Different Aspirations, Different Directions: A Behavioural Perspective on Negative Performance Discrepancy and Problemistic Search

Abstract Although the behavioural theory of the firm (BTOF) literature argues that negative performance discrepancy triggers problemistic search, whether and how negative social versus historical performance discrepancy differ in their impact on such search—and how managers prioritize between these two aspirations—remains unclear. Drawing on the BTOF and temporal focus literature, we posit that negative social performance discrepancy leads to an increase in search scope, while negative historical performance discrepancy leads to an increase in search depth. We further find that CEO temporal focus moderates these relationships: the link between negative social performance discrepancy and search scope is stronger under CEOs high in present focus, whereas the link between negative historical performance discrepancy and search depth is stronger under CEOs high in past focus. Our findings contribute to the BTOF literature by clarifying the distinct roles of historical and social aspirations in problemistic search and by incorporating temporal focus in performance feedback studies.