Conflict management style profiles moderate the impact of perceived pay-for-performance on innovative behavior

Purpose Research has not yet reached a consensus on whether pay-for-performance (PFP) promotes innovative behavior. The purpose of this study is to identify distinct profiles (subgroups) of individual conflict management styles (CMSs) and to explore how these varying CMS subgroups influence the relationship between perceived PFP and innovative behavior. Design/methodology/approach Based on a person-centered approach, this paper conducted two exploratory empirical studies. Study 1 used latent profile analysis with 523 multisource samples from enterprises in eastern China to identify CMS profiles. Study 2 replicated the profiles configured in Study 1 with 510 non-multisource samples from enterprises in western China and tested the moderating effects of CMS profiles on the relation of perceived PFP to innovative behavior by constructing mixture models. Findings The results of this study show that there are three CMS profiles distinct in shape, namely, cooperation-dominant, competition-avoidance and cooperation-avoidance and that CMS profiles significantly moderate the relationship between perceived PFP and innovative behavior. Specifically, perceived PFP positively influences innovative behavior in the cooperation-dominant and cooperation-avoidance profiles and negatively influences innovative behavior in the competition-avoidance profile. Originality/value This study addresses the limitations of the traditional variable-centered approach, offering novel insights for CMS research. Moreover, by integrating compensation-activation theory with cooperation and competition theory, this study highlights the importance of considering person-based differences in CMSs to understand how perceived PFP affects innovative behavior, thus expanding research on the relationship between PFP and innovative behavior.