Strategic Investments under Earnings Pressure: The Role of Performance Feedback

2013 ◽  
Vol 2013 (1) ◽  
pp. 13164
Author(s):  
Yu Zhang ◽  
Yan Gong
Keyword(s):  
Performance Feedback ◽  
Strategic Investments

PERFORMANCE FEEDBACK EFFECTS IN TRAINING: THE ROLE OF PERCEIVED CONTROLLABILITY

1994 ◽  
Vol 47 (2) ◽  
pp. 357-373 ◽  
Author(s):  
JOSEPH J. MARTOCCHIO ◽  
JAMES DULEBOHN
Keyword(s):  
Performance Feedback ◽  
Feedback Effects

scholarly journals How Does Entrepreneurial Orientation Influence the Sustainable Growth of SMEs? The Role of Relative Performance

2019 ◽  
Vol 11 (19) ◽  
pp. 5178 ◽  
Author(s):  
Chiho Ok ◽  
He Soung Ahn
Keyword(s):  
Boundary Condition ◽  
Performance Feedback ◽  
Entrepreneurial Orientation ◽  
Firm Growth ◽  
Growth Patterns ◽  
Sustainable Growth ◽  
Relative Performance ◽  
Past Performance ◽  
The Relationship

The answer to the question, “Which factors determine the sustainable growth of small- and medium-sized enterprises (SMEs)?” is still fragmented. While previous studies have paid attention to a firm’s entrepreneurial orientation (EO) as a key driver of SME growth, it is often overlooked that contextual factors can be crucial in order for EO to be effective in yielding sustainable growth in SMEs. This paper focuses on the role of relative performance as a boundary condition in the relationship between EO and sustainable growth of SMEs. We predict that the effect of EO on SMEs’ sustainable growth would differ depending on performance feedback based on their past performance. Our empirical analysis based on panel analysis shows that SMEs strongly pursue sales growth immediately after they achieve lower levels of performance than historical aspiration. However, when their performance goes beyond the historical aspiration level, their growth patterns appear to show a different pattern depending on their level of EO. SMEs with greater EO are more likely to pursue firm growth when performance is above historical aspirations while those with lesser EO are not. Our findings suggest that relative performance is an important boundary condition in the relationship between EO and SMEs’ sustainable growth.

Performance feedback and organizational learning: the role of regulatory focus

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shinhye Ahn ◽  
Cecile K. Cho ◽  
Theresa S. Cho
Keyword(s):  
Organizational Learning ◽  
Performance Feedback ◽  
Learning Process ◽  
Regulatory Focus ◽  
Strategic Change ◽  
Managerial Compensation ◽  
Strategic Decisions ◽  
Content Type ◽  
Top Managers

PurposeThis study investigates how a firm's regulatory focus (i.e. promotion and prevention foci) affects growth- and efficiency-oriented strategic change, highlighting the role of organizational-level regulatory focus as a cognitive frame within which to interpret performance feedback and its subsequent effects on strategic decisions.Design/methodology/approachThe authors collected longitudinal data on 98 S&P 500 manufacturing firms for a seven-year period. The panel data, which includes texts from the firms' 10-K filings, were then analyzed using a feasible generalized least squares (FGLS) regression estimator to test the authors’ hypotheses.FindingsA firm's strategic change orientation is affected by its regulatory focus and performance feedback: a promotion focus increases the magnitude of growth-oriented strategic change, while a prevention focus favors efficiency-oriented strategic change. Furthermore, both foci moderate the effect of performance feedback on the strategic change orientation: under negative performance feedback, a promotion (prevention) focus increases (decreases) the magnitude of growth-oriented strategic change relative to that of efficiency-oriented change. The findings provide robust evidence that regulatory focus can influence how organizations learn from feedback and formulate strategic change.Research limitations/implicationsThe authors’ examination of regulatory focus and organizational learning process relied on large manufacturing firms in the USA. However, learning process could be quite different in small and/or young firms. Future work should expand to a wider range of organizational types, such as nascent entrepreneurial ventures. In addition, the authors’ measurement of regulatory focus using corporate text has inherent weakness and could be supplemented with alternative research methods, such as surveys, interviews or experiments. All in all, however, the findings of this study offer a novel behavioral perspective while demonstrating that a regulatory focus is an important antecedent of organizational learning.Practical implicationsThis study highlights the importance of motivational characteristics of the top managers in the process of organizational learning from performance feedback. Furthermore, recruitment of a new top manager should be aligned with the organizational context, values and goals. In addition, corporate governance systems such as managerial compensation schemes need to be carefully designed so as to maximize organizational resilience, especially in the context of performance downturn or environmental change. Establishing a constructive organizational culture so that strategic decisions are not overly swayed by the performance outcomes would also be crucial to the organizational learning process.Social implicationsThis study highlights the importance of understanding the motivational orientations of top managers in organizational learning. In terms of managerial compensation, for instance, an optimal incentive system should reflect the desired performance output by encouraging managerial behavior that corresponds to its objective. Furthermore, motivational orientation of new recruits should be considered in the context of the composition of the top management team members in order to achieve “optimal fit.” In addition, this study suggests that top executives' regulatory focus can be a key factor for organizations in balancing goals of different value orientations.Originality/valueThe findings of this study demonstrated that a firm-level regulatory focus has a significant effect on organizational learning and strategic change following performance feedback. The authors hope this study provides an impetus for future discussions on the microcognitive mechanisms of organizational learning by exploring the relations between organizations' regulatory foci, performance feedback and strategic change orientations.

scholarly journals The role of performance feedback consistency in aspiration level adaptation: Evidence from a European grocery retailer

2019 ◽  
Vol 45 (1) ◽  
pp. 18-29
Author(s):  
Burak Cem Konduk
Keyword(s):  
Performance Feedback ◽  
High Performance ◽  
Past Research ◽  
Aspiration Level ◽  
Performance Targets ◽  
Aspiration Levels ◽  
Organizational Attention ◽  
And Performance ◽  
The Impact

This study investigates whether and how the impact of drivers of aspiration levels changes across the cases of consistent and inconsistent performance feedback within the context of a retailer. Analysis of internal corporate data shows that while past aspiration level and performance–aspiration gap positively influence the current aspiration level in the case of inconsistent feedback, performance feedback consistency changes only the impact of performance relative to peers. This study replicates past research in a different industry and country due to limited empirical evidence, introduces real-world complexity into aspiration theory, pinpoints performance–aspiration gap as the primary performance feedback, introduces a new sign for the impact of performance relative to peers, and reconciles its previously detected mixed impact. The findings suggest that organizational attention has an inward focus in the case of inconsistent feedback. The results also point out that leaders can trigger change through a performance outcome that lags behind the corresponding aspiration level rather than the performance of peers and eventually move their organizations toward high performance targets by starting with feasible rather than stretch goals.

Role of Self-Concept of Academic Attainment in Achievement-Related Behaviors

1986 ◽  
Vol 58 (1) ◽  
pp. 151-159 ◽  
Author(s):  
Robert M. Midkiff ◽  
Joy Patricia Burke ◽  
Jeanne P. Hunt ◽  
Geraldine Cain Ellison
Keyword(s):  
Academic Achievement ◽  
Performance Feedback ◽  
Self Concept ◽  
Academic Attainment ◽  
Performance Outcome ◽  
Academic Task ◽  
Eighth Grade Students ◽  
And Performance ◽  
Expectancy For Success

Researchers have reported that self-concept serves both as an antecedent and consequence of behavior. Given self-concept's role in achievement-related behavior, we sought clarification of factors influencing children's self-concepts of academic attainment. We examined proposed linkages among self-concept of academic attainment, academic achievement, expectancy for success, and performance outcome within a causal model using path analysis. Subjects were 208 eighth-grade students. Initial self-concept of academic attainment and initial expectancy for success were measured. Students then were given an academic task followed by performance feedback. We subsequently measured postperformance expectancy for success and postperformance self-concept of academic attainment. Students' postperformance self-concepts of academic attainment were influenced primarily by their initial self-concepts of academic attainment and, to a lesser extent, by their academic achievement and performance on an academic task.

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