The impact of authentic leadership and adverse selection conditions on escalation of commitment

2021 ◽  
Author(s):  
Ross P. Roberts
2016 ◽  
Vol 54 (7) ◽  
pp. 1649-1668 ◽  
Author(s):  
Petru Lucian Curseu ◽  
Sandra G. L. Schruijer ◽  
Oana Catalina Fodor

Purpose – The purpose of this paper is to test the influence of collaborative and consultative decision rules on groups’ sensitivity to framing effect (FE) and escalation of commitment (EOC). Design/methodology/approach – In an experimental study (using a sample of 233 professionals with project management experience), the authors test the effects of collaborative and consultative decision rules on groups’ sensitivity to EOC and FE. The authors use four group decision-making tasks to evaluate decision consistency across gain/loss framed decision situations and six decision tasks to evaluate EOC for money as well as time as resources previously invested in the initial decisions. Findings – The results show that the collaborative decision rule increases sensitivity to EOC when financial resources are involved and decreases sensitivity to EOC when time is of essence. Moreover, the authors show that the collaborative decision rule decreases sensitivity to FE in group decision making. Research limitations/implications – The results have important implications for group rationality as an emergent group level competence by extending the insights concerning the impact of decision rules on emergent group level cognitive competencies. Due to the experimental nature of the design, the authors can probe the causal relations between the investigated variables, yet the authors cannot generalize the results to other settings. Practical implications – Managers can use the insights of this study in order to optimize the functioning of decision-making groups and to reduce their sensitivity to FEs and EOC. Originality/value – The study extends the research on group rationality and it is one of the few experimental attempts used to understand the role of decision rules on emergent group level rationality.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Aboramadan ◽  
Main Naser Alolayyan ◽  
Mehmet Ali Turkmenoglu ◽  
Berat Cicek ◽  
Caterina Farao

Purpose This paper aims to propose a model of the effect of both authentic leadership and management capability on hospital performance. This model proposes work engagement as an intervening mechanism between the aforesaid links. Design/methodology/approach Data were collected from 380 medical staff working in Jordanian Public hospitals and were analysed using the structural equation modelling analysis technique. Findings The results suggest that both authentic leadership and management capability have a positive effect on hospital performance. Although positive, the direct effect of management capability on performance was not significant. Furthermore, work engagement demonstrated to play a full mediation effect between management capability and hospital performance and a partial mediation effect between authentic leadership and hospital performance. Practical implications This study may be of use for public medical services providers in general and other services sectors in terms of the role authentic leadership and management resources can play in contributing to positive work-related outcomes at the individual and organisational levels. Originality/value Considering the mainstream literature in health-care management, to the best of the authors’ knowledge, this is the first study to date to integrate the impact of both authentic leadership and management capabilities in the public health-care sector. Further, the research model has not previously been introduced when taking into account the role that work engagement can play between the examined variables.


Author(s):  
Ari Puspa Sari ◽  
Gede Wira Kusuma

Escalation of commitment is a decision to increase or expand the commitment to a project or a particular investment even though the investment project or indicate failure. This research has the objective to obtain empirical evidence of the effect of adverse selection and negative framing effect on the escalation of commitment tendency. Experimental design used of this research is 2 x 2 factorial design with the instrument in the form of cases. Participants in this research were Magister ofAccounting and Magister of Management students, as a proxy manager chosen by purposive sampling technique as much as 196 participants. This research uses of two ways ANOVA analysis techniques. This research proves that adverse selection and negative framing have an influence on the propensity of escalation of commitment.


2018 ◽  
Vol 30 (8) ◽  
pp. 592-612 ◽  
Author(s):  
Amro Alzghoul ◽  
Hamzah Elrehail ◽  
Okechukwu Lawrence Emeagwali ◽  
Mohammad K. AlShboul

Purpose This study aims at providing empirical evidence pertaining to the interaction among authentic leadership, workplace harmony, worker's creativity and performance in the context of telecommunication sector. These research streams remain important issues and of interest as the world continues to migrate toward a knowledge-based economy. Design/methodology/approach Applying structural equation modeling, this study diagnosed the impact of Authentic leadership (AL) on employees (n = 345) in two Jordanian telecommunication firms, specifically, how it shapes workplace climate, creativity and job performance. The study also tests the moderating role of knowledge sharing in the model, as well as the mediating role of workplace climate on the relationship between AL and positive organizational outcomes. Findings The empirical result suggests that AL positively influences workplace climate, creativity and job performance; workplace climate positively influences creativity and job performance; workplace climate mediates the relationship between AL and creativity, and job performance; and knowledge sharing behavior moderates the relationship between AL and workplace climate. Originality/value This study highlights the magnificent power of AL and knowledge sharing, not only in shaping the workplace atmosphere but also in delineating how these variables stimulate creativity and performance among employees. The implications for research and practice are discussed.


2019 ◽  
Vol 3 (2) ◽  
Author(s):  
M. Arsyadi Ridha

This article tests the effect of hurdle rates and adverse selection on escalation of commitment. Participants consist of 135 junior managers who had passed two course of management. The result indicates that the managers with adverse selection conditions will tend not to continue unfavorable projects. This research also affirms that the managers with adverse selection conditions will be more likely not to continue projects that are not favorable under the conditions of self-set hurdle rates compared to the conditions of organization-set hurdle rates. This article may contribute to empirical evidence of a decline in comprehensive escalation of commitments. Keywords: adverse selection, self-set hurdle rates, organization-set hurdle rates, escalation  of commitment


2014 ◽  
Vol 10 (1) ◽  
pp. 37-60
Author(s):  
Jaya Priyadarshini Yarikipati ◽  
Srinivasa Rao Pinamala

Micro finance as an institution are seen to have characteristics that help to solve the problems of moral hazard and adverse selection, which are the existing problems of rural credit institutions which other institutions failed to do. Group lending, peer monitoring and joint liability systems solve the adverse selection and moral hazard issues associated with rural credit markets. This study also focused in finding out the impact of micro finance programme on poverty, money lenders, women empowerment and living standards of the rural poor based on the primary and secondary data collected from Kamavarapukota mandal in Andhra Pradesh in India. Using primary data collected from the filled survey through the constructive schedules and personal interview to estimates the linkages between microfinance and its impacts on rural credit facilities, dependency ratio of money lenders for their credit needs, reduction of rural poverty, and empowerment of women in socio-economic activities.  The conclusion of this study, clearly states that the introducing microfinance inducing the overall improvements of their credit facilities as well as augmentations of their livelihood facilities in different sections of the society.  Further positive effects of this programme is that to  reinforcements of vulnerable groups or targeted population Particularly, SCs, STS, OBCs and other weaker section of the society directly to empower and to participate  in social, economic,  and political activities


2020 ◽  
Vol 10 (3) ◽  
pp. 197-206
Author(s):  
Siti Zakiyah Hayati Nasution ◽  
Rindah Febriana Suryawati

Escalation of commitment behavior in investment decision making is an ineffective action by persisting on a project that indicates failure. This study aims to examine whether or not an adverse selection and negative framing effect on the tendency of escalation of commitment. This experimental research uses a 2 x 2 factorial design with an instruments of "PT Kue Hebat" case. Participants were Bachelor Degree of Management students who enrolled in Financial Management subject, as substitute for managers whom are chosen by random assignment technique as much as 50 participants. This study uses two ways ANOVA analysis techniques. The results of the study prove that the project manager will show a tendency to escalate commitment by continuing unfavorable projects in adverse selection conditions or in negative framing conditions.


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