Can Technology-Enabled Advanced Monitoring Systems Influence Individual Performance and Team Dynamics

Recent advancements in technology have resulted in more sophisticated employee monitoring systems. We study the impact of a technology-enabled advanced monitoring system deployed by the National Basketball Association and explore whether it serves a decision-facilitating role and/or a decision-influencing role at the individual-level. We find that the system impacts players’ playing strategy (i.e., a decision-facilitating role), but not their effort (i.e., a decision-influencing role). The impact on playing strategy increases average individual performance across the entire sample. We also find that the effect is somewhat greater for low-ability individuals in the first year of implementation. At the team-level, we find that system adoption is associated with a smaller dispersion of effort and a greater degree of specialization among individuals in a team. Our study has implications for the use of technology-enabled advanced monitoring systems in a range of industries