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Category Signaling and Reputation

Author

Listed:
  • Giacomo Negro

    (Emory University, Atlanta, Georgia 30322)

  • Michael T. Hannan

    (Stanford University, Stanford, California 94305)

  • Magali Fassiotto

    (Stanford University, Stanford, California 94305)

Abstract

We propose that category membership can operate as a collective market signal for quality when low-quality producers face higher costs of gaining membership. The strength of membership as a collective signal increases with the sharpness of the category boundary, that is, contrast . Our empirical study focuses on biodynamic and organic viticulture in Alsace.

Suggested Citation

  • Giacomo Negro & Michael T. Hannan & Magali Fassiotto, 2015. "Category Signaling and Reputation," Organization Science, INFORMS, vol. 26(2), pages 584-600, April.
    • Handle: RePEc:inm:ororsc:v:26:y:2015:i:2:p:584-600
    DOI: 10.1287/orsc.2014.0935
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    References listed on IDEAS

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    2. Megan E. Waldrop & Jill J. McCluskey & Ron C. Mittelhammer, 2017. "Products with multiple certifications: insights from the US wine market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 658-682.
    3. Felix Bracht & Jeroen Mahieu & Steven Vanhaverbeke, 2022. "The signaling value of legal form in debt financing," POID Working Papers 052, Centre for Economic Performance, LSE.
    4. Norbert Steigenberger & Hendrik Wilhelm, 2018. "Extending Signaling Theory to Rhetorical Signals: Evidence from Crowdfunding," Organization Science, INFORMS, vol. 29(3), pages 529-546, June.
    5. Megan Yuan Li & Charson Cancan Dong & Shige Makino, 2023. "Does a Past Category’s Success Influence Existing Entrepreneurial Fundraising?: A Legitimacy Spillover Perspective," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2263-2292, November.
    6. Patrizia Fanasch, 2019. "Survival of the fittest: The impact of eco‐certification and reputation on firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 611-628, May.
    7. Clarissa E. Weber & Norbert Steigenberger & Hendrik Wilhelm, 2023. "After successful fundraising: how overfunding and category spanning affect the release and audience-perceived quality of crowdfunded products," Small Business Economics, Springer, vol. 61(3), pages 1009-1026, October.
    8. Ambra Mazzelli & Josip Kotlar & Alfredo De Massis, 2018. "Blending In While Standing Out: Selective Conformity and New Product Introduction in Family Firms," Entrepreneurship Theory and Practice, , vol. 42(2), pages 206-230, March.
    9. Bracht, Felix & Mahieu, Jeroen & Vanhaverbeke, Steven, 2023. "The signaling value of legal form in debt financing," LSE Research Online Documents on Economics 121335, London School of Economics and Political Science, LSE Library.
    10. Claire-Isabelle Roquebert & Gervaise Debucquet, 2024. "Imagining beyond Nature-Culture Dualism: An Exploration of Ecological Justice," Post-Print hal-03897785, HAL.
    11. Felix Bracht & Jeroen Mahieu & Steven Vanhaverbeke, 2023. "The signaling value of legal form in debt financing," CEP Discussion Papers dp1914, Centre for Economic Performance, LSE.
    12. Balázs Kovács & Gianluca Carnabuci & Filippo Carlo Wezel, 2021. "Categories, attention, and the impact of inventions," Strategic Management Journal, Wiley Blackwell, vol. 42(5), pages 992-1023, May.
    13. Eden, Lorraine & Indro, Daniel C. & Miller, Stewart R. & Richards, Malika, 2021. "Valuation uncertainty, home and host market uncertainty, and cross-border seasoned equity offerings," International Business Review, Elsevier, vol. 30(3).
    14. Buhr, Helena & Funk, Russell J. & Owen-Smith, Jason, 2021. "The authenticity premium: Balancing conformity and innovation in high technology industries," Research Policy, Elsevier, vol. 50(1).

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