The effect of process and outcome accountability on individual exploration

Abstract

Most organizations today use various management control systems that make employees accountable for what they do and/or how they do it. Accountability systems that emphasis either outcomes or processes have been found to differentially influence performance in various contexts. In this paper, the effect of these types of accountability on individual exploration (innovation) is examined. Using the concept of performance pressure (the stakes and demands associated with the task) and employing a motivated information processing perspective, it is predicted that process accountability will increase exploration of new ideas while outcome accountability will lead to more exploitation of existing ideas. An experiment is described that tests the main effects of accountability type and examines the mediating role of performance pressure. Results show support for the main effect of accountability type on exploration and provide partial support for the mediating role of performance pressure.