Skip to main content

Stuck in the past: Why managers persist with new product failures

Publication ,  Journal Article
Biyalogorsky, E; Boulding, W; Staelin, R
Published in: Journal of Marketing
April 1, 2006

In this research, the authors examine the phenomenon of escalation bias in the context of managing new product introductions. In particular, they identify three general paths - Decision Involvement Inertia, Decision Involvement Distortion, and Belief Inertia Distortion - that can lead managers to escalate their commitments. The authors test the relative strength of these paths in driving observed escalation behavior. The results show that involvement with the initial decision, a key construct in numerous explanations for escalation behavior (e.g., agency theory, self-justification), is not a necessary condition to induce commitment to a losing course of action (i.e., escalation bias). Rather, the authors find that the driving force behind escalation behavior is improper use of initial positive beliefs in the face of negative new information. This insight has implications for the groundwork necessary for organizations to design systems, policies, and procedures to help them avoid the trap of escalation bias that is often associated with major strategic decisions. © 2006, American Marketing Association.

Duke Scholars

Altmetric Attention Stats
Dimensions Citation Stats

Published In

Journal of Marketing

DOI

ISSN

0022-2429

Publication Date

April 1, 2006

Volume

70

Issue

2

Start / End Page

108 / 121

Related Subject Headings

  • Marketing
  • 3507 Strategy, management and organisational behaviour
  • 3506 Marketing
  • 1506 Tourism
  • 1505 Marketing
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Biyalogorsky, E., Boulding, W., & Staelin, R. (2006). Stuck in the past: Why managers persist with new product failures. Journal of Marketing, 70(2), 108–121. https://doi.org/10.1509/jmkg.70.2.108
Biyalogorsky, E., W. Boulding, and R. Staelin. “Stuck in the past: Why managers persist with new product failures.” Journal of Marketing 70, no. 2 (April 1, 2006): 108–21. https://doi.org/10.1509/jmkg.70.2.108.
Biyalogorsky E, Boulding W, Staelin R. Stuck in the past: Why managers persist with new product failures. Journal of Marketing. 2006 Apr 1;70(2):108–21.
Biyalogorsky, E., et al. “Stuck in the past: Why managers persist with new product failures.” Journal of Marketing, vol. 70, no. 2, Apr. 2006, pp. 108–21. Scopus, doi:10.1509/jmkg.70.2.108.
Biyalogorsky E, Boulding W, Staelin R. Stuck in the past: Why managers persist with new product failures. Journal of Marketing. 2006 Apr 1;70(2):108–121.

Published In

Journal of Marketing

DOI

ISSN

0022-2429

Publication Date

April 1, 2006

Volume

70

Issue

2

Start / End Page

108 / 121

Related Subject Headings

  • Marketing
  • 3507 Strategy, management and organisational behaviour
  • 3506 Marketing
  • 1506 Tourism
  • 1505 Marketing