Exploring the signaling function of idiosyncratic deals and their interaction

• We study the signaling function of i-deals and their interaction in three studies.
• Task i-deals, independently and jointly with financial i-deals, predict OCB.
• These relationships are mediated by competence need satisfaction.
• The competence-signaling function operates even after including LMX, OBSE, and POS.
• Financial i-deals facilitate OCB, but not through competence need satisfaction.

By adopting signaling theory as the overarching framework and integrating self-determination theory, we examined the signaling function of task i-deals, financial i-deals, and their interaction. Across three studies with varying measures, we found that task i-deals, independently and jointly with financial i-deals, conveyed a positive message regarding competence in that they were positively related to recipients’ competence need satisfaction. In turn, competence need satisfaction positively related to organizational citizenship behaviors. The competence-signaling function of task i-deals and task-financial i-deals interaction remained significant even after accounting for leader–member exchange, organization-based self-esteem, and perceived organizational support. Financial i-deals, however, did not exhibit a competence-signaling function. The current research sheds light on the signaling function of i-deals and their interaction, and provides guidance on the practice of granting one or multiple types of i-deals.