Thesis advisor: Michael G. Pratt / Persistence, continuing effort in the face of challenges over time, can have clear benefits for creativity. At the same time, abandonment, stopping effort toward a course of action, is often necessary to help creators move forward towards their best ideas. Creative workers, and the organizations that employ them, thus face a dilemma between forces for persistence and forces for abandonment in developing ideas and projects, what I refer to as the persistence dilemma. Existing theory provides some clues about this dilemma (e.g. theories of motivation or escalation of commitment), but a lack of holistic theorizing leaves many questions outstanding. Through a longitudinal qualitative study of four organizations, I set out to explore how creative workers managed the persistence dilemma. I found that the organizational context shaped how project teams responded to the dilemma. Teams within the startups I studied managed the dilemma with a process focused on commitment. Leaders helped team members transform the ambivalence that resulted from the dilemma into commitment to the organizations core project. Teams in the established organization, by contrast, managed the dilemma with a process focused on balance. The organization focused on balancing forces for abandonment and forces for persistence since both were perceived as necessary and beneficial in their own way. My work has implications for understanding the persistence dilemma, as well as for theories of creativity more generally. / Thesis (PhD) — Boston College, 2021. / Submitted to: Boston College. Carroll School of Management. / Discipline: Management and Organization.

The diffusion of sales force automation (SFA) systems has enabled a far more systematic approach to sales force management. This opens new avenues for the academic study of the industrial selling process as well: new arenas for investigation, new windows into salesperson behavior, and new methodological pitfalls. The purpose of this dissertation is to develop a better understanding of SFA from an academic perspective, and then apply these insights to resolve gaps in our understanding of how sales forces behave and how they might be better managed. To do this, three areas of analysis are explored: methodological, behavioral, and theoretical.

ABSTRACT ESCALATION OF COMMITMENT IN INFORMATION TECHNOLOGY PROJECTS: A GOAL SETTING THEORY PERSPECTIVE BY VIJAY KASI Aug 30, 2007 Committee Chair: Dr. Mark Keil Major Academic Unit: Center for Process Innovation Information technology (IT) projects are prone to failure. One explanation for the high failure rate among IT projects is that managers overly commit to a failing course of action, a phenomenon referred as escalation of commitment. While the notion of goals and commitment are central to the phenomenon of escalation, very few prior studies have investigated their impact on escalation. In this study, a research model rooted in goal setting theory is advanced to better understand escalation of commitment of IT project managers. A role-playing experiment with 350 IT managers was used to test the proposed research model. The results of the study suggest that IT managers are more willing to escalate their commitment under the influence of easy and vague goals compared to difficult and specific goals. Initial goal commitment of IT managers and the level of project completion were found to have a significant effect on IT manager’s willingness to continue. Initial goal commitment of IT managers was also found to moderate the relationship between goal difficulty and willingness to continue. In other words, when there is a higher level of goal commitment, an easy goal will have a greater effect in terms of promoting an individual’s willingness to continue.

The literature on escalation situations and audience costs suggests that democratic executives tend to increase commitment to a foreign policy in response to negative feedback. However, real-world cases from international politics suggest otherwise. Specifically, executives do not appear to respond uniformly to failing situations. While scholars have begun to unravel the audience cost mechanism, up until know, we know little about reasons for the variation in how executives use policy feedback to update commitment to a foreign policy. In this dissertation, I adopt an integrative approach and present a model of sequential decision-making that explains the conditions under which leaders escalate and de-escalate commitment in response to feedback. I attempt to break down the audience cost mechanism to explain why democratic executives do not respond uniformly to negative feedback. While the literature on the escalation of commitment suggests decision-makers tend to increase investment in the face of negative feedback, my theory suggests that under certain conditions, executives may find it politically advantageous to back down from a failing policy. My theory emphasizes the relationship between citizens, executives, and foreign policy effectiveness. Next, I suggest that the foreign policy tool of military intervention provides a suitable test case for a theory of sequential decision-making. I first test hypotheses derived from the theory regarding the preference formation process of democratic citizens during the course of such an episode. Understanding the response of citizens to feedback is an important first step to understanding the updating decisions of democratic executives. While previous work has relied on aggregate survey data, experimentation provides me with the ability to analyze how an individual citizen?s preference over commitment is impacted by policy feedback. The results of the experimental analyses suggest that citizens act as investors: they favor increasing commitment to military interventions when viewing negative feedback, up to a point. I then test the main hypotheses derived from the theory regarding executive decision-making on a dataset of major power military interventions from 1960-2000. Overall, the results support the hypotheses: public approval conditions the manner in which executives use feedback to update intervention commitments. In the conclusion, I summarize the study by highlighting key results, present the broad implications for the study of democratic foreign policy making, and discuss avenues for future research.

Escalation of commitment is the voluntary continuation of investing resources into what appears to be a failing course of action whose outcome is uncertain. Investigation into the escalation of commitment phenomenon is important to organizations because such behavior could result in grave economic loss. This research investigates two cognitive biases that we posit lead to IT escalation of commitment, namely, attribution bias and overconfidence in an escalation decision, as well as desire to rectify past outcomes (DRPO) for its potential role as a mediator. To test our research model, 160 IT managers participated in a web-based role-playing experiment. Attribution was manipulated at two levels (internal and external), creating two treatment conditions. We posited that the participants assigned to the internal attribution condition would escalate their commitment to the failing IT project to a greater extent than participants assigned to the external attribution condition; that individuals that have a high, versus low, level of overconfidence would have a greater tendency to escalate; and that DRPO would mediate the effects of attribution and overconfidence on escalation of commitment. Attribution bias was significant at the .1 level, but in the opposite direction of what was hypothesized; overconfidence showed a significant main effect on escalation. The effect of attribution bias on escalation was significantly mediated by DRPO, but the effect of overconfidence on escalation was not mediated by DRPO. Implications of these findings for both research and practice are discussed.

Escalation of commitment to failing investments is considered to be representative of biased forms of decision-making which may result in unproductive consequences. Decision makers adopt investment courses of action in initial conditions of uncertainty, which subsequently appear to lead to failure. When confronted with the prospect of their decisions producing losses, they commit decision errors thus escalating their commitment to their original courses of action. Several theories with rational and irrational antecedents have been developed in the literature to explain the escalation phenomenon. Fundamental theoretical differences are associated with the origin of the concept. Escalation of commitment was conceived in the decision theory context of the problem of resource allocation under uncertainty conditions. This thesis describes the resource allocation problem in order to identify and explain associated characteristics. Explanations of these characteristics reveal several problems: there are no decision rules available to handle uncertainty; decision makers consistently violate the requirements for rationality and rational economic decision making; individual utility maximization is divorced from the business objective of profit maximisation and also involves taking increased risks when there is an expectation that investment losses will be recovered; there are several criteria for and methods of investment evaluation which are computationally and analytically difficult to apply; and whether a decision error has been made is indeterminate with some investment projects whose success or failure cannot be determined until after project completion. These problems lead to the conclusion that the determination of the success or failure of an investment decision may depend on the valuation methodology selected. In this respect it is argued that investment decisions undertaken in public organisations should be evaluated using methodologies developed to measure social benefits and costs because calculations of private rates of return provide misleading assessments. Research on the escalation phenomenon is dominated by a psychological perspective, which obtains its findings from extensive investigation of individuals in controlled experimental laboratory conditions. The experimental research has identified personal pre-dispositional, social and situational influences, which contribute to escalation and de-escalation of commitment. The major research focus has resulted in two theoretical explanations for escalation of commitment. These derive from descriptive cognitive motivational theories concerned with expectancy, that encourage rational decision making and dissonance, which in turn produce irrational self justification based decisions. An alternative research focus favours explanations from prospect theory. Research, critical of the psychological explanations favours rational explanations derived from the normative theory of expected utility, which encourages individual self-interested behaviour. This thesis is concerned with explaining escalation of commitment in organisations. This necessarily involves adopting an interdisciplinary perspective. This thesis examines two world expositions, Expo 86 and Expo 88. World expositions are unusual government events whose principal purpose is to celebrate human achievements. Expo 86 was held to celebrate Vancouver’s centenary. Expo 88 was held to celebrate Australia’s bicentennial. They were not designed for their potential profitability. To justify the expenditures involved other objectives are attached to the celebratory purpose. These usually are associated with urban renewal and economic development. They are unorthodox investment projects. They involve long lead times of capital expenditure followed by short operating periods of six months or less, after which time most of the capital improvements are either disposed of or demolished. Expo 86 incurred significant financial losses and was considered an escalation prototype. It became a case study used to develop a generalized theoretical model of escalation. The model specifies how initially formulated rational decisions are replaced progressively by decisions based on self-justification, which escalate commitment. Escalation is reinforced by psychological pre-dispositional, social and structural influences. The model is an extension of research findings from individual laboratory experiments. The thesis identifies several plausible alternative theoretical explanations for escalation in organisations. These involve emotional commitment, social influences to conform to group norms, the possibilities for deviating from rational decision making principles in the presence of uncertainly and the agency theory problem which involves individuals pursuing their own rational self interests which are contrary to the objectives of an organisation. Expo 86 was directly linked to urban renewal objectives. The economic project and urban planning studies of Expo 86 concluded that the event successfully achieved the urban development objectives using social cost benefit analysis as the criterion of evaluation. These objectives were rationally conceived and executed. As a result of the examination, the thesis explores the problems associated with investment projects having multiple objectives, looks at how rational explanations can be accommodated in the theoretical model and questions whether calculations of accounting negative rates of return should be the criteria for evaluation and the determinant of whether Expo 86 qualified as a prototypical example of escalation in organisations. The analysis of Expo 88 reinforced these concerns. A longitudinal dimension was adopted in the case study. This enabled the origins of the event to be explored, the objectives to be identified and the project to be evaluated using various private and public investment criteria. Expo 88 qualified as a failed private investment project on all but one of the financial investment criteria employed. The evaluation of Expo 88 as a public investment project produced social benefits and economic impacts in excess of social costs. Expo 88 was conceived by influential individuals who promoted the initiative for an exposition on the basis that its staging would be publicly and personally beneficial. The project was associated with multiple objectives other than its celebratory purpose that included tourism development and urban renewal from which the public was expected to benefit and which promoters believed justified the event. The principal decision makers were not directly influenced by profitability considerations because information had been provided during the planning phase, which indicated that the project would produce financial losses. Because of public pronouncements it became politically necessary to include the profitability of the project as an objective. Various costly and deceptive measures were adopted in order to generate an impression of profitability. At the same time success was promoted publicly and successfully, not in terms of its profitability, but in terms of attendance figures. As a result of the analyses, the theoretical model was modified by incorporating rational motives into the original structure. Decision makers were driven by rational motives over the life of the projects. In the case of Expo 88 these rational motives derived from agency theory relationships and the pursuit of objectives concerned with economic development, celebration and political recognition. The thesis concludes with a discussion of the contributions and limitations of the research. The contributions involve modifications to the theoretical model to reflect the importance of rational motives in the decision making process, generalisation of the causes of escalation in organisations in various contingent circumstances and the impact that multiple project objectives and methodological problems concerned with evaluation criteria have on theory development. The major limitation relates to the selection of public organisations engaged in unorthodox investment projects as inappropriate representatives to examine the escalation phenomenon.

Lean Startup Teori (LST) har kommit att växa i popularitet inom entreprenörskap världen över. LST är en teori som för startup- företag skall minska kostnader och tid samt för entreprenörer skapa en arbetsprocess som underlättar beslutsfattande. I denna studie har länkar mellan problematik inom beslutsfattande (overconfidence, prospektteori, gloriaeffekten samt escalation of commitment) och LST undersökts genom semistrukturerade intervjuer med entreprenörer i Sverige. Vidare har generella lärdomar från de olika fallen  undersökts för att belysa fördelar och svagheter inom LST. Då pionjärer inom LST hävdat att teorin lämpar sig inom alla  sektorer och branscher har även detta  påstående granskats. Studien fann att LST- processer motverkar de negativa effekterna associerade med overconfidence och  gloriaeffekten men kan inte hantera de  problem som introduceras i samband med prospektteori samt escalation of commitment. Vidare når studien slutsatsen att LST kräver en fit med varje enskilt startup - företag och fungerar bäst inom branscher och industrier som har låga inträdesbarriärer form av kapitalkrav. / Lean Startup theory (LST) has been growing in popularity in entrepreneurship worldwide. LST is a theory for startup companies to reduce costs and time, and for entrepreneurs to create a process that eases decision-making. In this study, links betweenproblems of decision making (overconfidence, prospect theory, the halo effect and escalation of commitment) and LST has been examined through semi-structured interviews with  entrepreneurs in Sweden. Furthermore, general lessons from the cases has been studied to illustrate advantages and  weaknesses of LST. As pioneers of LST argue that the theory is suitable for all  sectors and industries, this claim has also been examined. The study found that LST processes counteract the negative effects associated with overconfidence and the halo effect, but cannot handle the problems that areintroduced in conjunction with the  prospect theory and escalation of  commitment. Furthermore, the study reaches the conclusion that LST requires a fit with each startup company, and functions best in sectors and industries where the entry barrier of capital requirement is low.

Escalation of commitment is an individual's persistent behavior at sustaining commitment to an original decision or course of action. Although researchers have found that personality impacts escalation of commitment behavior, this study addressed a gap in escalation of commitment behavior regarding personality in higher education, which has consistently been ignored. Building on the self-justification theory, this study was an investigation of (a) whether perceived self-efficacy and dispositional optimism individually predicted escalation of commitment behavior; and (b) whether perceived self-efficacy and dispositional optimism jointly predicted escalation of commitment behavior after controlling for age, gender, ethnicity, socioeconomic status, and tenure. Hierarchical regression was performed using a sample of 76 participants from a community college in Minnesota. Results suggested that only perceived self-efficacy will predict leaders' escalation of commitment behavior and not dispositional optimism. The result of this study has implications for positive social change by aiding effective leadership decision making, enabling better screening and recruiting process, and allowing organizations to develop specific training and intervention programs that will help educational leaders utilize their positive attributes appropriately.

Escalation of commitment refers to the tendency of decision makers to continue with failing courses of action (Staw, 1981). An abundance of research has shown that decision makers persistently escalate commitment to less favorable alternatives when making a series of decisions related to a single course of action. This decision making fallacy occurs across a wide range of personal and professional settings, and has significant implications for management and policy. There has been a wealth of research suggesting various explanations for why escalating commitment occurs across a wide range of situations; however, there have been relatively few studies investigating factors that may reduce this type of irrational decision making. Emotional intelligence is the ability to recognize and understand emotional information in oneself and others and use that information to guide one's thinking and behavior (Salovey & Mayer, 1990). This study investigated the previously unexplored relationship between emotional intelligence and escalation of commitment decisions. It also examined whether anticipatory emotions and risk perceptions mediate the relationship between emotional intelligence and escalation of commitment. It was hypothesized that individuals who have higher emotional intelligence will be less likely to commit additional funds to unfavorable courses of action, and that this relationship is mediated by anticipatory emotions and risk perceptions. These hypotheses were tested using a scenario based experiment with 110 undergraduate students at a large Midwestern university. Escalation of commitment was measured using Staw's (1976) "Adams & Smith Financial Decision Case" (p.30). Emotional intelligence was measured using the 33-item emotional intelligence scale (Schutte, Malouff, Hall, Haggerty, Cooper, Golden, & Dornheim, 1998) The relationship between emotional intelligence and escalation of commitment was tested using regression analysis, and the mediating relationships (anticipatory emotions, risk perceptions) were tested using Baron and Kenny's (1986) mediation procedure. Findings from the study reveal several practical and theoretical contributions. Results suggest that emotional intelligence is not significantly related to escalation of commitment. However, anticipatory emotions were shown to play an important role in one's tendency to escalate commitments. Those who anticipated more positive emotions about finishing the course of action were significantly more likely to escalate commitments toward its completion. In addition, managerial experience was significant in reducing one's tendency to escalate commitments. Results, strengths, weaknesses and future research directions are discussed in relation to the current study.

Escalation of commitment in new product development has been studied extensively for the last four decades but the impact of culture on the escalation phenomenon remains largely unexplored. This study investigates how culture impacts the decision to escalate or deescalate commitment to new products. Americans are analytic thinkers whereas Chinese tend to be holistic thinkers. When it comes to decision making, analytic thinkers focus on field independent and abstract factors and believe that future is linear and static, whereas holistic thinkers focus more on contextual factors and believe that future is dynamic and nonlinear. Hence, Chinese are more likely to escalate their commitment relative to Americans on receiving a negative performance report in the new product development process. A lab experiment using weekend MBA students and managers was used to test this underlying hypothesis. The findings confirmed that analytical thinkers use fewer factors than holistic thinkers in making new product decisions, and that Chinese managers are more likely to escalate their commitment relative to American managers. The decision to escalate or de-escalate was moderated by perceived product innovativeness.