Everything is Relative, but Relative to What? Defining and Identifying Reference Points

Reference points are an integral part of many organizational practices and theories. In spite of their widespread use, there has been very little theory development on reference points themselves. We investigate and propose a general theory of reference points. First, we develop a definition of reference points. We then identify reference point dimensions and how they contribute to reference point selection. Lastly, we propose a model of reference point selection and suggest how several moderators may affect the process.