Abstract
The study of how firms respond to performance feedback through innovation constitutes a prominent domain of management research, stemming from the behavioral theory of the firm (BTOF). While numerous studies have delved into the nexus between performance feedback and innovation primarily drawn upon performance feedback theory in BTOF, some scholars have approached this subject from alternative perspectives, such as threat-rigidity theory and slack search mechanism. Despite the breadth of research in this area, existing empirical findings regarding this relationship present contradictory and conflicting results. Moreover, there is a lack of systematical review about organizational innovative responses to performance feedback. To address this deficiency, we undertake a systematic evaluation of how performance feedback influences innovation, employing a meta-analytic review including 58 studies. Additionally, we explore whether variations in the measurement strategies of innovation and performance feedback contribute to the heterogeneity in the main relationship. Through this study, we aim to provide a comprehensive review of firms’ innovative responses to performance feedback and offer insights for guiding future research endeavors in this topic.