When Stigma Doesn’t Transfer: Stigma Deflection and Occupational Stratification in the Sharing Economy

Abstract

Research has suggested that when an occupation is stigmatized, new occupational members will assume the stigma of incumbents because stigma transfers. Yet, current research does not account for shifts in the modern workforce that are changing the nature of many stigmatized occupations. We argue that these changes raise questions about whether stigma will transfer to new occupational members. Drawing from a study of Uber’s entry into Toronto, Canada, we reveal the process by which stigma transfer can be avoided by new occupational members. We show how categorical ambiguity during entry enabled two sets of activities: creating categorical distinctiveness and showcasing identity discrepancies. These activities acted as mechanisms of stigma deflection by distancing Uber drivers from the taint associated with taxi drivers. However, this further entrenched the taint facing incumbents and stratified the occupation along a stigma faultline. We offer implications for research on stigma, market entry, and the sharing economy.

The Distinctive Domain of the Sharing Economy: Definitions, Value Creation, and Implications for Research

“…Further, some claim that its drivers earn more than twice the pay of drivers who face inflexible work arrangements (Chen et al, 2019). We agree with Phung et al (2021) who explain that the relations between Uber and its drivers are complex, as are comparisons with taxi drivers. Our assessment is that the enthusiasm for the platform has been significantly stronger from consumers than from Uber’s drivers.…”

Stigma Beyond Levels: Advancing Research on Stigmatization

“…They can overlap, of course, as one's gender or class can increase the likelihood of being in a servile position relative to others (Hanna & Gough, 2019;Larsen, 2017). However, servile stigma can also stand on its own: taxi drivers are stigmatized for their servile relationship to clients (Phung, Buchanan, Toubiana, Ruebottom, & Turchick-Hakak, 2020;Turchick-Hakak, 2014), as are domestic workers and cleaners (Lucas, Kang, & Li, 2013;Orupabo & Nadim, 2020).…”

The Sharing Economy and Business Model Design: A Configurational Approach

“…Existing research on the sharing economy has focused on its conceptualization and characteristics (Eckhardt et al, 2019; Gerwe and Silva, 2020); drivers (Stofberg et al, 2019); governance mechanisms (Benson et al, 2020); and social or environmental implications (Jiang and Tian, 2018; Zervas et al, 2017). Some strategy research has also considered the entry strategy of the sharing economy (Garud et al, 2020; Paik et al, 2019; Phung et al, 2020) and entry responses of the affected incumbent firms (Chang and Sokol, 2020). However, business model designs and their performance implications for sharing platforms remain poorly understood.…”