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Quality of performance metrics, informal peer monitoring and goal commitment

Author

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  • Jacobo Gomez‐Conde
  • Ernesto Lopez‐Valeiras
  • Ricardo Malagueño
  • José Carlos Tiomatsu Oyadomari

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.

Suggested Citation

  • Jacobo Gomez‐Conde & Ernesto Lopez‐Valeiras & Ricardo Malagueño & José Carlos Tiomatsu Oyadomari, 2022. "Quality of performance metrics, informal peer monitoring and goal commitment," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 4041-4077, September.
    • Handle: RePEc:bla:acctfi:v:62:y:2022:i:3:p:4041-4077
    DOI: 10.1111/acfi.12915
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