Coping with the Threat? Investigating How and When Negative Performance Feedback Leads to Supervisor Bottom-line Mentality

Abstract

Although existing research has explored the outcomes of supervisor bottom-line mentality (SBLM) extensively, its antecedents remain underexplored. Drawing on threat rigidity theory, we investigate how and when negative performance feedback (NPF) leads to SBLM. We conceptualize SBLM as a state-like variable and propose that supervisors feel threatened when receiving NPF from directors, which in turn leads to SBLM. We further propose that competitive climate and trait competitiveness moderate this relationship, such that higher (vs. lower) levels of competitive climate or trait competitiveness strengthen the indirect effects of NPF on SBLM through supervisors’ perception of threat. We tested our hypotheses in two studies: a scenario-based experiment and a three-wave time-lagged field study. The results generally supported our hypotheses. Overall, our findings show NPF received from directors increases the supervisor's threat perception, which then leads to SBLM. This indirect effect is more likely in a higher (vs. lower) competitive climate. We discuss the theoretical and practical implications of our findings.