The role of a bad news reporter in information technology project escalation: a deaf effect perspective

This paper presents a study of the deaf effect response to bad news reporting in an IT project management context. Using a mixed method approach that included both quantitative and qualitative data obtained through a laboratory experiment, our findings suggest that individuals turn a deaf ear to bad news reporting when bad news is received from a person who is not role prescribed to report bad news or is not perceived to be credible. Further, it was found that perceived message relevance and risk perception mediate these relationships. We also found that men are more willing to take risk, and also less likely to perceive risk compared to women in IT project escalation situations. Consequently, men are more likely to turn a deaf ear, thus causing IT project escalation to occur. In this paper, we discuss several implications of the findings of this study for both research and practice.

[1]  D. Hickson A Convergence in Organization Theory , 1966 .

[2]  Sidney Rosen,et al.  News Valence and Available Recipient as Determinants of News Transmission , 1972 .

[3]  J. Bettman Perceived Risk and Its Components: A Model and Empirical Test , 1973 .

[4]  John Child,et al.  Strategies of Control and Organizational Behavior , 1973 .

[5]  A. Tversky,et al.  Judgment under Uncertainty: Heuristics and Biases , 1974, Science.

[6]  John H. Murphy,et al.  Are Students Real People , 1974 .

[7]  Barry M. Staw,et al.  Knee-deep in the Big Muddy: A study of escalating commitment to a chosen course of action. , 1976 .

[8]  Edgar C. O'Neal,et al.  Reluctance to Transmit Bad News When the Recipient Is Unknown: Experiments in Five Nations. , 1979 .

[9]  A. Tversky,et al.  Prospect theory: analysis of decision under risk , 1979 .

[10]  S. Chaiken Heuristic versus systematic information processing and the use of source versus message cues in persuasion. , 1980 .

[11]  Alice M. Tybout,et al.  Designing Research for Application , 1981 .

[12]  A. Tversky,et al.  Judgment under Uncertainty , 1982 .

[13]  Alice M. Tybout,et al.  The Concept of External Validity , 1982 .

[14]  Karl E. Weick,et al.  An Assessment Of Laboratory Experiments In Accounting , 1982 .

[15]  R. Yin Case Study Research: Design and Methods , 1984 .

[16]  H. Thomas,et al.  Toward a Contingency Model of Strategic Risk Taking , 1985 .

[17]  Marcia P. Miceli,et al.  Potential Predictors of Whistle-Blowing: A Prosocial Behavior Perspective , 1985 .

[18]  H. Arkes,et al.  The Psychology of Sunk Cost , 1985 .

[19]  William Remus,et al.  Graduate students as surrogates for managers in experiments on business decision making , 1986 .

[20]  Glen Whyte,et al.  Escalating Commitment to a Course of Action: A Reinterpretation , 1986 .

[21]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[22]  Lana F. Rakow Rethinking Gender Research in Communication , 1986 .

[23]  Neal Schmitt,et al.  Student Guinea Pigs: Porcine Predictors and Particularistic Phenomena , 1987 .

[24]  Michael G. Bowen The Escalation Phenomenon Reconsidered: Decision Dilemmas or Decision Errors? , 1987 .

[25]  Anil K. Makhija,et al.  Throwing good money after bad?: Nuclear power plant investment decisions and the relevance of sunk costs☆ , 1988 .

[26]  F. Schoorman,et al.  Escalation bias in performance appraisals: An unintended consequence of supervisor participation in hiring decisions. , 1988 .

[27]  Irving M. Lane,et al.  A note on the role of laboratory methodologies in applied behavioural research: Don't throw out the baby with the bath water , 1988 .

[28]  Jan-Bernd Lohmöller,et al.  Latent Variable Path Modeling with Partial Least Squares , 1989 .

[29]  Jonathan S. Evans,et al.  Bias in human reasoning , 1990 .

[30]  C. Roser,et al.  Involvement, Attention, and Perceptions of Message Relevance in the Response to Persuasive Appeals , 1990 .

[31]  H. Garland Throwing Good Money After Bad: The Effect of Sunk Costs on the Decision to Escalate Commitment to an Ongoing Project , 1990 .

[32]  Stephanie Newport,et al.  Effects of absolute and relative sunk costs on the decision to persist with a course of action , 1991 .

[33]  Chester A. Schriesheim,et al.  Can ipsative and single-item measures produce erroneous results in field studies of French and Raven's (1959) five bases of power? An empirical investigation. , 1991 .

[34]  Amy L. Pablo,et al.  Reconceptualizing the Determinants of Risk Behavior , 1992 .

[35]  Marcia P. Miceli,et al.  Blowing the whistle : the organizational and legal implications for companies and employees , 1993 .

[36]  J. Brockner The Escalation of Commitment to a Failing Course of Action: Toward Theoretical Progress , 1992 .

[37]  Donald E. Conlon,et al.  The Role of Project Completion Information in Resource Allocation Decisions , 1993 .

[38]  J M Youngblut,et al.  Single-item indicators in nursing research. , 1993, Research in nursing & health.

[39]  J. M. Cortina,et al.  What Is Coefficient Alpha? An Examination of Theory and Applications , 1993 .

[40]  Jose Maria Cortina What is coefficient alpha , 1993 .

[41]  P. Harrison,et al.  IMPACT OF 'ADVERSE SELECTION' ON MANAGERS' PROJECT EVALUATION DECISIONS , 1993 .

[42]  Barry M. Staw,et al.  ORGANIZATIONAL ESCALATION AND EXIT: LESSONS FROM THE SHOREHAM NUCLEAR POWER PLANT , 1993 .

[43]  P. Powell,et al.  Decision Making, Risk and Gender: Are Managers Different? , 1994 .

[44]  Peter R. Dickson,et al.  How Believing in Ourselves Increases Risk Taking: Perceived Self‐Efficacy and Opportunity Recognition , 1994 .

[45]  M. Miceli,et al.  Effective-Whistle Blowing , 1995 .

[46]  Lauren G. Block,et al.  When to Accentuate the Negative: The Effects of Perceived Efficacy and Message Framing on Intentions to Perform a Health-Related Behavior , 1995 .

[47]  M. Keil,et al.  The effects of sunk cost and project completion on information technology project escalation , 1995 .

[48]  S. Sitkin,et al.  Determinants of Risky Decision-Making Behavior: A Test of the Mediating Role of Risk Perceptions and Propensity , 1995 .

[49]  Mark Keil,et al.  Pulling the Plug: Software Project Management and the Problem of Project Escalation , 1995, MIS Q..

[50]  Timo Saarinen,et al.  Understanding Runaway Information Technology Projects: Results from an International Research Program Based on Escalation Theory , 1994, J. Manag. Inf. Syst..

[51]  Barry M. Staw,et al.  Organizational decision making: The escalation of commitment: An update and appraisal , 1996 .

[52]  D. S. Sivia,et al.  Data Analysis , 1996, Encyclopedia of Evolutionary Psychological Science.

[53]  Rajiv Sabherwal,et al.  Determinants of Commitment to Information Systems Development: A Longitudinal Investigation , 1996, MIS Q..

[54]  J. P. Wanous,et al.  Overall job satisfaction: how good are single-item measures? , 1997, The Journal of applied psychology.

[55]  Isin Guler Throwing good money after Bad , 2007 .

[56]  Wynne W. Chin The partial least squares approach for structural equation modeling. , 1998 .

[57]  D. A. Kenny,et al.  Data analysis in social psychology. , 1998 .

[58]  Mark Keil,et al.  Turning Around Troubled Software Projects: An Exploratory Study of the Deescalation of Commitment to Failing Courses of Action , 1999, J. Manag. Inf. Syst..

[59]  Alice M. Tybout,et al.  A vision of theory, research, and the future of business schools , 1999 .

[60]  William D. Schafer,et al.  Gender differences in risk taking: A meta-analysis. , 1999 .

[61]  J. Lynch Theory and external validity , 1999 .

[62]  Bernard C. Y. Tan,et al.  A Cross-Cultural Study on Escalation of Commitment Behavior in Software Projects , 2000, MIS Q..

[63]  Frances J. Milliken,et al.  Organizational Silence: A Barrier to Change and Development in a Pluralistic World , 2000 .

[64]  Mark Keil,et al.  Why Software Projects Escalate: An Empirical Analysis and Test of Four Theoretical Models , 2000, MIS Q..

[65]  Mark Keil,et al.  An investigation of risk perception and risk propensity on the decision to continue a software development project , 2000, J. Syst. Softw..

[66]  H. Bussell Qualitative Methods and Analysis in Organizational Research: A Practical Guide , 2000 .

[67]  R. Peterson On the Use of College Students in Social Science Research: Insights from a Second‐Order Meta‐analysis , 2001 .

[68]  Mark Keil,et al.  Blowing the whistle on troubled software projects , 2001, CACM.

[69]  Mark Keil,et al.  Keeping Mum as the Project Goes Under: Toward an Explanatory Model , 2001, J. Manag. Inf. Syst..

[70]  Henry Moon,et al.  Looking forward and looking back: integrating completion and sunk-cost effects within an escalation-of-commitment progress decision. , 2001, The Journal of applied psychology.

[71]  Hans Wissema Driving through red lights: How warning signals are missed or ignored , 2002 .

[72]  P. Shrout,et al.  Mediation in experimental and nonexperimental studies: new procedures and recommendations. , 2002, Psychological methods.

[73]  M. Miceli,et al.  What Makes Whistle-Blowers Effective? Three Field Studies , 2002 .

[74]  Mark Keil,et al.  The reluctance to report bad news on troubled software projects: a theoretical model , 2003, Inf. Syst. J..

[75]  Detmar W. Straub,et al.  Validation Guidelines for IS Positivist Research , 2004, Commun. Assoc. Inf. Syst..

[76]  Chanthika Pornpitakpan The Persuasiveness of Source Credibility: A Critical Review of Five Decades' Evidence , 2004 .

[77]  Kin Fai Ellick Wong The role of risk in making decisions under escalation situations , 2005 .

[78]  E. Soane,et al.  Personality and domain‐specific risk taking , 2005 .

[79]  Michael J. Cuellar,et al.  The Deaf Effect Response to Bad News Reporting in Information Systems Projects , 2006 .

[80]  A. Mindlin The final voyage. , 2006, Michigan medicine.

[81]  A. Tversky,et al.  Prospect theory: an analysis of decision under risk — Source link , 2007 .

[82]  Kin Fai Ellick Wong,et al.  The role of anticipated regret in escalation of commitment. , 2007, The Journal of applied psychology.

[83]  Mark Keil,et al.  The effects of optimistic and pessimistic biasing on software project status reporting , 2007, Inf. Manag..

[84]  Kristopher J Preacher,et al.  Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models , 2008, Behavior research methods.

[85]  Theo K. Dijkstra,et al.  Handbook of partial least squares. Concepts, methods and applications in marketing and related fields , 2008 .

[86]  Jan Pries-Heje,et al.  Making IT Project De-Escalation Happen: An Exploration into Key Roles , 2008, J. Assoc. Inf. Syst..

[87]  Mark Keil,et al.  Overcoming the Mum Effect in IT Project Reporting: Impacts of Fault Responsibility and Time Urgency , 2008, J. Assoc. Inf. Syst..

[88]  Jörg Henseler,et al.  Handbook of Partial Least Squares: Concepts, Methods and Applications , 2010 .

[89]  Mark Keil,et al.  Organizational Silence and Whistle-Blowing on IT Projects: An Integrated Model , 2009, Decis. Sci..

[90]  Charalambos L. Iacovou,et al.  Selective Status Reporting in Information Systems Projects: A Dyadic-Level Investigation , 2009, MIS Q..

[91]  Melinda Korzaan,et al.  Individual characteristics and the intention to continue project escalation , 2009, Comput. Hum. Behav..

[92]  Sweta Sneha,et al.  Toward a Theory of Whistleblowing Intentions: A Benefit-to-Cost Differential Perspective , 2010, Decis. Sci..

[93]  Joel Brockner,et al.  Entrapment in Escalating Conflicts: A Social Psychological Analysis , 2011 .

[94]  B. Flyvbjerg,et al.  Why Your IT Project May Be Riskier than You Think , 2011 .

[95]  G. Casper,et al.  Single-item indicators in nursing research. Research in Nursing & Health, 16, 459-465. 1993. , 2011 .

[96]  Jijie Wang,et al.  The Impact Of Relationships And Confucian Ethics On Chinese Employees' Whistle-Blowing Willingness In Software Projects , 2011, Pacific Asia Conference on Information Systems.

[97]  Melinda Korzaan,et al.  The Influence Of Commitment To Project Objectives In Information Technology (IT) Projects , 2011, BIS 2011.

[98]  Sylwia Męcfal Recenzja książki. Robert K. yin, Case Study Research. Design and Methods (fourth Edition), thousand Oaks, CA: Sage Publications, 2009 , 2012 .

[99]  DEAF EFFECT IN ESCALATION OF IS-PROJECTS: AN EXPLORATORY MULTI-CASESTUDY ON CAUSES AND AUDITOR- MANAGER INTERACTION , 2012 .