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The moderating effects of national culture on escalation of commitment

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  • Salter, Stephen B.
  • Sharp, David J.
  • Chen, Yasheng

Abstract

This study tests the cross-cultural sensitivity of three determinants of escalation of commitment: agency conditions, negative framing, and self-justification. A multiple-case experiment, using a sample of 1208 managers and MBA students surveyed over several years in nine countries investigated the moderating effects of national culture. We find that the effect of negative framing on escalation of commitment is significant, but unaffected by differences in national cultures. The adverse selection problem arising from agency predictions has a stronger effect in high-individualism countries than in low-individualism countries, and managers in higher long-term orientation countries are more likely to escalate projects with potential long-term payoffs.

Suggested Citation

  • Salter, Stephen B. & Sharp, David J. & Chen, Yasheng, 2013. "The moderating effects of national culture on escalation of commitment," Advances in accounting, Elsevier, vol. 29(1), pages 161-169.
    • Handle: RePEc:eee:advacc:v:29:y:2013:i:1:p:161-169
    DOI: 10.1016/j.adiac.2013.02.001
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    2. Björn Röber, 2020. "Escalating internationalization decisions: intendedly rational, but only limitedly so?," Business Research, Springer;German Academic Association for Business Research, vol. 13(2), pages 455-484, July.
    3. Waris Ali & Jeffrey Wilson & Muhammad Hamza, 2025. "A Meta Analytical Study of Cultural Conditions Moderating the Relationship Between Board Diversity and CSR Disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(4), pages 4586-4603, July.
    4. Schneider, Claudia R. & Fehrenbacher, Dennis D. & Weber, Elke U., 2017. "Catch me if I fall: Cross-national differences in willingness to take financial risks as a function of social and state ‘cushioning’," International Business Review, Elsevier, vol. 26(6), pages 1023-1033.
    5. Driouchi, Tarik & Trigeorgis, Lenos & So, Raymond H.Y., 2020. "Individual antecedents of real options appraisal: The role of national culture and ambiguity," European Journal of Operational Research, Elsevier, vol. 286(3), pages 1018-1032.

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