Can Technology-Enabled Advanced Monitoring Systems Influence Individual Performance and Team Dynamics?

Recent advancements in11 This research benefitted significantly from feedback from seminar participants at Universidad Autonoma de Madrid, Gavin Cassar, Patrick Ferguson, Matthias Mahlendorf (editor of the special issue) and two anonymous reviewers. This project was supported by the Kinsman Grant from the Faculty of Business and Economics at the University of Melbourne. Research assistance provided by Antonius Jaeger, Yile (Anson) Jiang and Laure Pavaday is much appreciated. technology have resulted in more sophisticated employee monitoring systems. We study the impact of a technology-enabled advanced monitoring system deployed by the National Basketball Association and explore whether it serves a decision-facilitating role and/or a decision-influencing role at the individual-level. We find that the system impacts players' playing strategy (i.e. a decision-facilitating role), but not their effort (i.e. a decision-influencing role). The impact on playing strategy increases average individual performance across the entire sample. We also find that the effect is somewhat greater for lower ability individuals in the first year of implementation. At the team-level, we find that system adoption is associated with a smaller dispersion of effort and a greater degree of specialization among individuals in a team. Our study has implications for the use of technology-enabled advanced monitoring systems in a range of industries.