21 research outputs found
Escalation of commitment and information security: theories and implications
No full text
Purpose
This study aims to explore the challenges that the escalation of commitment poses to information security.
Design/methodology/approach
Two distinct scenarios of escalation behavior are presented based on literature review. Psychological, organizational and economic theories on escalation of commitment are reviewed and applied to the area of information security.
Findings
Escalation of commitment involves continuation of a course of action after receiving negative information about it. In the information security compliance context, escalation affects a firm when an employee decides to break the firm’s information security policy to complete a failing task. In the information security investment context, escalation occurs if a manager continues investment in policies and solutions that are ineffective because of psychological, organizational or economic factors. Both of these types of escalation may be prevented with de-escalation techniques including a change in management or rotation of duties, monitoring, auditing and governance mechanisms.
Practical implications
Implications of escalation of commitment behavior for information security decision-makers and for future research are discussed.
Originality/value
This study complements the literature by establishing the context of escalation of commitment in decisions related to information security and reviewing managerial and economic theories on escalation of commitment.
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Rational Escalation: The Real Option Perspective
No full textEscalation is generally defined in investment context as continuation of an investment project after receiving negative signals about the outcome. This study demonstrates that under conditions of uncertainty about project outcome there is a rational incentive for the manager to continue a project to receive more information. Taking this real option on continuing the project has value for the firm. Simulations results from the option value model of investment demonstrate that likelihood of escalation is higher when signals have higher quality which increases the value of getting an additional signal. Likelihood of escalation also increases when the prior expectation of success is low, and when project termination cost is low. Continuing the project to receive additional information is shown to be more profitable than the simple net present value rule that excludes option value. The model implies that escalation may be value-maximizing for the firm, and managers should not automatically be discouraged to continue a project when new signals about its success may appear in the future
On the role of switching costs and decision reversibility in information technology adoption and investment
No full textABSTRACT Managerial decisions on the adoption of innovative technologies by a firm are made under conditions of uncertainty and must account for network externalities that imply the benefit of a technology is received not only from its intrinsic payoff, but also from the size of the network of other adopters. The theoretical model presented in this study demonstrates that for firms evaluating information technology investment with network effects key determinants of the technology selection pattern are adoption reversibility and switching costs. If switching costs are sufficiently high to make technology adoption irreversible then safer established technologies have an advantage as choosing a riskier untested technology opens the firm to the risk of being stranded without a network of followers. With lower switching costs, the technology adoption decision is reversible which provides an advantage to riskier untested technologies. A discussion of empirical evidence on adoption patterns in information technology provides application for the theoretical model
On the Role of Switching Costs and Decision Reversibility in Information Technology Adoption and Investment
No full textThe Image of fallen women in the domestic literature and publicism: to the background
No full textВ статье выявлены традиции в изображении падшей женщины в отечественной литературе: от «Пригожей поварихи» М. Д. Чулкова до «Припадка» А. П. Чехова. Автор показывает трансформацию образа падшей женщины в литературе и современной газетно-журнальной публицистике.The article revealed a tradition in the depiction of a fallen woman in the domestic literature: from M. D. Chulkov to A. P. Chekhov. The author shows the transformation of the image of a fallen woman in literature and modern publicism
Escalation of commitment and CEO departures: theory and evidence
No full textThe escalation of commitment process involves a decision-maker continuing commitment to an investment after receiving negative information. This study develops a principal-agent model to explore how escalation decisions are linked with departures of CEOs from the position. With asymmetric information, a CEO has an incentive to conceal prior decision errors by escalating commitment to failing investments and leaving the firm before the outcome of investment decisions is disclosed publicly. Results of empirical analysis based on a sample of over 3,000 US firms are consistent with the theory and demonstrate that firms’ reporting of low financial performance relative to their industry as well as initiation of new discontinued operations are preceded, and not followed, by unplanned CEO departures
Escalation Of Commitment In MIS Projects: A Meta-Analysis
No full textEscalation of commitment emerged as a major explanation for the propensity of management information systems projects to exceed time and budget constraints. Earlier studies demonstrated that escalation in MIS is a common event. This study presents a meta-analysis of the various theories of escalation that allows for integration of the various escalation factors into a model of irrational escalation and a model of rational escalation. The implications of rational and irrational escalation for the decision making in management of information systems are discussed
Top management team turnover, CEO succession type, and strategic change
No full textWhile previous research suggests that CEO turnover correlates with strategic changes in firm's operations such as discontinuation of operations, we demonstrate that such findings apply only to specific types of CEO turnover, and only if non-CEO members of the top management team also exit the firm. Our analysis examines cases of contender, follower, and outsider succession and reinforces the key role of non-CEO departures in strategic change at a firm. The results support an integration of the upper echelons perspective and the power circulation theory view of top management team turnover.Executive turnover Top management teams Strategic change Discontinued operations Power circulation theory
