Linking Performance Measures and Feedback: Self-Regulation for Creativity

Abstract

ABSTRACT This study examines the proactive feedback effect of non-financial performance measures (NFPMs) and the passive feedback effect of financial performance measures (FPMs) on feedback-seeking behavior, perceived feedback quality, and individual creativity. Using a sample of survey data collected from middle-level managers in Australia, this study finds that managers passively receive performance information and perceive high-quality feedback when their performance is evaluated based on FPMs and that they proactively seek feedback when their performance is evaluated based on NFPMs. The results of the study also show that neither NFPMs nor FPMs are directly associated with individual creativity. However, the study finds that (1) the positive association between NFPMs and individual creativity is fully mediated by feedback-seeking behavior and perceived feedback quality together, and (2) the positive association between FPMs and individual creativity is fully mediated by perceived feedback quality alone. Further, the results indicate that feedback-seeking is not only a catalyst for perceived feedback quality but also a self-regulation strategy that facilitates individual creativity. In sum, the study offers initial empirical evidence of the passive feedback effect of FPMs and the proactive feedback effect of NFPMs on feedback and individual creativity.