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AbstractOne of the most challenging decisions that a manager must confront is whether to continue or abandon a troubled project. Published studies suggest that failing software projects are often allowed to continue for too long before appropriate management action is taken to discontinue or redirect the efforts. The level of sunk cost associated with such projects has been offered as one explanation for this escalation of commitment behavior. What prior studies fail to consideris how concepts from risk-taking theory (such as risk propensity and risk perception) affect decision makers' willingness to continue a project under MIS Quarterly Vol. 24 No. 2, pp. 299-325/June 2000 299 This content downloaded from 172.12.137.157 on Thu, 11 Sep 2014 17:23:05 PM All use subject to JSTOR Terms and Conditions Keil et al./Culture & Escalation of Commitment conditions of sunk cost. To better understand factors that may cause decision makers to continue such projects, this study examines the level of sunk cost together with the risk propensity and risk perception of decision makers. These factors are assessed for cross-cultural robustness using matching laboratory experiments carried out in three cultures (Finland, the Netherlands, and Singapore).With a wider set of explanatory factors than prior studies, we could account for a higher amount of variance in decision makers' willingness to continue a project. The level of sunk cost and the risk perception of decision makers contributed significantly to their willingness to continue a project. Moreover, the risk propensity of decision makers was inversely related to risk perception. This inverse relationship was significantly stronger in Singapore (a low uncertainty avoidance culture) than in Finland and the Netherlands (high uncertainty avoidance cultures). These results reveal that some factors behind decision makers'willingness to continue a project are consistent across cultures while others may be culture-sensitive.Implications of these results for further research and practice are discussed.
In this paper, we present results from a study of mobile ticketing service adoption in public transportation. The theoretical background of the study is based on technology adoption and trust theories, which are augmented with concepts of mobile use context and mobility. Our empirical findings from analyses of a survey data suggest that compatibility of the mobile ticketing service with consumer behavior is a major determinant of adoption. Mobility and contextual factors, including budget constraints, availability of other alternatives, and time pressure in the service use situation were also found to have a strong effect on the adoption decision. Our findings suggest that contextual and mobile service-specific features are important determinants of mobile service adoption and should thus be integrated into the traditional adoption models.
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