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The Interaction Of Intuition And Rationality During Escalated Npd Decisions: An Investigation Of Decision-Makers’ Affective States

Author

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  • TOBIAS ROETH

    (Technology, Innovation Management and Entrepreneurship, University of Kassel, Germany)

  • PATRICK SPIETH

    (Technology, Innovation Management and Entrepreneurship, University of Kassel, Kleine Rosenstraße 3, 34117 Kassel, Germany)

  • VERENA JOACHIM

    (Technology, Innovation Management and Entrepreneurship, University of Kassel, Germany)

Abstract

Decision-makers often struggle to terminate unsuccessful new product development (NPD) projects, so that escalating commitment occurs. Although research shows that rational and intuitive decision-making styles (DMS) as well as a decision-maker’s affective state determines the performance of NPD decisions, little is known about their influences on escalating commitment. By applying the affect infusion model in an experimental study, we investigate how a decision-maker’s affective state influence their escalating commitment by focusing on their use of a rational and an intuitive DMS. Our findings, based on 366 respondents, show that a rational DMS is unable to reduce commitment escalation. Surprisingly, an intuitive DMS is able to reduce a decision-maker’s commitment in the case of a positive affect, whereas a rational DMS increases their commitment in the case of a negative affect. Thus, our interdisciplinary research on affect and decision-making extends and contributes to research into decision-making during the NPD process as well as into escalating commitment.

Suggested Citation

  • Tobias Roeth & Patrick Spieth & Verena Joachim, 2019. "The Interaction Of Intuition And Rationality During Escalated Npd Decisions: An Investigation Of Decision-Makers’ Affective States," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-31, June.
    • Handle: RePEc:wsi:ijimxx:v:24:y:2019:i:04:n:s1363919620500334
    DOI: 10.1142/S1363919620500334
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    Cited by:

    1. Schweitzer, Fiona & Mai, Robert, 2021. "The double-edged sword of intricate idea enactment in product development," Journal of Business Research, Elsevier, vol. 132(C), pages 392-402.

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