BUS603: Managing People

Demands-Abilities Fit and Employee Creativity

In this study, stepwise linear regression analysis has been used to verify relevant hypotheses. Based on the procedure in stepwise linear regression analysis suggested by Baron and Kenny, the first to input into the regression equation is the control variable; the second is the variable of demands-abilities fit (this variable is a three-category variable and thus converted into two dummy variables) and multicultural experience; the third, the interaction between demands-abilities fit and multicultural experience.

Model 2 and model 3 in Table 2 reflects the impact of demands-abilities fit on employee creativity. Including only the control variable, Model 1 indicates gender and age are negatively correlated with employee creativity. In other words, women's creativity is lower than men's (B = -0.168, P < 0.05); the creativity becomes lower with age (B = -0.018, P < 0.001). With demands-abilities fit and multicultural experience added in, Model 2 shows employees whose education and skills both match the requirements of the job have lower creativity than those not (B = -0.218, P < 0.05), and the same with those either of whose education or skills match the requirements (B = -0.288, P < 0.05), which is the opposite of Hypothesis 1; Multicultural experience exerts a dramatic impact on employee creativity (B = 0.122, P < 0.05), that is, the richer the multicultural experience, the higher the employee creativity. Model 2 significantly increases the explanation of employee creativity (ΔR² = 0.021, P < 0.05).

TABLE 2. Stepwise linear regression of person-environment fit and employee creativity (N = 543).

Model 3 takes into account the interaction variable between demands-abilities fit and multicultural experience, which is highly significant, and its coefficient is positive (B = 0.236, P < 0.05). It is nevertheless implausible to verify the significance of overall interaction simply based on the significance of product term coefficient, because the overall interaction has over one degree of freedom and it depends on whether the R² variation of the main effect model (Model 2) and product term model (Model 3) is remarkable or not. The result exhibits that R² variation changes dramatically (ΔR2 = 0.009, P < 0.1). This implies that as long as an additional unit is included in multicultural experience, the average difference in creativity increases by 0.236 between employees whose education and skills match job requirements and whose education or skills match the requirements. In other words, the impact of education and skills matching with job requirements on employee creativity increases with employees' multicultural experience getting richer. Hypothesis 3 has been therefore validated.

Needs-Supplies Fit and Employee Creativity

Likewise, the stepwise linear regression analysis has been applied to validate hypotheses related to needs-supplies and employee creativity. The first to input into the regression equation is the control variable; the second is the variable of needs-supplies fit and multicultural experience; the third, the interaction between needs-supplies fit and multicultural experience.

Model 4 and model 5 in Table 2 reflects the impact of needs-supplies fit on employee creativity. With needs-supplies fit taken into consideration, Model 4 tells that the higher the needs-supplies fit, the higher the employee creativity (B = 0.1050, P < 0.05), significantly increasing the explanation of employee creativity (ΔR² = 0.011, P < 0.01). Hypothesis 2 hence has been verified.

Model 5 adds in the interaction variable between needs-supplies fit and multicultural experience. The interaction term between needs-supplies fit and multicultural experience is outstanding and its coefficient is positive, implying that as long as an additional unit is included in multicultural experience, the impact of needs-supplies fit on employee creativity increases by 0.082. In other words, the impact of needs-supplies fit on employee creativity increases with employees' multicultural experience getting richer.