The Impact of Transparency-Inducing Management Information System Use on Employees’ Daily Work Performance

Management information systems (MIS) are increasingly used in all types of workplaces. Although they may be introduced to enhance productivity and performance, they frequently fail to live up to these expectations in practice. In this study, we develop a theoretical model based on the theory of effective MIS use and on the transparency paradox to explain how different facets of performance transparency shape the relationship between MIS use and employee work performance. This model acknowledges that an MIS can offer varying degrees and types of transparency about performances, especially as an MIS can enable individuals to clearly understand their own metrics or allow team members to view each other’s performances. This study focuses on the conditions (i.e., self-directed and team-directed performance transparency) under which MIS use is more or less conducive to employees’ work performance. We tested our conceptual model using an experience sampling study of 1,186 daily observations of 141 employees in a sales context. The results highlight that daily MIS use positively relates to daily employee work performance. This relationship is strengthened when one’s own performance is made more transparent to oneself, whereas it is weakened when one’s performance is made more transparent among peers. The theoretical and practical implications of these findings are discussed.