Signaler Credibility, Signal Susceptibility, and Relative Reliance on Signals: How Stakeholders Change their Evaluative Processes After Violation of Expectations and Rehabilitative Efforts

Gomulya, David M.; Mishina, Yuri

doi:10.5465/amj.2014.1041

Cited by 113 publications

(88 citation statements)

References 80 publications

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“…Key to negative reputation spillovers are that the negative action is perceived as self-serving, within an actor's control, and that others are also likely to be doing the same thing (Barnett & King, 2008;Gomulya & Mishina, 2017;Park & Rogen, 2019). However, what if the negative action is the outcome of capability failings that result from taking different actions than those taken by others in the industry?…”

Section: Theory and Hypothesesmentioning

confidence: 99%

“…Most prior research has not attempted to directly assess the effects of scandals or other negative events on others' reputations. Rather, they have measured other factors, such as market (e.g., Karpoff, Lee, & Martin, 2008;Paruchuri & Misangyi, 2015;Piazza & Jourdan, 2018) and media (Zavyalova et al, 2012) reactions, or the actions taken by other firms to protect themselves from the negative effects of potential spillovers (Arthaud-Day, Certo, Dalton, & Dalton, 2006;Barnett & King, 2008;Gomulya & Mishina, 2017). Thus, while reputations are theorized about, there are typically treated as an unspecified mediator in the empirical analyses.…”

Section: Theoretical Contributionsmentioning

confidence: 99%

“…This assumption is important because it determines whether reputation spillovers really affect this intangible asset in a significant way, and whether firms should take steps to try and mitigate the potential damage, or leverage anticipated gains. However, most research on reputation spillovers has tended to focus on short-term financial outcomes such as cumulative abnormal market returns in the days following the event (e.g., Barnett & King, 2008;Gomulya & Mishina, 2017;Paruchuri & Misangyi, 2015), or on strategic actions designed to mitigate potential spillovers (e.g., Durand & Vergne, 2015;Zavyalova et al, 2012), rather than more directly assessing its effects on other firms' reputations. These short-term outcomes provide little insight into whether spillover effects endure once the salience of the negative event has abated-that is, whether the event continues to affect others' reputations once the crisis is no longer cognitively available and on the "tip of stakeholders' brains.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

On the tip of the brain: Understanding when negative reputational events can have positive reputation spillovers, and for how long

Paruchuri

Pollock

Kumar

2019

Strategic Management Journal

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Research Summary This study contributes to the reputation spillover literature by showing how a crisis caused by a firm's capability failure enhances the reputations of its rivals. We consider how the combination of rivals' characteristics that increase their associability with the focal firm and the extent to which the crisis is salient in the minds of stakeholders can lead to positive reputation spillovers, and we also explore how long the positive reputation spillover lasts. Using a natural experiment based on the Escherichia coli outbreak in Chipotle's Seattle restaurants, we find that the reputations of other restaurants in the Seattle region were enhanced when the E. coli breakout was more salient and thus cognitively available, but only for Mexican restaurants that were geographically proximal to a Chipotle. Managerial Summary In this study we conducted a natural experiment based on Chipotle's 2015 E. coli breakout to explore how a firm's capability failure affects the reputation of its competitors. We found that failures due to firm practices that differentiate the firm from others in its industry result in positive reputation spillovers, but only for the firms that are the most similar, and only for as long as the failure is salient to stakeholders. Thus, the benefit to firms from a competitor's failure is only temporary, and will not be experienced equally.

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Section: Theory and Hypothesesmentioning

confidence: 99%

Section: Theoretical Contributionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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On the tip of the brain: Understanding when negative reputational events can have positive reputation spillovers, and for how long

Paruchuri

Pollock

Kumar

2019

Strategic Management Journal

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“…The perceived violation of stakeholder expectations triggers negative stakeholder evaluation (Gomulya & Mishina, 2016). The active pursuit of corporate benefaction by cultural organizations violates the norms of their field and distances them from its dominant logic.…”

Section: The Signaling Effect Of Relationships With Donorsmentioning

confidence: 99%

“…This is particularly the case of cultural fileds in which there is no objective measure of performance (Lamont, 2012: Zuckerman, 2012. Organizations thus need to communicate their worth to their audience (Gomulya & Mishina, 2016), and one way to do that is to signal their proximity to the most relevant institutional logic (Kodeih & Greenwood, 2014). An organization signaling its respect for convention and canons of the field helps other actors evaluate its proximity to the dominant logic (Glynn & Lounsbury, 2005).…”

Section: The Signaling Effect Of Relationships With Donorsmentioning

confidence: 99%

When Does Medici Hurt Da Vinci? Mitigating the Signaling Effect of Extraneous Stakeholder Relationships in the Field of Cultural Production

Shymko

Roulet

2017

AMJ

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We thank associate editor Martine Haas and three anonymous reviewers for their constructive feedback, consistent support and guidance throughout the process. We are indebted to Joel Bothello: his help and advice were pivotal in shaping this paper. We are also grateful to Frederic Godart, Michael Gill, Pierre-Antoine Kremp, and the participants of OTREG at Imperial College in September 2015, in particular Matt Kraatz. Finally, we would like to thank Eva Cools for her operational support and Dariya Plaksina for her tremendous help with data collection. [2004][2005][2006][2007][2008][2009][2010][2011]. Firstly, we engage in a qualitative exploration of our setting to contextualize our hypotheses and understand how relationships with corporate donors, depending on their characteristics, affect peer recognition. We then quantitatively test our hypotheses and confirm that the salience of the relationship with extraneous stakeholders -operationalized as the number of corporate donors -has a negative effect on peer recognition. This effect however can be mitigated if theaters choose to limit the breadth, depth and negative valence of the relationship. We contribute to both the institutional logics and stakeholder literature by bringing in a signaling perspective: we show that peer recognition, upon which the maintenance of a dominant logic lies, is directly impacted by the nature of relationships with extraneous stakeholders.

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Determinants of corporate social responsibility performance in emerging markets: An international orientation perspective

2022

Corp Soc Responsibility Env

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For emerging market multinational enterprises (EMNEs), corporate social responsibility (CSR) is a foreign business practice. Because EMNEs are late movers in the international market, their attempts to engage in sustainable development and to improve CSR performance (CSP) are hindered by their limited relevant knowledge and resources. Few studies have investigated how EMNEs achieve high CSP. In this study, a sample of 177 Taiwanese companies in Taiwan listed on the Taiwan Stock Exchange from 2013 to 2015 was examined. Data were collected from the Taiwan Economic Journal database. The effects of international orientation on the level of internationalization, market entry in advanced economies, and adherence to international CSR principles on the CSP of these EMNEs were investigated. The results revealed that higher levels of internationalization, greater market entry in advanced economies, and adherence to international CSR principles are positively related to CSP. In addition, a higher level of internationalization enhances the relationship between adherence to international CSR principles and CSP.

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Signaler Credibility, Signal Susceptibility, and Relative Reliance on Signals: How Stakeholders Change their Evaluative Processes After Violation of Expectations and Rehabilitative Efforts

Cited by 113 publications

References 80 publications

On the tip of the brain: Understanding when negative reputational events can have positive reputation spillovers, and for how long

On the tip of the brain: Understanding when negative reputational events can have positive reputation spillovers, and for how long

When Does Medici Hurt Da Vinci? Mitigating the Signaling Effect of Extraneous Stakeholder Relationships in the Field of Cultural Production

Determinants of corporate social responsibility performance in emerging markets: An international orientation perspective

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