Abstract

Abusive supervision negatively affects its direct victims. However, recent studies have begun to explore how abusive supervision affects third parties. We use the emotion-based process model of schadenfreude as a basis to suggest that third parties will experience schadenfreude and increase their work engagement as a response to peer abusive supervision. Furthermore, we suggest that the context of competitive goal interdependence facilitates the indirect relationship between PAS and third parties’ work engagement on schadenfreude. We use a mixed-method approach to test our hypotheses. Data from an experimental study conducted by facial expression analysis technology and a multi‐wave field study generally support our hypotheses. Overall, our study extends PAS literature and meaningfully informs practitioners who aim to promote ethical workplace environments.