Redesigning performance management practices to boost innovative behaviours: the moderating role of remote work

Abstract

Purpose – Contemporary organizations face a growing need for innovation while work is becoming increasingly digitalized. In such a context, employees’ innovative work behaviour (IWB) is crucial. However, little attention has been given to whether and how human resource management (HRM) practices can sustain IWB in remote work. Thus, this study aims to explore the relationship between performance management (PM) practices and employees’ IWB when job is performed remotely. Design/methodology/approach – Drawing on signalling perspective of HRM, this study applies regression analysis on data collected through an online questionnaire administered to a sample of 647 Italian employees testing the moderating role of remote work in the relationship between PM and IWB. Findings – The findings show that result- and new-competence-based appraisal promote IWB, regardless of the extent to which work is performed remotely. In contrast, remote work nullifies the role of employee involvement in the goal setting process, as well as the influence of compensation-oriented PM and developmental performance management. Continuous feedback emerges as the key PM practice sustaining IWB among remote employees. Research limitations/implications – This study shows that remote work represents a key boundary condition in the relationship between PM and IWB. More specifically, the findings indicate that only certain PM practices − such as result- and competence-based appraisal and continuous feedback sustain IWB when work is extensively performed remotely. However, the reliance on a convenience sample of Italian employees limits the generalizability of the findings, indicating the need for cross-national and longitudinal studies to examine these relationships across different remote and hybrid work settings. Practical implications – The findings suggest that organizations seeking to foster employees’ IWB should redesign PM systems by prioritizing results and competence development over task-based control. In remote work contexts, continuous feedback appears particularly critical. In addition, compensation-oriented PM practices do not inhibit IWB, whereas involvement of employees in goal setting becomes non-significant. Social implications – This study suggests that some PM practices, particularly continuous feedback, can contribute to mitigate drawbacks of remote work, like for instance social isolation and work-related stress, thus supporting more sustainable and inclusive forms of work. Originality/value – This study advances the literature on PM and IWB by identifying remote work as a key boundary condition. It also extends existing research on remote work by showing that practices known to support remote workers’ well-being − such as result-based appraisal, competence-based appraisal and continuous feedback − may likewise foster IWB, basically generating a signalling effect that encourages employees to be proactive and to generate new ideas and ways of working. In doing so, this study also provides guidelines to companies to redesign their PM systems.