Does only performance feedback matter in public organizations? Testing the moderating role of directional managerial networking on performance improvement

Public management scholarship emphasizes the impact of performance feedback on organizational responses, but little attention is paid to the role of managerial networking. We use panel data of Korean quasi-governmental organizations (quangos) to examine these responses and the moderating effects of directional managerial networking. Findings reveal that negative feedback consistently leads to performance improvement, while positive feedback has adverse effects. Downward networking enhances improvement in low-performing organizations, whereas outward networking alleviates performance stagnation in high-performing organizations. This research contributes to the public management literature by offering a more nuanced understanding of organizational responses to feedback and the significance of managerial networking.