Quality of performance metrics, informal peer monitoring, and goal commitment

Jacobo Gomez-Conde, Ernesto Lopez-Valeiras, Ricardo Malagueño, José Carlos Tiomatsu Oyadomari

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Abstract

We examine whether the quality of performance metrics affects informal peer monitoring and, in turn, goal commitment. By fostering performance-oriented behaviours, performance metrics drive managers to involve themselves in learning and improvement efforts, building a fertile atmosphere for informal peer monitoring. We argue that the quality of performance metrics is positively associated with direct peer monitoring and negatively linked to indirect peer monitoring. Subsequently, we postulate that direct (indirect) peer monitoring is positively (negatively) associated with goal commitment. We use partial least squares (PLS) to analyse survey data from store managers in a large retail firm. Results provide overall support for our hypotheses.

Original languageEnglish
Pages (from-to)4041-4077
Number of pages37
JournalAccounting and Finance
Volume62
Issue number3
Early online date7 Feb 2022
DOIs
Publication statusPublished - Sep 2022

Keywords

  • performance metrics
  • informal peer monitoring
  • goal commitment
  • management control
  • gossip
  • praise
  • Gossip
  • Informal peer monitoring
  • Management control
  • Performance metrics
  • Praise
  • Goal commitment

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