Role of information on outsourcing decisions.

The irrationality of the decision-maker has been explored in various situations such as escalation of commitment (that is, the allocation of additional resources to a failing course of action) and loss aversion. This research aims to study the decision-making behaviour of managers in an outsourcing...

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Main Authors: Cheong, Wyman Yew Meng., Gwee, Andy Yong Wei., Chong, Ying Wei.
Other Authors: Chan, Sow Lin
Format: Final Year Project (FYP)
Published: 2008
Subjects:
Online Access:http://hdl.handle.net/10356/10841
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author Cheong, Wyman Yew Meng.
Gwee, Andy Yong Wei.
Chong, Ying Wei.
author2 Chan, Sow Lin
author_facet Chan, Sow Lin
Cheong, Wyman Yew Meng.
Gwee, Andy Yong Wei.
Chong, Ying Wei.
author_sort Cheong, Wyman Yew Meng.
collection NTU
description The irrationality of the decision-maker has been explored in various situations such as escalation of commitment (that is, the allocation of additional resources to a failing course of action) and loss aversion. This research aims to study the decision-making behaviour of managers in an outsourcing context. Specifically, four independent variables are manipulated to investigate their effects on outsourcing decision. They are: sunk cost, the magnitude of sunk cost with respect to net savings resulting from outsourcing, manager’s responsibility for the historical investment and the performance of the current operation under consideration for outsourcing. A hypothetical outsourcing case scenario was developed to test the above variables. It was administered to a total of 342 third year accountancy undergraduates from Nanyang Technological University. The findings suggested that the presence of sunk cost information and the higher proportion of sunk cost to net savings resulted in a reduced likelihood of making
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spelling ntu-10356/108412023-05-19T05:44:54Z Role of information on outsourcing decisions. Cheong, Wyman Yew Meng. Gwee, Andy Yong Wei. Chong, Ying Wei. Chan, Sow Lin Nanyang Business School DRNTU::Business::Management::Contracting The irrationality of the decision-maker has been explored in various situations such as escalation of commitment (that is, the allocation of additional resources to a failing course of action) and loss aversion. This research aims to study the decision-making behaviour of managers in an outsourcing context. Specifically, four independent variables are manipulated to investigate their effects on outsourcing decision. They are: sunk cost, the magnitude of sunk cost with respect to net savings resulting from outsourcing, manager’s responsibility for the historical investment and the performance of the current operation under consideration for outsourcing. A hypothetical outsourcing case scenario was developed to test the above variables. It was administered to a total of 342 third year accountancy undergraduates from Nanyang Technological University. The findings suggested that the presence of sunk cost information and the higher proportion of sunk cost to net savings resulted in a reduced likelihood of making 2008-09-24T07:48:08Z 2008-09-24T07:48:08Z 2000 2000 Final Year Project (FYP) http://hdl.handle.net/10356/10841 Nanyang Technological University application/pdf
spellingShingle DRNTU::Business::Management::Contracting
Cheong, Wyman Yew Meng.
Gwee, Andy Yong Wei.
Chong, Ying Wei.
Role of information on outsourcing decisions.
title Role of information on outsourcing decisions.
title_full Role of information on outsourcing decisions.
title_fullStr Role of information on outsourcing decisions.
title_full_unstemmed Role of information on outsourcing decisions.
title_short Role of information on outsourcing decisions.
title_sort role of information on outsourcing decisions
topic DRNTU::Business::Management::Contracting
url http://hdl.handle.net/10356/10841
work_keys_str_mv AT cheongwymanyewmeng roleofinformationonoutsourcingdecisions
AT gweeandyyongwei roleofinformationonoutsourcingdecisions
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