CRC/TRR 266/2: Transparency Effects of Organizational Innovations (SP A02)

We explore the consequences of organizational innovations on transparency for different stakehold-ers of the firm, where transparency corresponds to the availability of decision-relevant information. First, we analyze the role of social preferences for the adoption of self-managed teamwork and the ensuing effects on within-firm transparency. Second, we consider the informativeness of KPIs reflect-ing a firm’s workplace conditions for different types of decisions taken by a heterogeneous group of stakeholders. We focus on the usefulness and effects of the standardization of such KPIs and firms’ incentives to strategically misreport this type of information.