Final answer:
The tendency for managers to continue investing in a project despite poor performance is known as escalation of commitment, which is not to be confused with process commitment, entrepreneurial orientation, or improvement orientation. Option B is correct.
Step-by-step explanation:
The tendency for managers to irrationally stick with an investment even when investment criteria are not being met is known as escalation of commitment. This behavior is characterized by continuing to invest in a project or decision despite evidence suggesting that it's not yielding the desired results.
The phenomenon can be linked to a desire to justify previous investments or to avoid admitting that a decision was flawed, leading to further investment in the failing venture in the hope of turning it around.
It can be contrasted with process commitment, which refers to adhering to the steps of a predefined process, entrepreneurial orientation, which involves taking innovative and risk-tolerant approaches to business, and improvement orientation, which focuses on continuous refinement and enhancement of business practices.
The tendency for managers to irrationally stick with an investment even when investment criteria are not being met is called escalation of commitment. This refers to the persistent commitment to a failing course of action. Even when it becomes clear that the investment is not delivering the desired returns, managers may continue to invest more time, money, and resources into the project.