Outlining the Dynamic relationships between Quiet Quitting and Firm Performance in Turbulent Environments

Abstract

Quiet quitting describes the intentional reduction of employee performance to the minimum required. This phenomenon is particularly hard to detect when managers are under pressures, and firms operate in highly uncertain environments. To explore the antecedents and consequences of quiet quitting on firm performance, this study combines the conceptual frameworks of the Knowledge-Based View and the Dynamic Capabilities perspective. The emerging complexity characterizing the cause-and effect relationships among quiet quitting, knowledge workers, organizational dynamic capabilities and firm performance was made explicit using a System Dynamics simulation model. The simulation model was used to test different scenarios to explore how quiet quitting impacts on firm performance. In line with previous studies, simulations results confirm that investing on workers’ knowledge per se doesn’t guarantee superior performance in turbulent environments. Rather, this study claims that implementing a sound strategy that combines investments in organizational dynamic capabilities and workers’ knowledge is likely to decrease fluctuations in firm performance. This is particularly true in companies with a large proportion of quiet quitter employees.