The impact of incentive system on employees’ entrepreneurship and innovation performance: moderating effect of locus of control

ABSTRACT

The development of new medical procedures and medical services in the environment that has been changed by COVID-19 is indispensable for the improvement of public health. This paper discusses how the concept of incentive systems and employees’ entrepreneurship can be applied to achieve innovation performance within a hospital sector in South Korea. The purpose of this study is to examine relationships among the incentive system, employees’ entrepreneurship and innovation performance. In addition, the study investigates the moderating effect of locus of control between all of model path. A confirmatory factor analysis validated the measurement model, and subsequently, a structural equation modeling tested the proposed model by using SPSS 26.0, while data were analyzed using AMOS 20.0 statistics software. The result of the paper shows the positive effects of the incentive system on employees’ entrepreneurship. Furthermore, employees’ entrepreneurship has a significant influence on the product innovation and process innovation. Finally, the moderating effect according to locus of control was partially adopted. The results of the study are expected to suggest academic and practical implications to the private hospital field. © 2021, Success Culture Press. All rights reserved.