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Organizations Non-gratae? The Impact of Unethical Corporate Behavior On Interorganizational Networks

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  • Haunschild, Pamela

    (Stanford U)

  • Page, Karen
  • Sullivan, Billian Ni
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    Abstract

    We investigate whether the size and quality of the networks of firms engaging in illegal/unethical acts are affected by those acts. Using legitimacy, status, and resource dependence theories, we hypothesize that size will be affected and quality will deteriorate. Using a sample of 208 firms, we find that network size increases, but network quality deteriorates as the result of unethical acts. We also find the more illegitimate the act, the greater the deterioration in quality.

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    File URL: http://gsbapps.stanford.edu/researchpapers/library/rp1623.pdf
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    Bibliographic Info

    Paper provided by Stanford University, Graduate School of Business in its series Research Papers with number 1623.

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    Date of creation: Jul 2000
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    Handle: RePEc:ecl:stabus:1623

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    1. Jacquemin, Alexis & Nambu, Tsuruhiko & Dewez, Isabelle, 1981. "A Dynamic Analysis of Export Cartels: The Japanese Case," Economic Journal, Royal Economic Society, vol. 91(363), pages 685-96, September.
    2. Reichert, Alan K & Lockett, Michael & Rao, Ramesh P, 1996. "The Impact of Illegal Business Practice on Shareholder Returns," The Financial Review, Eastern Finance Association, vol. 31(1), pages 67-85, February.
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