Article2015

PERFORMANCE FEEDBACK, GOVERNMENT GOAL‐SETTING AND ASPIRATION LEVEL ADAPTATION: EVIDENCE FROM CHINESE PROVINCES

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Public Policy and Administration Research China's Socioeconomic Reforms and Governance Accounting and Organizational Management

Abstract

Organizational goals shape performance feedback and have salient influences on strategic behaviours and outcomes. I develop a model of goal‐setting by combining performance gap and bureaucratic control theories. I predict that governments set goal levels historically in line with their past goal levels and attainment discrepancies, horizontally targeting the comparable peers' goal levels and performance gaps, and vertically aligning with the upper‐tier authorities' mandates. Using the data on annual economic growth of 31 Chinese provinces from 2000 to 2012, the within‐between random‐effects model substantially supports these hypotheses.

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References

1979Prospect Theory: An Analysis of Decision under Risk 1988Prospect theory: An analysis of decision under risk 2006WHAT’S MEASURED IS WHAT MATTERS: TARGETS AND GAMING IN THE ENGLISH PUBLIC HEALTH CARE SYSTEM 2013What Is Governance?2014Explaining Fixed Effects: Random Effects Modeling of Time-Series Cross-Sectional and Panel Data 2003Organizational Learning from Performance Feedback 1992Managerial Dilemmas 2003State Capacity and Local Agent Control in China: CCP Cadre Management from a Township Perspective

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