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SCIENCE ARTICLE
Bridging the gap in reward management:
development and validation
of a conceptual framework for employee expectations
of extrinsic rewards
1
School of Distance Education, Universiti Sains Malaysia, Malaysia
Submission date: 2026-01-30
Final revision date: 2026-04-17
Acceptance date: 2026-04-24
Online publication date: 2026-05-16
Publication date: 2026-05-09
Corresponding author
Management 2026;(1):442-469
KEYWORDS
Scale DevelopmentExtrinsic RewardsEmployee ExpectationsReward ManagementExpectation-Disconfirmation Theory
JEL CLASSIFICATION CODES
J33
M52
J28
TOPICS
ABSTRACT
Research background and purpose:
To develop and empirically validate a conceptual framework for extrinsic rewards to map employees’ expectations, enabling employers to understand reward preferences and design effective extrinsic rewards.
Design/methodology/approach:
This study adopts a two-phase approach. Phase 1: Framework development based on expectation-disconfirmation theory, integrating six extrinsic reward types with flexibility as a moderator. Content validity was established through an expert panel (N=6; S-CVI=0.976). The empirical validation used cross-sectional survey data from 294 employees in the UAE and Bahrain, analyzed via PLS-SEM.
Findings:
The framework showed robust psychometric properties: convergent validity (all loadings >0.77, AVE >0.65, and Cronbach's α >0.84), discriminant validity (HTMT <0.85), and strong predictive power (R²=0.629, Q²=0.476).
Value added and limitations:
This is the first empirically validated framework that directly evaluates a priori expectations rather than post-hoc satisfaction, closing a critical gap in rewards management. The designed questionnaire serves as a standardized tool adaptable to diverse organizational contexts for researchers and practitioners.
To develop and empirically validate a conceptual framework for extrinsic rewards to map employees’ expectations, enabling employers to understand reward preferences and design effective extrinsic rewards.
Design/methodology/approach:
This study adopts a two-phase approach. Phase 1: Framework development based on expectation-disconfirmation theory, integrating six extrinsic reward types with flexibility as a moderator. Content validity was established through an expert panel (N=6; S-CVI=0.976). The empirical validation used cross-sectional survey data from 294 employees in the UAE and Bahrain, analyzed via PLS-SEM.
Findings:
The framework showed robust psychometric properties: convergent validity (all loadings >0.77, AVE >0.65, and Cronbach's α >0.84), discriminant validity (HTMT <0.85), and strong predictive power (R²=0.629, Q²=0.476).
Value added and limitations:
This is the first empirically validated framework that directly evaluates a priori expectations rather than post-hoc satisfaction, closing a critical gap in rewards management. The designed questionnaire serves as a standardized tool adaptable to diverse organizational contexts for researchers and practitioners.
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| eISSN: | 2299-193X |
| ISSN: | 1429-9321 (1997-2019) |
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