Rational Versus Intuitive GatekeepingEscalation of Commitment in the Front End of NPD

Question 1

What is “Eliëns, R., Eling, K., Gelper, S., & Langerak, F. (2018). Rational Versus Intuitive Gatekeeping: Escalation of Commitment in the Front End of NPD” about?

Answer 1

The article investigates the escalation of commitment in the front end of NPD—a phase where ambiguity is high and stopping unpromising projects is crucial. It focuses on how a gatekeeper’s thinking style (rational vs. intuitive) influences the escalation of commitment:
* Rational thinking: Deliberate and analytical, using rules and argumentation.
* Intuitive thinking: Unconscious, emotion-driven, and holistic.

Question 2

What is “rational thinking”?

Answer 2

Deliberate and analytical, using rules and argumentation. Reduces escalation by focusing on structured decision-making.
Minimizes emotional biases like regret or overconfidence.

Question 3

What is “intuitive thinking”?

Answer 3

Unconscious, emotion-driven, and holistic. Offers flexibility in handling complexity and uncertainty. Risks emotional and biased decisions, leading to higher escalation.

Question 4

What is “escalation of commitment”?

Answer 4

when it is clear early on that an NPD project should be aborted but is carried on nonetheless; occurs when gatekeepers continue to invest in a failing project, ignoring clear signals to stop; **has to be preceded by at least one initial positive decision, where the belief that the right path has been chosen was taken

Question 5

What are “gatekeepers”?

Answer 5

the managers who review the NPD project at each decision gate

Question 6

What are the two theories that explain escalation behavior in NPD, in “Eliëns, R., Eling, K., Gelper, S., & Langerak, F. (2018). Rational Versus Intuitive Gatekeeping: Escalation of Commitment in the Front End of NPD”?

Answer 6

1) belief inertia distortion
2) self-justification

Question 7

What is “belief inertia distortion”?

Answer 7

this belief refers to the gatekeeper’s prior and current belief about the potential of an NPD project; dissonance at a later point in the NPD process may lead the gatekeeper to distort or disregard conflicting info

Question 8

What is “self-justification”?

Answer 8

self-justification reinforces escalation of commitment in NPD gatekeepers who stay on a committee from beginning to end and make repeated decisions on the same project, as is common practice in most firms; gatekeepers are unable to admit earlier decisions were faulty and continue to allocate resources; can be reinforced by feelings of responsibility

Question 9

Why do we focus on the front end of NPD, rather than later stages, to eliminate escalation of commitment?

Question 10

What are the managerial implications of “Eliëns, R., Eling, K., Gelper, S., & Langerak, F. (2018). Rational Versus Intuitive Gatekeeping: Escalation of Commitment in the Front End of NPD”?

Answer 10

1. Rational Thinking in Gatekeeping:
   o Firms should encourage gatekeepers to adopt rational thinking styles for NPD decisions.
   o Rationality reduces emotional influences and enhances adherence to structured evaluation criteria.
2. Selection and Training:
   o Select gatekeepers predisposed to rationality using tools like the Rational Experiential Inventory (REI).
   o Train current gatekeepers in rational decision-making frameworks.
3. Process Improvements:
   o Design formalized decision processes with clear criteria and templates.
   o Incorporate collaborative gate reviews to mitigate individual biases.

Question 11

What is the conclusion of “Eliëns, R., Eling, K., Gelper, S., & Langerak, F. (2018). Rational Versus Intuitive Gatekeeping: Escalation of Commitment in the Front End of NPD”?

Answer 11

Rational thinking significantly outperforms intuition in reducing escalation of commitment during the front end of NPD. While escalation of commitment occurred with both types of thinking and intuition has its merits, structured decision-making processes and rational frameworks are critical for avoiding costly errors in resource allocation. This finding underscores the importance of cultivating rationality through selection, training, and organizational processes.

Question 12

What are the theoretical contributions of “Eliëns, R., Eling, K., Gelper, S., & Langerak, F. (2018). Rational Versus Intuitive Gatekeeping: Escalation of Commitment in the Front End of NPD”?

Answer 12

1. Dual Processing Theory in NPD:
   o Contrasts rational and intuitive styles, showing the superiority of rational thinking in reducing escalation of commitment.
2. Escalation in Front-End NPD:
   o Challenges the assumption that escalation primarily occurs after heavy investments, showing it begins early in the NPD process.
3. Cognitive Biases:
   o Highlights emotional biases (e.g., regret, overconfidence) as critical drivers of escalation under intuitive decision-making.

Question 13

What is “dual process theory”?

Answer 13

this theory explains cognition to consist of two distinct components, rationality and intuition, which shape the decision making