Performance feedback and firms’ strategic actions: a cross-national meta-analysis

Abstract

Purpose

Although previous research has investigated how performance feedback may affect firms’ strategic actions, their findings has been inconsistent. The relationship between performance feedback and firms’ strategic activities thus appears complex. Moreover, the authors contend that it may vary with the measurement strategies employed (i.e. social or historical feedback, operationalizations of strategic actions or accounting- and market-based performance indicators) and the national contexts.

Design/methodology/approach

Therefore, the current article presents a comprehensive meta-analysis of prior research, including 1,637,817 sample observations from 101 studies that span more than 18 countries.

Findings

The results indicate that (1) performance that are below or above aspirational levels generally has a positive relationship with firms’ strategic actions; (2) these relationships are contingent on the implementation forms taken by the key variables, such as performance feedback, strategic actions and performance indicators; and (3) the relationships are much stronger in countries where managerial discretion is greater.

Originality/value

The findings contribute to the clarification of long-standing theoretical and empirical debates regarding the relationship between performance feedback and strategic actions, as well as some pertinent directions for future research.

Citation

Xue, S., Chen, H. and Wu, J. (2023), "Performance feedback and firms’ strategic actions: a cross-national meta-analysis", Management Decision, Vol. 61 No. 7, pp. 2201-2230. https://doi.org/10.1108/MD-03-2022-0270