Overcoming Resistance to Improved Performance Measures

Abstract

This study examines whether managers in supervisory roles incorporate new objective performance measures to a greater extent in their subjective performance evaluations upon receiving communication from an innovation champion that supports the use of those measures. I predict that communication from an innovation champion increases managers’ trust in the value of new performance measures, an increase that is made greater when managers perceive innovation champions to be similar to themselves. I measure incorporation of new performance measures using the weight placed on said measures by managers in subjective performance evaluations. I do not find that managers incorporate new performance measures to a greater extent when exposed to communication from an innovation champion, nor do I find that innovation champion similarity increases the influence of innovation champions on the incorporation of new measures. I do, however, find that managerial trust in the value of new performance measures increases managers’ incorporation of said measures into their subjective performance evaluations. This study contributes to prior literature by providing future researchers with avenues for further exploring means of overcoming managerial resistance to new performance measures in subjective performance evaluation settings. This study also speaks to practice by emphasizing the importance of building managerial trust in the value of new performance measures when seeking to implement improved performance measurement systems.