Group Identity, Performance Transparency, and Employee Performance

Ruidi Shang, Margaret A. Abernethy, and Chung-Yu Hung (2019) Group Identity, Performance Transparency, and Employee Performance. The Accounting Review In-Press.

53 Pages Posted: 23 Dec 2019

See all articles by Ruidi Shang

Ruidi Shang

Tilburg University - Tilburg School of Economics and Management

Margaret A. Abernethy

University of Melbourne, Department of Accounting

Chung-Yu Hung

University of Melbourne, Department of Accounting

Date Written: October 22, 2019

Abstract

Economics, social psychology, and management studies suggest that group identity plays an important role in directing employee behaviors. On the one hand, strong group identity could motivate high effort by resolving conflicts of interests in the workplace. On the other hand, it could encourage conformity towards group norms. We examine whether the effect of group identity is conditional on managers’ performance reporting choices. Drawing on survey and archival data from a field site, we find that when performance transparency is low, the interest alignment effect is more salient and group identity positively relates to employee performance. However, when performance transparency is high, the conformity effect is more salient and higher group identity is associated with more homogeneous, but not necessarily higher, employee performance. Our findings contribute to the management control literature by documenting that managers’ performance reporting choices determine whether group identity has positive effects on employee performance.

Keywords: Employee Performance, Group Identity, Performance Transparency, Management Control, Management Accounting

Suggested Citation

Shang, Ruidi and Abernethy, Margaret A. and Hung, Chung-Yu, Group Identity, Performance Transparency, and Employee Performance (October 22, 2019). Ruidi Shang, Margaret A. Abernethy, and Chung-Yu Hung (2019) Group Identity, Performance Transparency, and Employee Performance. The Accounting Review In-Press., Available at SSRN: https://ssrn.com/abstract=3492525

Ruidi Shang (Contact Author)

Tilburg University - Tilburg School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Margaret A. Abernethy

University of Melbourne, Department of Accounting ( email )

Victoria
Melbourne, Victoria 3010 3010
Australia
+61 3 8344 7655 (Phone)
+61 3 9349 2397 (Fax)

Chung-Yu Hung

University of Melbourne, Department of Accounting ( email )

198 Berkeley Street
Melbourne, Victoria 3053
Australia

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