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Lookup NU author(s): Dr Lana LiuORCiD
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Drawing on social comparison theory, we conduct an experiment to examine the impact of employee friendship on the incentive effectiveness of relative performance feedback. We also analyze the mediating role of employees’ social comparison behavior in this context. Overall, we find that employee friendships enhance the incentive effectiveness of relative performance feedback, but the extent of this impact varies depending on the valence of the feedback. Specifically, when employees receive negative feedback, friendships significantly improve performance, with social comparison behavior fully mediating this effect. However, when employees receive positive feedback, although friendships significantly increase social comparison behavior, the impact on performance is not significant due to a ‘ceiling effect.’ Our study addresses a gap in the research on the social aspects of relative performance feedback, offering practical insights for management control systems in organizations.
Author(s): Zhou N, Miao X, Wang Y, Liu LYJ
Publication type: Conference Proceedings (inc. Abstract)
Publication status: Published
Conference Name: Annual Congress of Management Accounting Research, Accounting Society of China, 2024
Year of Conference: 2024
Acceptance date: 31/10/2024
Notes: This paper has been awarded Best Paper by the conference committee.
