Using stress and resource theories to examine the incentive effects of a performance-based extrinsic reward

We expected a positive boosting effect of a performance-based extrinsic reward on motivation and performance for those with higher control-related resources (i.e., perceived task control and trait self-control) and a positive compensating effect for those who lacked these resources. Study 1 supported compensation. Those with lower resources experienced a beneficial effect of reward on motivation and performance (i.e., compared to no reward). In Study 2, coping was examined as a mechanism. Again, reward compensated for lower resources, enhancing motivation, and performance due to enhanced coping. For those with higher resources, reward boosted motivation and performance due to coping. Thus, the interactive effects of reward and resources are paradoxical: higher resources can maximize the utility of a reward, but reward can also compensate for low resources.