Time Matters: Under/Overperformance Duration and Performance Improvements in the Public Sector

ABSTRACT Prior research on public organizations' strategic responses to performance feedback has focused solely on the intensity of performance feedback while neglecting its temporal dimensions. This study aims to fill this gap by incorporating the lens of time and investigating how performance feedback duration affects performance improvements in the public sector. Drawing on various theoretical perspectives, we theorize an inverted U‐shaped relationship between underperformance (negative performance feedback) duration and public organizations' subsequent performance improvements, and a U‐shaped relationship for overperformance (positive performance feedback) duration. Empirical analyses using the case of China's official city air quality ranking provide evidence supporting our theory. Our findings reveal that “time” (duration) can shape public organizations' responses to performance feedback in nonlinear ways and help reconcile inconsistencies in the existing literature, highlighting the importance of incorporating temporal dimensions of performance to advance performance feedback theory in the public sector.