Why Does Algorithmic Management Undermine Employee Creativity?

Abstract

With the rapid development of artificial intelligence technology, algorithmic management is increasingly prevalent in enterprises. Despite the considerable scholarly attention given to the impact of algorithmic management, a research gap remains regarding its influence on employee creativity. To address this gap, the authors developed a theoretical model using ability-motivation-opportunity (AMO) theory. This model aims to investigate the direct impacts of algorithmic management (opportunity) on employee creativity (performance) while also considering the mediating roles played by knowledge combination capability (ability) and achievement goal (motivation). Using a sample of 327 paired leader-employee data from an information technology service company, the findings reveal that algorithmic management has a negative effect on employee creativity. Furthermore, the results demonstrate that algorithmic management negatively influences employee creativity through its impact on knowledge combination capability and achievement goal.