The Role of Issue Valence and Issue Capability in Determining Effort Investment

Abstract

How decision makers invest their effort among various issues is critical to organizational success (Ocasio 1997). The authors investigate the effects of issue valence and issue capability on how decision makers allocate effort to an issue. They develop hypotheses regarding these constructs and test them in three studies. Results show that in the condition of high capability, decision makers are more likely to invest effort in an issue that is negatively, rather than positively, framed. Conversely, with low capability, they are more likely to invest effort in an issue that is positively, rather than negatively, framed. Results also clarify the variable focus on upside potential and risk taking as two mechanisms that underlie this preference reversal.

Keywords: issue valence, issue capability, upside potential, risk taking