Double-edged sword of Workplace Gossip, Performance Pressure and Employee Outcomes, Insights from Affective Events Theory

Abstract

Purpose—This study examines the dual nature of workplace gossip and its impact on employee outcomes in the banking industry in Pakistan, using Affective Events Theory (AET) as the guiding framework. It investigates how positive and negative gossip influence workplace incivility and innovative work behavior.

Design/Methodology/Approach—The study uses survey data collected from 320 banking employees in Pakistan. It analyzes the effects of positive and negative gossip on workplace outcomes through the mediating role of performance pressure and the moderating role of perceived organizational support.

Findings—The results indicate that negative gossip increases performance pressure through cognitive overload, which in turn leads to workplace incivility. Positive gossip, while generally beneficial, also creates anxiety in collectivist contexts due to overthinking, triggering cognitive strain. Perceived organizational support strengthens positive outcomes by reframing performance pressure as a challenge rather than a threat.

Limitations—The study is limited to the banking sector in Pakistan, which may restrict the generalizability of the findings to other industries or cultural contexts. Additionally, reliance on self-reported survey data may introduce response bias.

Originality/Value-—This research extends Affective Events Theory to collectivist and high power-distance cultures, demonstrating that the effects of workplace gossip are culturally contingent. It contributes to the literature by highlighting gossip as a complex social phenomenon that can both hinder and enhance employee behavior depending on organizational support and cultural context.