Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145175
Authors: 
Bayo-Moriones, Alberto
Galdon-Sanchez, Jose Enrique
Martinez-de-Morentin, Sara
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10041
Abstract: 
In this study, we address the relationship between performance appraisal and competitive strategy, as well as the impact of this relationship on firm performance. The results indicate that the adoption of developmental performance appraisal and the use of administrative performance appraisal are higher among firms that pursue differentiation strategies compared to those competing on costs. Regarding firm performance, the interaction between a developmental appraisal system and a quality strategy displays higher return on equity and sales per employee. Those firms that combine a focus on innovation with administrative performance appraisal also enjoy higher performance. Finally, when the firm competes on the basis of cost reduction, the use of administrative appraisal increases the sales per employee.
Subjects: 
performance appraisal
competitive strategy
firm performance
developmental appraisal
administrative appraisal
JEL: 
M12
M52
Document Type: 
Working Paper

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