The brothers are watching: The peer monitoring mechanism of rivalry in reducing cheating behavior at work

Summary The consensus of the literature has suggested that competition prompts individuals to act unethically. However, prior research that explored the ethical implication of competition has largely ignored the role of contexts within its examination—studying competition generally independent of other social relationships/actors. Drawing on the relational perspective of competition (i.e., rivalry), we propose that broader social relationships in which rivalry relationships are embedded will give rise to alternative psychological processes that can account for a curbing effect of rivalry on workplace cheating behavior. Results from one pre‐registered experiment and three surveys on working professionals suggest that exposure to rivalry leads to a heightened perception of peer monitoring, which in turn is associated with lower cheating behavior at work. We further find that the effect of rivalry on the perception of peer monitoring is stronger (weaker) when employees' leader–member exchange (LMX) relationship with their supervisor is lower (higher), highlighting the significance of other social actors in the rivalry process. This research complements the literature with a balanced perspective regarding the ethical implication of competition and contributes to the theory building of rivalry by providing an interpersonal lens to the psychology of rivalry.