How Controlling Failure Perceptions Affects Performance: Evidence from a Field Experiment

• Cronin, Matthew 
• Erkens, David H. 
• Schloetzer, Jason D. 
• Tinsley, Catherine H 

Indexed by

SSCI FT ABDC-A*

Abstract

We　conducted　a　clustered　randomized　field　experiment　with　20　Brazilian　distributorships　of　a　multinational　direct　sales　organization　to　examine　whether　controlling　failure　perceptions　through　formal　communications　increases　performance.　We　used　the　organization＇s　weekly　sales　meetings　to　deliver　a　video-based　message　from　the　regional　head　that　either　communicates　workers　should　view　failure　as　a　natural　part　of　learning　rather　than　an　indictment　of　their　ability　(treatment　condition)　or　simply　summarizes　the　organization＇s　history　(control　condition).　We　find　that　those　who　were　assigned　to　the　treatment　condition　were　more　likely　to　sustain　their　effort　in　response　to　the　economic　adversity　that　coincided　with　our　experiment.　Additional　analyses　suggest　that　our　treatment　accomplished　this　by　increasing　job-specific　confidence　and　by　reinforcing　social　norms　that　encourage　workers　to　persevere　after　failure.　Overall,　our　findings　highlight　that　formal　communications　from　senior　management　are　a　viable　control　mechanism　for　sustaining　effort　in　the　face　of　failure.

Keyword

• confidence
• failure
• organizational messages
• performance
• personal goals
• social control

Author Community

[Cronin, Matthew] George Mason Univ, Sch Business, Fairfax, VA 22030 USA

[Erkens, David H.] China Europe Int Business Sch, Shanghai, Peoples R China

[Schloetzer, Jason D.; Tinsley, Catherine H] Georgetown Univ, McDonough Sch Business, Washington, DC USA

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