The ABC for Studying the Too-Much-of-a-Good-Thing Effect

Author:

Busse Christian1,Mahlendorf Matthias D.2,Bode Christoph3

Affiliation:

1. Department of Management, Technology and Economics, Swiss Federal Institute of Technology Zurich, Zurich, Switzerland

2. Frankfurt School of Finance & Management, Frankfurt am Main, Germany

3. Department of Business Administration, University of Mannheim, Mannheim, Germany

Abstract

The too-much-of-a-good-thing (TMGT) effect occurs when an initially positive relation between an antecedent and a desirable outcome variable turns negative when the underlying ordinarily beneficial antecedent is taken too far, such that the overall relation becomes nonmonotonic. The presence of the TMGT effect incites serious concerns about the validity of linearly specified empirical models. Recent research posited that the TMGT effect is omnipresent, due to an overarching meta-theoretical principle. Drawing on the competitive mediation approach, the authors of the present study suggest an antecedent-benefit-cost (ABC) framework that explains the TMGT effect as a frequent but not omnipresent issue in empirical research and integrates a variety of linear and nonlinear relationships. The ABC framework clarifies important conceptual and empirical issues surrounding the TMGT effect and facilitates the choice between linear and curvilinear models. To avoid serious methodological pitfalls, future studies with desirable outcome variables such as, for example, task performance, job performance, firm performance, satisfaction, team innovation, leadership effectiveness, or individual creativity should consider the ABC framework.

Publisher

SAGE Publications

Subject

Management of Technology and Innovation,Strategy and Management,General Decision Sciences

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