Explaining effort substitution in performance systems: the role of task demands and mission orientation

This article contributes to a theory of performance gaming, as it studies why public organizations engage in effort substitution (i.e. directing effort towards rewarded as opposed to unrewarded areas). We argue that effort substitution becomes more likely if tasks are difficult; less likely in the presence of a strong mission orientation; and that mission orientation can mitigate the task demands effect. Examining a five-year panel data set of high schools, we find support for the hypotheses when rewarded and unrewarded measures capture different dimensions of performance. However, results are mixed when rewarded and unrewarded measures are conceptually linked.