuals\u27 knowledge-sharing behaviors and, in the right environment, their internalization of the motivation to share knowledge
