Self-Assessment, Self-Enhancement, and the Choice of Comparison Organizations for Evaluating Organizational Performance

Abstract

We examine the influence of the self-assessment and self-enhancement motives on the choice of comparison organizations in two experimental studies. Study 1 shows that: (1) self-assessment generally prevailed over self-enhancement, guiding decision makers to choose organizations that were more similar and had better performance; (2) self-enhancement was more pronounced under conditions of low performance, leading participants to more frequently choose organizations that were less similar and had lower performance; and (3) self-enhancing comparisons inhibited perceptions of failure and the propensity to make changes. Study 2 extends the results of Study 1 by showing that participants were more likely to choose comparison organizations that had lower performance and were less similar when they were in a self-enhancement mindset than when they were in a self-assessment mindset. The combined effects of self-assessment and self-enhancement on the choice of comparison organizations are discussed in relation to the broader organizational literature on learning from performance feedback.

Citation

Audia, P.G., Brion, S. and Greve, H.R. (2015), "Self-Assessment, Self-Enhancement, and the Choice of Comparison Organizations for Evaluating Organizational Performance", Cognition and Strategy (Advances in Strategic Management, Vol. 32), Emerald Group Publishing Limited, Leeds, pp. 89-118. https://doi.org/10.1108/S0742-332220150000032018