The Too-Much-of-a-Good-Thing Effect in Management

The Too-Much-of-a-Good-Thing Effect in Management

2013 | Jason R. Pierce, Herman Aguinis
The article "The Too-Much-of-a-Good-Thing Effect in Management" by Jason R. Pierce and Herman Aguinis explores a meta-theoretical principle that explains why seemingly beneficial antecedents in management can lead to negative outcomes when taken to an extreme. The authors propose the "Too-Much-of-a-Good-Thing Effect" (TMGT effect), which suggests that positive relationships between variables often reach an inflection point after which the relationship becomes asymptotic or even negative, resulting in a curvilinear pattern. This effect challenges the common assumption in management theory that more is always better and highlights the importance of considering context-specific boundaries. The TMGT effect is illustrated through various examples across different management subfields, including organizational behavior, human resource management, entrepreneurship, and strategic management. For instance, in organizational behavior, excessive levels of leadership traits like structure and consideration can lead to negative outcomes. In human resource management, job enrichment and experience can have diminishing returns beyond a certain point. In entrepreneurship, excessive planning and rapid growth can be detrimental to new ventures. In strategic management, too much diversification or organizational slack can also lead to negative outcomes. The authors argue that the TMGT effect is a necessary meta-theoretical framework to account for the paradoxical findings in management research, which often contradict the linear and monotonic assumptions. They emphasize the need for future research to consider the location of inflection points, the role of moderating effects, and the specific shapes of relationships. The TMGT effect provides a more comprehensive understanding of management phenomena by recognizing that excessive levels of beneficial factors can lead to undesirable outcomes, thus guiding both theory development and practical applications in management.The article "The Too-Much-of-a-Good-Thing Effect in Management" by Jason R. Pierce and Herman Aguinis explores a meta-theoretical principle that explains why seemingly beneficial antecedents in management can lead to negative outcomes when taken to an extreme. The authors propose the "Too-Much-of-a-Good-Thing Effect" (TMGT effect), which suggests that positive relationships between variables often reach an inflection point after which the relationship becomes asymptotic or even negative, resulting in a curvilinear pattern. This effect challenges the common assumption in management theory that more is always better and highlights the importance of considering context-specific boundaries. The TMGT effect is illustrated through various examples across different management subfields, including organizational behavior, human resource management, entrepreneurship, and strategic management. For instance, in organizational behavior, excessive levels of leadership traits like structure and consideration can lead to negative outcomes. In human resource management, job enrichment and experience can have diminishing returns beyond a certain point. In entrepreneurship, excessive planning and rapid growth can be detrimental to new ventures. In strategic management, too much diversification or organizational slack can also lead to negative outcomes. The authors argue that the TMGT effect is a necessary meta-theoretical framework to account for the paradoxical findings in management research, which often contradict the linear and monotonic assumptions. They emphasize the need for future research to consider the location of inflection points, the role of moderating effects, and the specific shapes of relationships. The TMGT effect provides a more comprehensive understanding of management phenomena by recognizing that excessive levels of beneficial factors can lead to undesirable outcomes, thus guiding both theory development and practical applications in management.
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