Relative performance feedback in the trucking industry: how rank information affects drivers’ fuel efficiency

Abstract

Purpose Trucking companies often use relative performance feedback (RPF) to promote fuel-efficient driving. Building on prior, largely experimental research, we examine the effects of RPF on fuel efficiency performance in the trucking industry. In so doing, we consider how ranking information conveyed to drivers in RPF impacts their subsequent miles per gallon (MPG). Furthermore, we hypothesize that drivers interpret such ranking information in a temporal context such that recent improvements or deteriorations in their rank moderate the rank–MPG relationship.

Design/methodology/approach We analyze a driver-week-level panel dataset obtained from a US-based trucking company. We implement various regression analyses to estimate the hypothesized effects and ascertain the robustness of our findings. Potential endogeneity concerns are addressed as well.

Findings We find that truck drivers' fuel efficiency performance increases (declines) after receiving RPF, indicating a higher (lower) rank. This effect, however, is not uniform across all drivers – it is observed for top- and bottom-ranked drivers but less pronounced for middle-ranked drivers. Additionally, both week-over-week deteriorations and improvements in drivers' rankings over time can diminish the impact of RPF on fuel efficiency.

Originality/value Our work offers nuanced insights into how RPF affects truck drivers' fuel efficiency. We also contribute to the trucking-focused literature by highlighting feedback as a mechanism to alter operator behavior and efficiency. We similarly add to social comparison theory and prior RPF literature by documenting that temporal changes in relative performance – both improvements and deteriorations in a driver's rank – can moderate the way RPF affects subsequent performance. These insights collectively help inform the design of motor carriers’ performance feedback strategies.