Excerpt:
Galinsky said his research shows a failed course of action by business leadership is often perpetuated by new leadership that shares a “psychological connection” to its predecessor.
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“The idea of an insider versus an outsider depends on the current state of the organization,” he said.
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Galinsky’s study, “Vicarious entrapment: Your sunk costs, my escalation of commitment” will be published in an upcoming issue of the Journal of Experimental Social Psychology. Galinsky said his research centered on the idea of “escalation of commitment,” a theory that was pioneered in the 1970s by former NU Psychology Prof. Barry Staw.
Escalation of commitment is “throwing good money after a bad initial decision,” said Brian Gunia, a fourth-year Kellogg doctoral candidate who assisted Galinsky in his research.
“We were looking at cases in which the initial decision-maker has done something wrong,” Gunia said, “And you, as second decision-maker, are stepping into the decision.”
Gunia said their research showed when the second decision-maker had some sort of “psychological connection” to the first decision-maker, he was “more likely to escalate on (the initial decision maker’s) behalf,” even if it meant following a failed course of action.
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