Performance Appraisal Pressure and Frontline Innovation in Retail Industry: The Role of Power Distance, Passion, and Growth Mindset

This study explores the impact of performance appraisal pressure and growth mindset on employee innovation in the retail industry. Purpose: The research aims to assess how performance appraisal pressure influences innovation behavior among retail employees, and how a growth mindset moderates this relationship. Method: A quantitative research approach was used, with data collected through an online questionnaire distributed to 200 employees from various retail settings. The survey measured the level of performance appraisal pressure, growth mindset, and employee innovation. Data were analyzed using SPSS, with reliability analysis, correlation, and regression techniques employed to examine the relationships between the variables. Results: The findings show that moderate levels of performance appraisal pressure enhance employee innovation, while excessive pressure negatively impacts it. Furthermore, a growth mindset was found to positively moderate the relationship between performance pressure and innovation, enabling employees to perceive challenges as opportunities for growth. The study’s results underscore the importance of balancing performance pressure and fostering a growth mindset to boost innovation. Retail managers should consider designing appraisal systems that encourage moderate pressure and support employees in developing a growth mindset to drive innovation in the workplace.