The effect of obedience pressure and authoritarianism on managers' project evaluation decisions |
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Authors: | Vincent K Chong Imran Syarifuddin |
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Institution: | a Accounting and Finance (M250), UWA Business School, The University of Western Australia, 35 Stirling Highway, Crawley, Western Australia 6009, Australia b Audit Board of The Republic of Indonesia, Jl. Andi Pangeran Pettarani, Makassar, South Sulawesi 90222, Indonesia |
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Abstract: | This study examines the effects that obedience pressure and the personality trait of authoritarianism have on managers' project evaluation decisions. A laboratory experiment was conducted to test the various hypotheses formulated in this study. The results suggest that project managers have a higher inclination to escalate their commitment to a failing project in the presence of obedience pressure. The results further reveal that project managers' tendency to escalate is most prominent in a private information situation and in an obedience pressure condition. In addition, the results suggest that low authoritarian project managers exhibited a greater tendency to continue a failing project regardless of the extent of obedience pressure under private information conditions. Furthermore, high authoritarian project managers exhibited a greater tendency to continue a failing project only when obedience pressure was present under private information conditions. |
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Keywords: | Obedience pressure Authoritarianism Project evaluation decisions |
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