Journal of Contemporary Issues in Business and Government

Abstract

Using Social exchange theory, this study aimed to examine whether the developmental and
evaluative purpose of performance appraisal significantly predicts job embeddedness and the
interaction effect of internal and external locus of control. Data were gathered from salespersons
of the pharmaceutical industry working in Peshawar, Khyber Pakhtunkhwa. A sample of 304
respondents using a cross-sectional survey was drawn for final analysis using non-probability
sampling technique. Measurement and structural model was tested using partial least squares
structural equation modeling (PLS-SEM). Findings revealed that both developmental
performance appraisal and evaluative performance appraisal significantly and positively
influence job embeddedness. Results also indicate that internal and external locus of control
significantly moderates the relationship between developmental and evaluative performance
appraisal with job embeddedness. These findings provide important insights in understanding the
dimensions of performance appraisal for predicting workplace outcome. The study has
theoretically contributed to the existing literature by examining the boundary condition of
internal and external locus of control. Finally, recommendations for managers and future
research directions have been documented at the end of the study.