The Effects of Relative Performance Information and Transparency on Knowledge Sharing and Productive Effort

Abstract

Using a real-effort experiment, we investigate individuals’ simultaneous decisions regarding how much effort to exert and how to allocate this effort when working on a productive task (productive effort) and sharing knowledge (knowledge-sharing effort). Specifically, we examine the effects of relative performance information (RPI) and the transparency of individual knowledge-sharing decisions (transparency). We find that RPI increases productive effort but reduces knowledge-sharing effort over time. In contrast, transparency does not influence productive effort but increases knowledge-sharing effort. Furthermore, the results indicate that transparency can counteract the adverse effect of RPI on knowledge-sharing effort over time without impeding productive effort. We link our results to the psychological concepts of social comparison, impression management, and reciprocity. Implications for research and practice are discussed.