Sunday, 28 October 2012

PENGUJIAN EFEK PEMBINGKAIAN SEBAGAI DETERMINAN ESKALASI KOMITMEN DALAM KEPUTUSAN INVESTASI : DAMPAK DARI PENGALAMAN KERJA


PENGUJIAN EFEK PEMBINGKAIAN SEBAGAI DETERMINAN ESKALASI KOMITMEN DALAM KEPUTUSAN INVESTASI : DAMPAK DARI PENGALAMAN KERJA

Tri Ramaraya Koroy
STIE Nasional Banjarmasin 

ABSTRACT

Prior studies have shown that the framing effect is one of determinant in explaining decisions to escalate commitment to failing projects. Such studies, however, have not considered whether experience moderates the framing effect on escalation of commitment. This study reports the results of an experiment in which the effect of decision frame of investment performance with negative feedback informatian on judgment to continue project of experienced subjects is compared to inexperienced subjects.  Forty six Indonesian experienced managers and forty seven accounting students participated in this experiment. Two conditions based on prospect theory (negative framing and positive framing) manipulated, and two conditions of business experience, crossed between subjects. The experiment reaffirms that decision frame does not have effect on judgment of experienced subject but those frame indeed have effect on judgment to continue project of inexperienced subjects. This result suggest that framing effect as drawn from prospect theory is one of explanatory power of escalation of commitment, but it can not generalized to real-world business settings.


Key words: escalation of commitment, framing effect, prospect theory, experience

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