Anticipated regret and escalation of commitment to failing, new product development projects in business markets

2019 ◽  
Vol 76 ◽  
pp. 157-168 ◽  
Author(s):  
Kumar R. Sarangee ◽  
Jeffrey B. Schmidt ◽  
Roger J. Calantone
2014 ◽  
Vol 29 (3) ◽  
pp. 209-214 ◽  
Author(s):  
Naveen Donthu ◽  
Belgin Unal

Purpose – Business managers are constantly faced with the decision to continue or abandon new product development projects. However, this type of decision may not be easy. These decisions are usually prone to bias of managers. Managers are known to escalate their commitment toward failed projects. It is also not easy to identify projects that are suffering from escalation of commitment. The purpose of this paper is to propose an objective escalation identification method. Design/methodology/approach – This paper proposes an objective escalation identification method using data envelopment analysis (DEA). The results from DEA are compared with those of subjective methods of identifying escalation. Findings – The objective estimate of escalation given by DEA was comparable to the subjective estimate of escalation given by the managers in the survey. Research limitations/implications – DEA is sensitive to outliers and managers should be careful in selecting projects that are to be included for comparison. DEA does not give statistical fit indices as it is an operational research based technique. Practical implications – DEA is an objective and automatic tool that makes the decision of managers easier. Managers can use this tool by inputting the output and input variables of their projects and then see which ones are escalated, therefore need to be abandoned. As a consequence, escalation of commitment and big losses can be prevented especially in new product development area. Originality/value – By using the proposed objective approach, escalation of commitment and associated big losses can be prevented especially in new product development area.


2017 ◽  
Vol 21 (5) ◽  
pp. 1035-1052 ◽  
Author(s):  
David T. Rosell ◽  
Nicolette Lakemond ◽  
Lisa Melander

Purpose The purpose of this paper is to explore and characterize knowledge integration approaches for integrating external knowledge of suppliers into new product development projects. Design/methodology/approach This paper is based on a multiple, in-depth case study of six product development projects at three knowledge-intensive manufacturing firms. Findings Firms make purposeful choices to devise knowledge integration approaches when working in collaborative buyer – supplier projects. The knowledge characteristics of the supplier input guide the choice of either coupling knowledge sharing and combining across firms or decoupling knowledge sharing (across firms) and knowledge combining (within firms). Research limitations/implications This study relies on a limited number of case studies and considers only one supplier relationship in each project. Further studies could examine the challenge of knowledge integration in buyer – supplier relationships in different contexts, i.e. in relation to innovation complexity and uncertainty. Practical implications Managers need to make choices when designing knowledge integration approaches in collaborative product development projects. The use of coupled and decoupled approaches can help balance requirements in terms of joint problem-solving across firms, the efficiency of knowledge integration and the risks of knowledge leakage. Originality/value The conceptualization of knowledge integration as knowledge sharing and knowledge combining extends existing perspectives on knowledge integration as either a transfer of knowledge or as revealing the presence of pertinent knowledge without entirely transmitting it. The findings point to the complexity of knowledge integration as a process influenced by knowledge characteristics, perspectives on knowledge, openness of firm boundaries and elements of knowledge sharing and combining.


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