Previous research has suggested that social comparison costs are prevalent within organizations, and employing labor from outside the organization can potentiallymitigate the social comparison costs associated with internal incentive structures. However, with the development of the gig economy, gig employees and formal employees are interacting more frequently, leading to the emergence of social comparison costs among gig employees. To understand this new phenomenon, we drawing on social comparison theory, investigating that gig employees engage in both upward and downward social comparison with formal employees and induce emotional and motivational outcomes. Data collected from a leading Chinese internet company shows that gig employees’ upward (downward) comparison with formal employees can positively (negatively) affect gig employees’ organizational commitment through benign (malicious) envy. Additionally, the team’s competitive psychological climate positively (negatively) moderates the relationship between gig employees’ upward (downward) comparison and benign (malicious) envy. The results broaden our understanding of social comparison costs, as it now encompasses interactions not only among formal employees but also between formal and gig employees. Besides, we contribute to a deeper understanding of the emotional responses generated by social comparisons by linking social comparison literature and envy literature.
