A comparative analysis of financial and nonfinancial rewards on work motivation and knowledge sharing in a postpandemic era

Abstract

Purpose This paper aims to examine the impacts of financial and nonfinancial incentives on the development of employee work motivation and knowledge sharing in the postpandemic environment. The paper further investigates the role of transformational leadership as a moderator in enhancing the relationship between work motivation and knowledge sharing. Design/methodology/approach Adopting a quantitative approach, the study uses data collected from multiple informants, specifically senior managers, in Nepalese manufacturing and service business-to-business (B2B) firms. Findings Contrary to prior research, the results reveal that nonfinancial incentives have a stronger impact on work motivation in the postpandemic era. This enhanced work motivation, in turn, contributes to knowledge sharing, with transformational leadership further strengthening the relationship. Practical implications The findings suggest that B2B firms should consider moving toward leveraging nonfinancial incentives to motivate employees to develop knowledge sharing initiatives, especially in challenging circumstances such as those experienced in the postpandemic era. In addition, it is recommended that chief executive officers adopt a transformational leadership style to facilitate effective knowledge sharing within their firms. Originality/value In a developing economy and amid the challenges of the global pandemic, there has been limited research exploring the possible effects that financial and nonfinancial incentives could have on work motivation and knowledge sharing. This research bridges this gap by providing a fresh perspective on work motivation and knowledge management in B2B firms, contributing novel insights to the literature.