Prior research in the performance feedback literature has focused on the implications of performance aspiration shortfall for search behavior of organizations. Scholars suggest that decision makers have problem solving or self-enhancement orientation in response to performance feedback. Current literature stresses that self-enhancement primarily takes shape through retrospective actions aimed at downplaying importance negative feedback. However, we argue that self-enhancement i.e., the motivation to project a positive image of oneself, could materialize through emphasizing positive future prospects. This may take place through adjustment of aspirations on another goal in a multiple goal environment. Accordingly, we argue and predict that while pursuing multiple goals, managers may use the setting of challenging targets on goal Z for compensation when performance on goal A could not meet expectations. We test and find support for our predictions in the context of US manufacturing facilities using data from 1992-2020.
