Electronic Performance Monitoring and Employee Creativity in the Digital Era: Cultural Variations in Power Distance

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ABSTRACTWith the emergence of digital technologies, electronic performance monitoring (EPM) is becoming more prevalent in the Asian workplace. However, the consensus on EPM and Asian culture has not been updated with technological advancements. This study investigates the impact of the dualistic functions of EPM on employee creativity, considering power distance within the framework of the job demands‐resources model. Based on a sample of 276 employee‐colleague dyads from a Chinese company, we found that for employees with high (vs. low) power distance orientation, the positive impact of developmental EPM on employee creativity through harmonious passion is attenuated, as the job resources provided by developmental EPM, which require autonomy from employees, are perceived as psychological burdens. Conversely, the negative impact of deterrent EPM on employee creativity through obsessive passion is amplified, as the job demands imposed by deterrent EPM are seen as duties to be adhered to. This study sheds light on the crucial role that cultural orientation plays in the effectiveness of EPM and highlights the necessity for managers to consider cultural factors when implementing EPM in the digital era.