Who is this research for? Supply chain executives, logistics leaders, fleet managers, and operations professionals seeking to improve fuel efficiency through performance management practices.
Executive Summary
This research from Christian Hofer and Ha Lam at the Sam M. Walton College of Business, University of Arkansas (Department of Supply Chain Management) examines how relative performance feedback—specifically ranking drivers against their peers—affects fuel efficiency in the trucking industry. Using weekly, driver-level data from a U.S.-based motor carrier, the study analyzes how drivers’ fuel efficiency changes after receiving rank-based feedback and how week-over-week changes in rank influence those responses.
The findings suggest that drivers tend to improve fuel efficiency after receiving feedback indicating a higher rank and reduce fuel efficiency following lower rankings. However, these effects are not uniform. Ranking feedback appears to be most influential for top- and bottom-ranked drivers, while middle-ranked drivers respond less strongly. In addition, recent changes in a driver’s rank—both improvements and declines—can weaken the effectiveness of ranking feedback, indicating that frequent shifts in relative standing may dampen motivation. Together, the results suggest that while ranking-based feedback can influence driver behavior, its impact depends heavily on how it is designed, delivered, and targeted.
Action Items for Industry
- Use ranking feedback selectively: Ranking-based performance feedback appears most effective for top- and bottom-performing drivers, suggesting that a one-size-fits-all approach may limit its impact.
- Rethink feedback for middle performers: Middle-ranked drivers show weaker responses to ranking information, indicating that individualized or behavior-specific feedback may be more effective for this group.
- Be mindful of frequent rank changes: Week-over-week improvements or declines in rank can reduce the motivational value of feedback, suggesting that overly frequent updates may undermine performance gains.
- Pair rankings with guidance: Supplementing rank information with actionable insights—such as idling behavior or driving habits—may help drivers better translate feedback into sustained fuel efficiency improvements.
- Align incentives with feedback design: When rankings are tied to rewards, leaders should ensure feedback systems reinforce consistent effort rather than short-term fluctuations in performance.
Quote from the Researcher
“We tend to think that feedback is always a good thing. Our research shows that feedback can, in fact, be demotivating and counterproductive. What makes our work impactful is that we identify the specific situations in which relative performance feedback may—or may not—be beneficial.”
– Christian Hofer
Co-Authors & Affiliations
Saif Mir — University of Delaware, Alfred Lerner College of Business and Economics
Link to the Original Research
Published in International Journal of Physical Distribution & Logistics Management, available here.
📩 Interested in learning more? If you’d like additional information about this research or to connect directly with the researchers, please email us at research@walton.uark.edu.
