Perceived obstacles as the indicators of adaptive paths to performance management: Tracing exploration and exploitation in surveys of public managers

Research on performance management, as it applies to public sector organizations, has been addressed most often from a static perspective. A process-oriented view on performance is undertaken through use of perceived obstacles, garnered through two large surveys of U.S. government managers, to infer the adaptive paths federal agencies have followed. By applying a learning-based model founded on March’s framework of exploration and exploitation, the ideal-typical ways that public organizations adapt to a performance initiative can be distinguished, opening a window into the processes such learning entails. Structural equation modeling provides the statistical capacity to interpret exploration and exploitation as cohesive paths. Exploratory adaptation appears to have been largely counterproductive, as the obstacles associated with this dynamic indicated a roadblock rather than a path forward. But exploitation had the opposite effect, as its associated obstacles corresponded with greater use of performance measures for management activities and enhanced results orientation.