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Double Trouble: Containing Public Disapproval Arising from an Interplay of Stigmatized Categories

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  • Lai Si Tsui‐Auch
  • Dongdong Huang
  • Jun Jie Yang
  • Si Zheng Koh

Abstract

This study addresses the question of how interplays of stigmatized categories might trigger public disapproval and stigma response strategies. We develop two categories: possession of network ties with home‐country governments and market entry into salient industries in target nations. Based on a comparative study of four Chinese firms’ acquisitions in the United States and Australia, we show that (1) firms face different levels of disapproval amid differing interplays of the stigmatized categories and that (2) each firm adopts a distinctive response strategy. Our study contributes to the organizational stigma literature by theorizing about the relationships of categories’ interplays, disapproval levels, and stigma responses. It also adds to the embeddedness perspective by providing an argument for the socio‐political liabilities of strong ties, and it contributes to international business studies on exploring a theme of geopolitics and stigmatization of firms. Finally, it offers research directions relating to these fields of inquiry.

Suggested Citation

  • Lai Si Tsui‐Auch & Dongdong Huang & Jun Jie Yang & Si Zheng Koh, 2022. "Double Trouble: Containing Public Disapproval Arising from an Interplay of Stigmatized Categories," Journal of Management Studies, Wiley Blackwell, vol. 59(8), pages 2101-2123, December.
    • Handle: RePEc:bla:jomstd:v:59:y:2022:i:8:p:2101-2123
    DOI: 10.1111/joms.12751
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    2. Huang, Dongdong & Tsui-Auch, Lai Si & Dieleman, Marleen & Gomulya, David, 2024. "Politically connected EMNCs in a (de)globalising world: A review and future research directions," International Business Review, Elsevier, vol. 33(3).
    3. Osuji, Juliet & Torres de Oliveira, Rui & Tupper, Christina, 2024. "Escaping the stigma of firm operations in emerging markets: Are you willing to pay the price?," Journal of Business Research, Elsevier, vol. 180(C).

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