The Effect of Relative Performance Information Type on Creative Problem-Solving

34 Pages Posted: 9 Jan 2018

See all articles by Leslie Berger

Leslie Berger

Wilfrid Laurier University - School of Business & Economics

Kun Huo

University of Western Ontario - Richard Ivey School of Business

Date Written: December 1, 2017

Abstract

Innovation requires creative problem-solving which takes a never-before noticed feature of the problem and then build a solution based on that feature. While prior research has focused primarily on the effect of relative performance information (RPI) in a setting where performance could be improved by an increase in task related effort, it remains unclear how RPI affects performance in a setting where creative problem-solving skills, not greater effort, are required to improve performance. In this study we investigate how feedback type (full or partial RPI) affect performance in a setting where task performance is improved by identifying important but obscure features in problems. We find evidence that non-top performers perform better when provided partial RPI feedback than when provided full RPI feedback, but only when the individuals reside in larger groups which afford the ability to ‘hide in the crowd’. The results differ for top performers who are not affected by the form of RPI feedback.

Keywords: relative performance information, creative problem-solving, innovation

Suggested Citation

Berger, Leslie and Huo, Kun, The Effect of Relative Performance Information Type on Creative Problem-Solving (December 1, 2017). 2018 Canadian Academic Accounting Association (CAAA) Annual Conference. Available at SSRN: https://ssrn.com/abstract=3099053 or http://dx.doi.org/10.2139/ssrn.3099053

Leslie Berger

Wilfrid Laurier University - School of Business & Economics ( email )

Waterloo, Ontario N2L 3C5
CANADA

Kun Huo (Contact Author)

University of Western Ontario - Richard Ivey School of Business ( email )

1151 Richmond Street North
London, Ontario N6A 3K7
Canada

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