The Relationship of Team Goals, Incentives, and Efficacy to Strategic Risk, Tactical Implementation, and Performance

Abstract

This study examined the effects of goal difficulty, monetary incentives, and efficacy on the strategic risk, tactical implementation, and performance of teams performing a computer simulation. Goal difficulty increased strategic risk, in part through team efficacy. Strategic risk partially mediated goal difficulty's effect on performance. Incentives reduced strategic risk for easy-goal teams and improved tactical implementation. Teams with both difficult goals and incentives achieved the highest performance. Team performance was positively affected by goal difficulty, team efficacy, strategic risk, and tactical implementation.