Abstract

Escalation of commitment research has taken a predominantly psychological view in which self-justification theories propose that individuals escalate to prove the rationality of their initial decision to themselves and others. Our study complements this research by answering the call for research on the social determinants of escalation. Investigating how social pressure from one’s team can increase the likelihood of escalation, we theoretically discuss and empirically demonstrate how theories of self-regulation can accelerate or decelerate escalation of commitment in an entrepreneurial context.

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