Open AccessPATH ANALYSIS ON ESCALATION OF COMMITMENT OF INVESTORS IN DIFFERENT PROJECT SCENARIOS OF PPPS
Author(s) -
Qi Luo,
Renhong Gao,
Ji-Cai Liu,
Yahui Li
Publication year - 2022
Publication title -
international journal of strategic property management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.43
H-Index - 30
eISSN - 1648-9179
pISSN - 1648-715X
DOI - 10.3846/ijspm.2022.16477
Subject(s) - conscientiousness , path analysis (statistics) , business , affect (linguistics) , neuroticism , mechanism (biology) , corporate governance , psychology , personality , big five personality traits , finance , social psychology , computer science , extraversion and introversion , philosophy , communication , epistemology , machine learning
In public-private partnerships (PPPs), escalation of commitment (EOC) of investors often occurs when receiving negative feedback, leading to a great waste of resources and not conducive to the sustainable development of PPPs. The degree of project completion and decision-making responsibilities of investors with different conscientiousness and neuroticism may affect subsequent resource allocation and further influence their escalation behaviour. Thus, through scenario simulation, this paper constructs path analysis to illustrate the formation mechanism of EOC by investors with diverse conscientiousness and neuroticism in different degrees of decision-making responsibilities and project completion, in which confidence in completing the projects may present a mediating effect. The empirical results show that completion degree and decision-making responsibilities both positively affect investors’ EOC and that the interaction is significant. The impact mechanism of conscientiousness and neuroticism on EOC varies in different project scenarios. Then, some targeted recommendations are proposed to curb EOC. The findings provide scientific evidence for governments to conduct effective governance of EOC in PPPs.