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Vetter, Johannes; Benlian, Alexander ORCID logoORCID: https://orcid.org/0000-0002-7294-3097 and Hess, Thomas ORCID logoORCID: https://orcid.org/0000-0003-3969-7477 (2010): Sunk Cost and Target Achievement Biases in Subsequent IS-Outsourcing Decisions. 18th European Conference on Information Systems, ECIS 2010, Pretoria, South Africa, June 7-9, 2010. In: ECIS 2010 Proceedings,

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Early IS-outsourcing research is mainly based on three assumptions: the research results are normative, the decision maker acts in a completely rational manner, and the decision is made at a single point in time. Within the last decade, some of these assumptions have been softened, and studies have attempted to broaden the research by investigating the IS-outsourcing decision process from a more descriptive point of view. Our aim is to extend IS-outsourcing research from a static and mostly rational view to a continuous view with decisions that are influenced by non-rational biases. In this research-in-progress paper, which delineates the conceptual foundation for a larger ongoing research project, we present a research model that depicts some of these non-rational biases based on path dependencies between subsequent decisions. The model states two propositions that can be logically derived from cognitive dissonance and prospect theory: sunk cost influences the adherence of a decision maker to the chosen course of action, and the degree of target achievement of a previous decision influences the risk tolerance of the decision maker in an ensuing decision. An upcoming empirical study using an experimental setting will be conducted to confirm these hypotheses.

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