Main Article Content
Abstract
Managers play an important role in making the right decisions so that the company can survive and face unexpected situations such as the Covid-19 pandemic. This pandemic has left many business sectors struggling to survive hence managers need to make the right decisions according to current situations. A wrong decision can be caused by the action of a manager who justifies the decisions that havehave been made such as increasing their commitment to a project that has indicated failure. This can be referred to as commitment escalation or a person's tendency to continue a project despite the potential for failure. This study aims to determine the effect of adverse selection, framing, and the implementation of reward and punishment systems on the escalation of commitment by including the context of the Covid-19 pandemic. This study is experimental research with a 2x2x2 between and within subject design in the form of case problems distributed to undergraduate students majoring in accounting at Widya Mandala Catholic University Surabaya who have taken management accounting and financial management courses. The data obtained were processed using the ANOVA or Analysis of Variance. The results of this study indicate that adverse selection has marginally significant on commitment escalation. Framing has an impact on commitment escalation. Negative framing promotes higher commitment escalation than positive framing. The implementation of reward and punishment has no impact on commitment escalation. The implication of this study is framing plays an important role toward commitment escalation during the covid-19 pandemic. Managers have to seek positive information rather than negative information to make investment decisions during the covid-19 pandemic, to reduce commitment escalation.
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References
- Abatecola, G., Caputo, A., & Cristofaro, M. (2018). Reviewing cognitive distortions in managerial decision making: Toward an integrative co-evolutionary framework. Journal of Management Development, 37(5), 409-424.
- Anthony, R. N., & Govindarajan, V. (2012). Sistem Pengendalian Manajemen [Terjemahan] (edisi ke-11). Jakarta: Salemba Empat.
- Badan Pusat Statistik. (2021). Jumlah kunjungan wisman ke Indonesia bulan Juni 2021 mencapai 140,85 ribu kunjungan. Didapatkan dari https://www.bps.go.id/pressrelease/2021/08/02/1802/jumlah-kunjungan-wisman-ke-indonesia-bulan-juni-2021-mencapai-140-85-ribu-kunjungan.html
- Daft, R.L. (2014). Era Baru Manajemen [Terjemahan] (edisi ke-9). Jakarta: Salemba Empat.
- David, F.R., & David, F.R. (2016). Manajemen Strategik [Terjemahan] (edisi ke-15). Jakarta: Salemba Empat.
- Guo, W., & Cannella Jr, A. A. (2021). No Need to Know It All: Implications of COVID?19 for Corporate Communication Research. Journal of Management Studies, 58(5), 1421.
- Helmayunita, N. (2015). Pengaruh Adverse Selection, Kontrol Monitoring, Dan Penalaran Moral Individu Terhadap Perilaku Eskalasi Komitmen. Jurnal WRA, 3(1), 513–528.
- Kalmanovich-Cohen, H., Pearsall, M.J., & Christian, J.S. (2018). The effects of leadership change on team escalation of commitment. The Leadership Quarterly, 29(5), 597-608.
- Kessler, E.H. (Ed.). (2013). Encyclopedia of management theory. California: Sage Publications Inc.
- Moloi, T., & Marwala, T. (2017). Advanced Information and Knowledge Processing (edisi ke-1). Cham: Springer International Publishing.
- Muna, B. N., & Haris, L. (2018). Pengaruh pengendalian internal dan asimetri informasi terhadap kecenderungan kecurangan akuntansi. Jurnal Akuntansi, Ekonomi dan Manajemen Bisnis, 6(1), 35-44.
- Nahartyo, E., & I. Utami. 2015. Panduan praktis riset eksperimen. Jakarta: PT Indeks.
- Panjaitan, M. (2018). Pemberian penghargaan (reward), hukuman (punishment) dan prestasi kerja karyawan: Suatu kajian teoritis. Jurnal Ilmiah METHONOMI, 4(1), 93-100.
- Pramono, J. (2020). Pembangunan Wisata Tulungangung Terhambat Covid-19. Didapat dari https://jatimtimes.com/baca/213849/20200430/162500/pembangunan-wisata-tulungagung-terhambat-covid-19, 15 Agustus 2021, pukul 20.17 WIB.
- Pride, W.M., Hughes, R.J., & Kapoor, J.R. (2017). Pengantar Bisnis [Terjemahan] (edisi ke-11). Jakarta: Salemba Empat.
- Putri, C. M. (2018). Penerapan Skema Insentif, Tingkat Komitmen Organisasi dan Pengaruhnya Terhadap Escalation of Commitment. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan dan Akuntansi, 10(1), 59-70.
- Radianto, W.ED. (2018). Akuntansi Kepenlakuan: Memahami lebih dalam eskalasi komitmen. Surabaya: PT Revka Petra Media
- Ruggeri, K., Alí, S., Berge, M. L., Bertoldo, G., Bjørndal, L. D., Cortijos-Bernabeu, A., & Folke, T. (2020). Replicating patterns of prospect theory for decision under risk. Nature human behaviour, 4(6), 622-633.
- Sari, P., & Wirakusuma, M. (2016). Pengaruh adverse selection dan negative framing pada kecenderungan eskalasi komitmen. E-Jurnal Ekonomi dan Bisnis Universitas Udayana Bali, 5(3), 573-600.
- Schippers, M. C. (2021). Optimizing Decision-Making Processes in Times of COVID-19: Using Reflexivity to Counteract Information-Processing Failures. Frontiers in psychology, 12, 2261.
- Scott, W.R. (2015). Financial Accounting Theory (edisi ke-7). Toronto: Pearson.
- Selim, M. (2020). Escalation commitment in decision making and its possible effects in the long run. In 2020 International Conference on Decision Aid Sciences and Application, 686-691.
- Soma, A. A., & Restuti, M. M. D. (2017). Pengaruh informasi investasi, job rotation dan kondisi adverse selection terhadap eskalasi komitmen. Simposium Nasional Akuntansi XX Jember, 1–25.
- Sulistiyo, H. (2019). Eskalasi komitmen terhadap proyek-proyek yang tidak menguntungkan: Pengaruh latar belakang pendidikan dan pengungkapan informasi sebagai pemodelan variabel. Eqien: Jurnal Ekonomi dan Bisnis, 6(2), 64-73.
- Suwardjono. (2014). Teori Akuntansi Perekayasaan Pelaporan Keuangan (edisi ke-8). Yogyakarta: BPFE-Yogyakarta.
- Yusra, M., & Atika, S. (2017). Pengaruh Negative Framing dan Adverse Selection Terhadap Pengambilan Keputusan Eskalasi Komitmen. Jurnal Akuntansi dan Keuangan, 5(2), 91-98.
- Wong, K. F. E., & Kwong, J. Y. Y. (2018). Resolving the Judgment and Decision-Making Paradox Between Adaptive Learning and Escalation of Commitment. Management Science, 64(4), 1911–1925.
References
Abatecola, G., Caputo, A., & Cristofaro, M. (2018). Reviewing cognitive distortions in managerial decision making: Toward an integrative co-evolutionary framework. Journal of Management Development, 37(5), 409-424.
Anthony, R. N., & Govindarajan, V. (2012). Sistem Pengendalian Manajemen [Terjemahan] (edisi ke-11). Jakarta: Salemba Empat.
Badan Pusat Statistik. (2021). Jumlah kunjungan wisman ke Indonesia bulan Juni 2021 mencapai 140,85 ribu kunjungan. Didapatkan dari https://www.bps.go.id/pressrelease/2021/08/02/1802/jumlah-kunjungan-wisman-ke-indonesia-bulan-juni-2021-mencapai-140-85-ribu-kunjungan.html
Daft, R.L. (2014). Era Baru Manajemen [Terjemahan] (edisi ke-9). Jakarta: Salemba Empat.
David, F.R., & David, F.R. (2016). Manajemen Strategik [Terjemahan] (edisi ke-15). Jakarta: Salemba Empat.
Guo, W., & Cannella Jr, A. A. (2021). No Need to Know It All: Implications of COVID?19 for Corporate Communication Research. Journal of Management Studies, 58(5), 1421.
Helmayunita, N. (2015). Pengaruh Adverse Selection, Kontrol Monitoring, Dan Penalaran Moral Individu Terhadap Perilaku Eskalasi Komitmen. Jurnal WRA, 3(1), 513–528.
Kalmanovich-Cohen, H., Pearsall, M.J., & Christian, J.S. (2018). The effects of leadership change on team escalation of commitment. The Leadership Quarterly, 29(5), 597-608.
Kessler, E.H. (Ed.). (2013). Encyclopedia of management theory. California: Sage Publications Inc.
Moloi, T., & Marwala, T. (2017). Advanced Information and Knowledge Processing (edisi ke-1). Cham: Springer International Publishing.
Muna, B. N., & Haris, L. (2018). Pengaruh pengendalian internal dan asimetri informasi terhadap kecenderungan kecurangan akuntansi. Jurnal Akuntansi, Ekonomi dan Manajemen Bisnis, 6(1), 35-44.
Nahartyo, E., & I. Utami. 2015. Panduan praktis riset eksperimen. Jakarta: PT Indeks.
Panjaitan, M. (2018). Pemberian penghargaan (reward), hukuman (punishment) dan prestasi kerja karyawan: Suatu kajian teoritis. Jurnal Ilmiah METHONOMI, 4(1), 93-100.
Pramono, J. (2020). Pembangunan Wisata Tulungangung Terhambat Covid-19. Didapat dari https://jatimtimes.com/baca/213849/20200430/162500/pembangunan-wisata-tulungagung-terhambat-covid-19, 15 Agustus 2021, pukul 20.17 WIB.
Pride, W.M., Hughes, R.J., & Kapoor, J.R. (2017). Pengantar Bisnis [Terjemahan] (edisi ke-11). Jakarta: Salemba Empat.
Putri, C. M. (2018). Penerapan Skema Insentif, Tingkat Komitmen Organisasi dan Pengaruhnya Terhadap Escalation of Commitment. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan dan Akuntansi, 10(1), 59-70.
Radianto, W.ED. (2018). Akuntansi Kepenlakuan: Memahami lebih dalam eskalasi komitmen. Surabaya: PT Revka Petra Media
Ruggeri, K., Alí, S., Berge, M. L., Bertoldo, G., Bjørndal, L. D., Cortijos-Bernabeu, A., & Folke, T. (2020). Replicating patterns of prospect theory for decision under risk. Nature human behaviour, 4(6), 622-633.
Sari, P., & Wirakusuma, M. (2016). Pengaruh adverse selection dan negative framing pada kecenderungan eskalasi komitmen. E-Jurnal Ekonomi dan Bisnis Universitas Udayana Bali, 5(3), 573-600.
Schippers, M. C. (2021). Optimizing Decision-Making Processes in Times of COVID-19: Using Reflexivity to Counteract Information-Processing Failures. Frontiers in psychology, 12, 2261.
Scott, W.R. (2015). Financial Accounting Theory (edisi ke-7). Toronto: Pearson.
Selim, M. (2020). Escalation commitment in decision making and its possible effects in the long run. In 2020 International Conference on Decision Aid Sciences and Application, 686-691.
Soma, A. A., & Restuti, M. M. D. (2017). Pengaruh informasi investasi, job rotation dan kondisi adverse selection terhadap eskalasi komitmen. Simposium Nasional Akuntansi XX Jember, 1–25.
Sulistiyo, H. (2019). Eskalasi komitmen terhadap proyek-proyek yang tidak menguntungkan: Pengaruh latar belakang pendidikan dan pengungkapan informasi sebagai pemodelan variabel. Eqien: Jurnal Ekonomi dan Bisnis, 6(2), 64-73.
Suwardjono. (2014). Teori Akuntansi Perekayasaan Pelaporan Keuangan (edisi ke-8). Yogyakarta: BPFE-Yogyakarta.
Yusra, M., & Atika, S. (2017). Pengaruh Negative Framing dan Adverse Selection Terhadap Pengambilan Keputusan Eskalasi Komitmen. Jurnal Akuntansi dan Keuangan, 5(2), 91-98.
Wong, K. F. E., & Kwong, J. Y. Y. (2018). Resolving the Judgment and Decision-Making Paradox Between Adaptive Learning and Escalation of Commitment. Management Science, 64(4), 1911–1925.