Descriptive statistics are shown in Table 1. Panel A shows descriptive results for Motivation,
Problem-Solving Ability, and Experience. These variables are included in the statistical analyses
reported below to control for their effects in examining the predicted relationships between
Formalization, Task Complexity, and Performance. This allows us to isolate the effect of firm-level
formalization on performance, as suggested by Libby and Luft (1993) and Libby and Tan (1994).
Panel B shows a correlation matrix for task variables and Motivation, Experience, Problem-Solving
Ability, and Formalization.