Reluctant to change: Self-enhancing responses to diverging performance measures

Although there is extensive evidence that past performance influences the propensity to make changes, research on how decision makers respond to diverging performance measures has been sparse. This paper addresses this gap in an experimental and a field study in which we examine how decision makers respond to the ambiguity introduced by two diverging performance indicators of unequal importance. Both studies suggest that decision makers respond to diverging performance indicators in a self-enhancing manner. Decision makers gave importance to a secondary performance indicator only when it helped them maintain a sense of positive performance, that is, when a secondary performance measure was high and a primary performance measure was low. The results suggest that, in contexts in which decision makers are likely to experience diverging performance indicators, perceptions of success and the associated reluctance to make changes might be more pervasive than is often thought. (c) 2006 Elsevier Inc. All rights reserved.