The Impact of Forward-Looking Metrics on Employee Decision-Making: The Case of Customer Lifetime Value

The Performance Effect of Feedback Frequency and Detail: Evidence from a Field Experiment in Customer Satisfaction

“…The ultimate objective of this literature is to judge the strength of the performance metric in providing information to the firm about employees’ choices (the control function). The design of performance metrics to facilitate the employee’s decision making (the decision‐making function) has been analyzed in the literature only rarely (Sprinkle [], Casas‐Arce, Martínez‐Jerez, and Narayanan []). In this study, we keep constant the incentive compensation and show how changes in the detail and frequency of performance metrics affect decision makers’ behavior.…”

Information Provision, Incentives, and Attention: A Field Experiment on Facilitating and Influencing Managers' Decisions

“…Anderson and Kimball (2019) showed that providing school teachers with information about students' learning progress facilitates their diagnoses and possible focus to improve students' performance. In Casas-Arce et al (2017a), the simple provision of customer lifetime value data to bank employees positively impacts the customer value and increases the employees' attention toward more profitable clients. 7 find in a field experiment, that providing supervisors with objective information of subordinates' performance raises profits in a retail bank.…”

The Benefits of Deliberative Involvement in the Design of Incomplete Feedback Systems*

“…4 Examples of technology‐based controls that provide feedback‐type information include decision support systems, ERP systems, and enterprise information portals. Two field studies in accounting have recently documented the benefits of such systems for cooperation in the banking and telecommunication industries (Casas‐Arce et al 2017; Li and Sandino 2018). Meanwhile, experimental studies show that providing employees with feedback that other group members behave cooperatively allows them to establish cooperation‐based trust and to reduce the perceived risk an individual group member faces from choosing a cooperative action (Coletti et al 2005; Kelly and Tan 2010; Garrett et al 2019).…”

“…Technology‐based controls that provide feedback‐type information, such as decision support systems, enterprise resource planning systems (ERPs), or enterprise information portals, are widespread in practice (Dechow et al 2006; Barua et al 2007). Benefits for cooperation of such systems have recently been documented by field studies in the banking and telecommunications industry (Casas‐Arce et al 2017; Li and Sandino 2018). Our results show that involvement of employees in the design of such systems may facilitate cooperation, especially when organizations are exposed to shocks and when their systems suffer from incompleteness and rigidity (Burns and Scapens 2000; van der Steen 2009).…”