Bounded rationality, blame avoidance, and political accountability: how performance information influences management quality

Sounman Hong, Sun Hyoung Kim, Jieun Son

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

We examine performance impact on management by investigating whether information on past organizational performance (‘performance feedback’) influences future managerial quality. We employ a regression discontinuity design to analyse the performance and managerial quality of Korean metropolitan governments’ utility services. We find that (1) providing performance feedback improves managerial quality, but this impact is observed only among low-performing organizations, and (2) the impact of performance feedback is greater if organizations operate in electorally competitive jurisdictions. To explain these findings, we propose a bounded rationality model of organizational decision-making.

Original languageEnglish
Pages (from-to)1240-1263
Number of pages24
JournalPublic Management Review
Volume22
Issue number8
DOIs
Publication statusPublished - 2020 Aug 2

Bibliographical note

Funding Information:
This work was supported by the National Research Foundation of Korea [NRF-2017S1A3A2067636].

Publisher Copyright:
© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group.

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Management of Technology and Innovation

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