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Management Accounting Section Midyear Meeting

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Demand-Driven Feedback Systems and Employee Creativity

Fri, January 8, 5:00 to 6:30pm, TBA

Abstract

This paper takes a holistic approach to examine whether and how demand-driven feedback systems, which put employees in charge of the feedback process, affect employee creativity and the quantity of creative solutions developed. In an interactive laboratory experiment, we manipulate whether employees have the option to ask for performance feedback from a supervisor while developing creative solutions for a real-world problem. We find that a demand-driven feedback system in and of itself enhances employee creativity and reduces the quantity of creative solutions developed, relative to a traditional feedback system where employees cannot ask for feedback. Results reveal that effects are not driven by feedback frequency alone. We also further develop theory and demonstrate that a growth-creative mindset moderates the effect of a demand-driven feedback system on employee creativity and quantity. We contribute to the literature by showing that giving employees discretion over their feedback process influences creative outcomes.

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