The influence of performance feedback frequency and affective commitment on the sunk cost effect

Der Fa Chen, Peng Kwang Chen, Shao Hsi Chung, Kuo Chih Cheng, Chen Ho Wu

Research output: Contribution to journalArticle

Abstract

The purpose of this study is to explore how combined effect of feedback frequency of investment performance and manager's affective commitment on reduction of the sunk cost effect. To this end, we designed an experimental questionnaire to collect data from production managers of electronics manufacturing companies listed on Taiwanese stock markets and used a hierarchical regression model to examine the relationships among variables. The results from 336 samples showed that just considering performance feedback frequency or affective commitment does not necessarily reduce the sunk cost effect. Only high feedback frequency jointed with high affective commitment can suppress the willingness of manager to continue a disadvantageous investment project.

Original languageEnglish
Pages (from-to)873-882
Number of pages10
JournalManagerial and Decision Economics
Volume41
Issue number5
DOIs
Publication statusPublished - 2020 Jul 1

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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