How relative performance information affects employee behavior: a systematic review of empirical research

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christian Schnieder
Keyword(s):  
Organizational Performance ◽  
Relative Performance ◽  
Empirical Literature ◽  
Future Research ◽  
Employee Behavior ◽  
Performance Information ◽  
Systematic Analysis ◽  
Content Type ◽  
Relative Performance Information ◽  
And Performance

PurposeThis paper provides an overview of the empirical findings on how relative performance information (RPI) affects employee behavior. Additionally, the review identifies future research opportunities based on a systematic analysis of the literature that incorporates findings across several disciplines and provides replicable, extensive coverage.Design/methodology/approachThis paper addresses a research gap via synthesis, drawing on the empirical literature identified and analyzed systematically. A conceptual framework is developed to integrate the studies.FindingsThe effect of RPI on performance through enhanced effort is positive; moreover, publicity and performance-dependent compensation strengthen the effect. However, RPI has also been found to increase sabotage among employees, and it can lead to less honest reporting. Future research could examine critical mediators and moderators of the RPI-performance relationship and thus complement the findings. Additionally, the effects of group-based RPI remain underrepresented. Future work could help to assess in greater detail how RPI interacts with culture and norms and whether RPI is due to personal expectations. There is also room for further research regarding the effects of RPI on cooperation, its consequences for learning, how it affects budgeting decisions and its implications for risk taking.Originality/valueThis paper presents the first literature review in the field of RPI. It provides synthesized knowledge about whether RPI is beneficial or detrimental to organizational performance.

Task satisfaction: the effect of relative performance information versus outcome feedback

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert Marley ◽  
Lee Kersting
Keyword(s):  
Financial Incentives ◽  
Financial Incentive ◽  
Low Cost ◽  
Relative Performance ◽  
Future Research ◽  
Performance Information ◽  
Content Type ◽  
Outcome Feedback ◽  
Relative Performance Information ◽  
Task Satisfaction

PurposeIn this empirical study, the primary aim is to examine whether the type of feedback provided, relative performance information (RPI) vs outcome, affects individual's task satisfaction in a context without financial incentives. A secondary objective is to explore whether differences in individuals' task satisfaction were associated with their performance level.Design/methodology/approachParticipants completed a mundane, effort-based task in a 1 × 2 between-subjects experimental design where the type of feedback was manipulated at two levels (RPI vs outcome).FindingsThe results revealed a positive link between providing RPI feedback to individuals and their self-reported task satisfaction compared to individuals provided with outcome feedback. We find that individuals' task satisfaction is not associated with their task performance, supporting our prediction that the level of knowledge of results affects individuals' task satisfaction.Research limitations/implicationsThe experimental task used in this study was mundane and effort intensive. Consequently, future research may be needed to examine whether the results generalize to more creative, less effort-intensive tasks. This study also utilized student participants as a proxy for employees, which is appropriate for the task, but may not generalize to organizational settings requiring specialized knowledge or task experience.Practical implicationsThe findings suggest that organizations may find providing employees with RPI to be a relatively low-cost, non-financial incentive for improving employee task satisfaction, a construct documented to reduce employee turnover and absenteeism.Originality/valueWhile prior research focuses on the effects of providing RPI on individuals' performance and effort, this study extends prior research to individuals' task satisfaction, an affective construct, illustrating that RPI is multi-dimensional. Our results also have implications for theory. We extend the feedback proposition of the widely applied Job Characteristics Model (JCM) by illustrating the type of feedback provided to individuals has task satisfaction effects beyond those associated with the mere presence of feedback.

The role of intellectual capital on process and products innovation. Empirical study in SMEs in an emerging country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicolas Salvador Beltramino ◽  
Domingo Garcia-Perez-de-Lema ◽  
Luis Enrique Valdez-Juarez
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Content Type ◽  
Industrial Companies ◽  
Emerging Country ◽  
And Performance ◽  
Practical Implications

PurposeThe objective of this study is to analyze the influence of the intellectual capital of SMEs on innovation and organizational performance in the context of an emerging country.Design/methodology/approachThe sample consisted of 259 industrial SMEs from the Cordoba, Argentina. The data were analyzed by partial least squares–structural equation modeling (PLS–SEM).FindingsThe study provides empirical evidence that the three components of intellectual capital generate positive and significant effects on innovation in processes and products. Structural capital is the component that has the greatest effect on innovation. It also showed a positive and significant relationship between innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.Research limitations/implicationsThe research exposes limitations that uncover a path for future. First, the work uses as the only source of information, the consultation at the highest level of the company. Second, the study covered only industrial companies. Future studies should focus on other sectors and countries.Practical implicationsThe results may have important practical implications for SME owners and managers and offer a vision of the influence of intellectual capital on the innovative capacity of the organization.Originality/valueThe value of work lies in establishing the importance of intellectual capital in the environment of an emerging country such as Argentina, given the low level of knowledge that exists in this area.

The structural capital, the innovation and the performance of the industrial SMES

2020 ◽  
Vol 21 (6) ◽  
pp. 913-945 ◽  
Author(s):  
Nicolás Salvador Beltramino ◽  
Domingo García-Perez-de-Lema ◽  
Luis Enrique Valdez-Juárez
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Industrial Sector ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Content Type ◽  
Structural Capital ◽  
And Performance ◽  
Practical Implications

PurposeThe objective of this study is to analyze the influence of the structural capital of SMEs in the capacity of innovation and organizational performance, in the context of an emerging country.Design/methodology/approachThe sample consisted of 259 industrial SMEs from the province of Córdoba Argentina. The data was analyzed by Partial Least Squares Structural Equation Modeling (PLS–SEM).FindingsThe study provided evidence that acquisition of information and knowledge management, organizational culture and structure, systems and processes have positive and significant effects on the innovation capacity of SMEs. Only the communication and cohesion component did not show positive and significant results on it. It also showed a positive and significant relationship between the capacity for innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.Research limitations/implicationsThe research exposes some limitations that uncover a path for the development of future lines of research. In the first place, the work focuses on the use of a single source of information, the consultation at the managerial level of the company, without considering other representative variables to measure the capacity for innovation. Second, the study covered only companies in the industrial sector and country. Future studies should focus on other sectors and countries.Practical implicationsThe results of the study can have important practical implications for the owners and managers of SMEs. The results offer a vision of the dimensions of structural capital that most influence the innovative capacity of the organization. This is especially useful given that in the context of Argentina there is a low level of knowledge and structural capital is key to being more competitive. The managers of SMEs can thus increase the innovative potential of the company and favor the acquisition of information and knowledge and improve its processes and systems to contribute to the development of innovation capabilities to make SMEs more competitive.Social implicationsThe results obtained can be useful for those responsible for making public policy decisions, since in the knowledge of the economy to maintain a developed state and nation, it is necessary to include as one of the main issues on the national agenda the improvement of intellectual capital of its people to promote the competitiveness of companies.Originality/valueThe research contributes to the development of intellectual capital literature focused on the generation of innovation and performance in the perspective of SMEs in emerging countries.

Knowledge management processes and organizational performance: the mediating role of organizational learning

2020 ◽  
Vol 24 (8) ◽  
pp. 1859-1880 ◽  
Author(s):  
María Obeso ◽  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
Ana María Serrano-Bedia
Keyword(s):  
Knowledge Management ◽  
Organizational Learning ◽  
Firm Performance ◽  
Organizational Performance ◽  
Knowledge Generation ◽  
Future Research ◽  
Content Type ◽  
Mediating Role ◽  
And Performance

Purpose The purpose of this paper is twofold. First, it aims to analyze the individual influence of different knowledge management practises (KMP) on firm performance. Second, it aims to analyze the mediating role of organizational learning (OL) between each KMP and performance. Design/methodology/approach A telephone-survey was applied in 2018 to the managers of 400 Spanish firms. The data retrieved was analyzed by using multiple regression analysis. Findings Knowledge generation (KG) and knowledge flow (KF) promote firm performance, while there is not a direct association between knowledge storage and performance. OL mediates the relationship between KG and performance, as well as between KF and performance. Research limitations/implications First, this research confirms that not all the KMP have a direct effect on firm performance, thus, future research would need to differentiate between different KMP. Second, this paper is pioneering in providing empirical evidence that OL mediates the KMP – performance relationship. Third, the empirical study was performed in a context non-researched yet by the literature considering KMP individually: Spain. Practical implications First, besides the results managers should focus their efforts in practises related to KG and application. Second, OL mediating suggests that managers should invest in managerial commitment to promote a shared culture, shared vision, open-mind to new ideas and a lot of dialogue. Originality/value This is the first study that investigates how KMP contribute to firm performance by incorporating the mediating impact of OL. The results will help organizations to identify the KMP improving the performance.

Assigned versus Chosen Relative Performance Information: The Effect of Feedback Frequency on Performance

2020 ◽  
Vol 32 (1) ◽  
pp. 137-158
Author(s):  
D. Kip Holderness ◽  
Kari Joseph Olsen ◽  
Todd A. Thornock
Keyword(s):  
Relative Performance ◽  
Data Availability ◽  
Performance Information ◽  
Short Term ◽  
Subsequent Performance ◽  
Negative Effect ◽  
Relative Performance Information ◽  
And Performance ◽  
Feedback Frequency

ABSTRACT Technological advancements have greatly improved the ability to provide relative performance information (RPI), including information systems capable of providing feedback on demand. We use an experiment to examine the effect of RPI feedback frequency on task performance when RPI is assigned by managers and when RPI is solicited by employees. When RPI is assigned to employees, we hypothesize and find a non-linear relationship between RPI frequency and performance such that an increase in frequency first increases and then decreases performance. In contrast, we hypothesize and find that when RPI is chosen by employees, the negative effect of highly frequent RPI on performance is not only mitigated, but reversed, due to individuals placing greater weight on chosen feedback than assigned feedback. We also find that when individuals choose to view RPI feedback, strategic effort (i.e., expending short-term resources for long-term benefits) mediates the relation between viewing RPI and subsequent performance. JEL Classifications: M10; M40; M41. Data Availability: Data available upon request.

Chief executive officer compensation, corporate governance and performance: evidence from KSA firms

2019 ◽  
Vol 19 (6) ◽  
pp. 1216-1235 ◽  
Author(s):  
Gaafar Abdalkrim
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Organizational Performance ◽  
Ceo Compensation ◽  
Chief Executive ◽  
Listed Companies ◽  
Future Research ◽  
Content Type ◽  
Interesting Insight ◽  
And Performance

Purpose This paper aims to examine the relation between chief executive officers (CEOs) compensation and organizational performance in KSA listed companies. It also aims at investigating the effect of corporate governance mechanisms according to this relation. Design/methodology/approach The researcher uses unbalanced panel data regression analysis on a sample of 181 KSA listed companies from 2005 to 2014. Findings The estimation result suggests that CEO Compensation is positively associated with firm performance. The results also show that corporate governance positively and significantly affect the relation between CEO Compensation and performance. Research limitations/implications This research, like any other, has some limitations that can be addressed by future research. The important limitation of this research is that the generalizability of the results is limited by the fact that the majority of the firms in the sample are from material sector which is represented by 42 (32 per cent) firms versus pharmaceutical sector which is represented by only one (1 per cent) firm. Therefore, a future research can tackle the effect of CEO compensation, corporate governance on future firm performance independently. Practical implications The findings have some important implications for stakeholders such as policymakers, listed firms managers, business owners and academic researchers in the emerging KSA market. Besides, understanding the relation between CEO compensation, corporate governance and firm performance can aid the success of corporate modernization and economic reform in KSA. Originality/value The research attempts to fill a substantial gap in the literature by providing the first rigorous econometrics evidence on CEO compensation, corporate governance and firm performance. In addition, it provides interesting insight for researches, decision-makers and board members in KSA.

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