The effect of job rotation policy in preventing managerial escalation of commitment

Vincent K. Chong; Rindah F. Suryawati

doi:10.1504/IJAAPE.2011.040833

The effect of job rotation policy in preventing managerial escalation of commitment

Vincent K. Chong, Rindah F. Suryawati

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

This paper examines the effect of job rotation policy as a control mechanism in preventing managerial escalation of commitment under an agency problem setting. A total of 54 business students participated in a laboratory experiment. A 2 × 2 between-subjects ANOVA was used to test the hypotheses developed for this study. The independent variables are information availability (public and private) and job rotation policy (present and absent). The dependent variable is project managers' decision for continuing or discontinuing a failing or unprofitable investment project. The results reveal that project managers will discontinue an unprofitable project in the presence rather than absence of job rotation policy under a private information situation. This result suggests that job rotation policy can be used as an effective de-escalation strategy.

Original language	English
Pages (from-to)	176-199
Number of pages	24
Journal	International Journal of Accounting, Auditing and Performance Evaluation
Volume	7
Issue number	3
DOIs	https://doi.org/10.1504/IJAAPE.2011.040833
Publication status	Published - Jun 2011
Externally published	Yes

Keywords

Escalation of commitment
Job rotation policy
Public information and private information

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10.1504/IJAAPE.2011.040833

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abstract = "This paper examines the effect of job rotation policy as a control mechanism in preventing managerial escalation of commitment under an agency problem setting. A total of 54 business students participated in a laboratory experiment. A 2 × 2 between-subjects ANOVA was used to test the hypotheses developed for this study. The independent variables are information availability (public and private) and job rotation policy (present and absent). The dependent variable is project managers' decision for continuing or discontinuing a failing or unprofitable investment project. The results reveal that project managers will discontinue an unprofitable project in the presence rather than absence of job rotation policy under a private information situation. This result suggests that job rotation policy can be used as an effective de-escalation strategy.",

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N2 - This paper examines the effect of job rotation policy as a control mechanism in preventing managerial escalation of commitment under an agency problem setting. A total of 54 business students participated in a laboratory experiment. A 2 × 2 between-subjects ANOVA was used to test the hypotheses developed for this study. The independent variables are information availability (public and private) and job rotation policy (present and absent). The dependent variable is project managers' decision for continuing or discontinuing a failing or unprofitable investment project. The results reveal that project managers will discontinue an unprofitable project in the presence rather than absence of job rotation policy under a private information situation. This result suggests that job rotation policy can be used as an effective de-escalation strategy.

AB - This paper examines the effect of job rotation policy as a control mechanism in preventing managerial escalation of commitment under an agency problem setting. A total of 54 business students participated in a laboratory experiment. A 2 × 2 between-subjects ANOVA was used to test the hypotheses developed for this study. The independent variables are information availability (public and private) and job rotation policy (present and absent). The dependent variable is project managers' decision for continuing or discontinuing a failing or unprofitable investment project. The results reveal that project managers will discontinue an unprofitable project in the presence rather than absence of job rotation policy under a private information situation. This result suggests that job rotation policy can be used as an effective de-escalation strategy.

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The effect of job rotation policy in preventing managerial escalation of commitment

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Keywords

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