Boosting or backfiring? Unveiling the benefits and risks of individual pay for performance with interactional justice as the moderator

Abstract

Purpose Drawing upon expectancy theory and social exchange theory, our study examines the dual mediating mechanisms that explain how the impact of individual pay for performance (PFP) on job performance manifests positively by enhancing work effort and negatively by damaging team member exchange (TMX). Furthermore, we investigate the moderating role of interactional justice in strengthening PFP's positive effect and weakening its negative effect. Design/methodology/approach To test our research model, we designed a quantitative field study. Our data were collected by surveying 197 employees acro..