Quality of performance metrics, informal peer monitoring, and goal commitment

We examine whether the quality of performance metrics affects informal peer monitoring and, in turn, goal commitment. By fostering performance-oriented behaviors, performance metrics drive managers to involve themselves in learning and improvement efforts, building a fertile atmosphere for informal peer monitoring. We argue that the quality of performance metrics is positively associated with direct peer monitoring and negatively linked to indirect peer monitoring. Subsequently, we postulate that direct (indirect) peer monitoring is positively (negatively) associated with goal commitment. We use PLS to analyze survey data from store managers in a large retail firm. Results provide overall support for our hypotheses