Does Competitive Action Intensity Influence Team Performance via Leader Bottom-Line Mentality? A Social Information Processing Perspective

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Abstract

Leader bottom-line mentality (LBLM) exists when leaders solely focus on securing bottom-line outcomes to the exclusion of alternative considerations. Our research examines why leaders adopt LBLMs and the implications of this focused leadership strategy on team sales performance and pro-environmental behavior. Utilizing social information processing theory, we examine LBLM as a mediator and contend that competitive action intensity in the work environment provokes LBLM, which then signals to teams the importance of raising sales performance and reducing pro-environmental behavior. We also suggest that leader performance reward expectancy (i.e., perceptions that rewards are directly tied to high performance) serves as a first-stage moderator and team performance reward expectancy serves as a second-stage moderator, with higher (vs. lower) levels of each strengthening the indirect effects of competitive action intensity, through LBLM, onto team sales performance and pro-environmental behavior. Utilizing field data from a large pharmaceutical company (Study 1) as well as an experimental causal chain design (Studies 2a and 2b), we found support for our theoretical model.

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Ren, S., Mawritz, M. B., Greenbaum, R. L., Babalola, M. T., & Wang, Z. (2024). Does Competitive Action Intensity Influence Team Performance via Leader Bottom-Line Mentality? A Social Information Processing Perspective. Journal of Applied Psychology, 109(6), 811-–828. https://doi.org/10.1037/apl0001166

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