Performance measurement and cross-functional cooperation: serial mediation of reciprocity and commitment

Purpose In social exchange theory (SET), intraorganizational social relationships are formed with the expectation of reciprocal benefits, reinforced by the support and efforts of those involved. This study aims to examine the serial mediation of reciprocity and commitment in the relationship between performance measurement system (PMS) sophistication level and cross-functional cooperation in a family-owned business. Design/methodology/approach Structural equation modelling was applied to analyse data from a survey conducted with 150 employees working in interdependent areas of a large Brazilian family business. Findings The results confirm the influence of PMS sophistication level on reciprocity and commitment as well as the influence of reciprocity and commitment on cross-functional cooperation. In contrast, the direct relationship between PMS sophistication level and cross-functional cooperation was not statistically significant, indicating the possible influence of other intervening variables. The study identified a serial mediation effect of reciprocity and commitment in this relationship. Research limitations/implications The study discusses the need to consider, at the PMS sophistication level, factors that presumably impact work activities, particularly reciprocity, commitment and cooperation. It also highlights the importance of understanding the effects of the constructs involved in social exchanges on intraorganizational relationships, with the goal of encouraging positive behaviours among cross-functional teams. Originality/value These findings contribute to the managerial literature by expanding the scope of relationships analysed through the SET lens with a serial mediation model. Additionally, they broaden discussion on the PMS sophistication level, highlighting the latter’s potential to enhance social exchanges and generate positive organizational impacts.