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

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.

The Influence of Organizational Factors on Registered Nurses’ Work Attitudes in Nigeria

“…Affective commitment (AC) is a reflection of the degree to which an employee is devoted to a cause or company (Bouraoui, Bensemmane, Ohana, & Russo, 2019). From the perspective of social exchange theory, affective commitment is employees' psycho-emotional response to some organizational factors (Chen, Chen, Chung, Cheng, & Wu, 2020). However, Bouraoui et al (2019) underpinned an employee's affective commitment to their perception of moral obligation to reciprocate organizational justice and norms.…”

“…Research interest in affective commitment is partly spurred by the assumption that employee's turnover intention (a close proxy off actual turnover) will be low with strong affective commitment. More importantly is the fact that greater affective commitment elicits greater investment in the organization from employees (Chen et al, 2020) in terms of creativity (Asif, Qing, Hwang, & Shi, 2019), energy and time (Chen et al, 2020). This is where nurse managers hope to maximize nurses' productivity and effectiveness for optimal nursing service care outcomes.…”

A behavior analysis of brazilian farmers based on sunk cost effects and prospect theory

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Did the 2011 Change to NFL Rookie Compensation Alter How Sunk Costs Affect Utilization?

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