How long does the influence of organizational deviance have on innocent firms?
Prior studies of crisis spillovers show that innocent firms suffer from undeserved losses of legitimacy when other members of their industries misbehave. However, how these innocent companies recover their legitimacy remains a mystery. We draw on the crisis-spillover literature and institutional theory to predict how companies recover their legitimacy—that is, what institutional factors influence the duration of crisis spillover. This “guilt by association” can last a long time, but audiences use institutional signals to detect the strength of association between a focal firm and a deviant firm. In the Chinese context, ex-ante characteristics of firms such as no political connection and international market presence make it less likely that audiences will see them as categorically similar to a firm that is responsible for wrongdoing. This in turn helps innocent companies disassociate from deviant firms in their industries, thereby shortening the duration of crisis spillover.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 69 (2016)
Issue (Month): 8 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/jbusres|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rodolphe Durand & Jean-Philippe Vergne, 2015. "Asset divestment as a response to media attacks in stigmatized industries," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1205-1223, 08.
- Fan, Joseph P.H. & Wong, T.J. & Zhang, Tianyu, 2007. "Politically connected CEOs, corporate governance, and Post-IPO performance of China's newly partially privatized firms," Journal of Financial Economics, Elsevier, vol. 84(2), pages 330-357, May.
- Oliver Alexy & Gerard George, 2013. "Category Divergence, Straddling, and Currency: Open Innovation and the Legitimation of Illegitimate Categories," Journal of Management Studies, Wiley Blackwell, vol. 50(2), pages 173-203, 03.
- Deng, Ping, 2009. "Why do Chinese firms tend to acquire strategic assets in international expansion?," Journal of World Business, Elsevier, vol. 44(1), pages 74-84, January.
- Edward J. Carberry & Brayden G King, 2012. "Defensive Practice Adoption in the Face of Organizational Stigma: Impression Management and the Diffusion of Stock Option Expensing," Journal of Management Studies, Wiley Blackwell, vol. 49(7), pages 1137-1167, November.
- Lance Eliot Brouthers & John Hadjimarcou, 2005. "Generic Product Strategies for Emerging Market Exports into Triad Nation Markets: A Mimetic Isomorphism Approach," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 225-245, 01.
- Chaney, Paul K. & Faccio, Mara & Parsley, David, 2011.
"The quality of accounting information in politically connected firms,"
Journal of Accounting and Economics,
Elsevier, vol. 51(1), pages 58-76.
- Chaney, Paul K. & Faccio, Mara & Parsley, David, 2011. "The quality of accounting information in politically connected firms," Journal of Accounting and Economics, Elsevier, vol. 51(1-2), pages 58-76, February.
- Chaney, Paul & Faccio, Mara & Parsley, David, 2007. "The Quality of Accounting Information in Politically Connected Firms," MPRA Paper 6040, University Library of Munich, Germany.
- Chaney, Paul & Faccio, Mara & Parsley, David, 2009. "The Quality of Accounting Information in Politically Connected Firms," MPRA Paper 21116, University Library of Munich, Germany.
- Rodolphe Durand & Lionel Paolella, 2013. "Category Stretching: Reorienting Research on Categories in Strategy, Entrepreneurship, and Organization Theory," Journal of Management Studies, Wiley Blackwell, vol. 50(6), pages 1100-1123, 09.
- Brad M. Barber & Terrance Odean, 2008. "All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors," Review of Financial Studies, Society for Financial Studies, vol. 21(2), pages 785-818, April.
- Wang, Yuanyuan & You, Jing, 2012. "Corruption and firm growth: Evidence from China," China Economic Review, Elsevier, vol. 23(2), pages 415-433.
- Yuanyuan Wang & Jing You, 2012. "Corruption and Firm Growth: Evidence from China," UCL SSEES Economics and Business working paper series 118, UCL School of Slavonic and East European Studies (SSEES).
- Jia, Ming & Zhang, Zhe, 2013. "The CEO's Representation of Demands and the Corporation's Response to External Pressures: Do Politically Affiliated Firms Donate More?," Management and Organization Review, Cambridge University Press, vol. 9(01), pages 87-114, March.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
- J.-P. Vergne & Tyler Wry, 2014. "Categorizing Categorization Research: Review, Integration, and Future Directions," Journal of Management Studies, Wiley Blackwell, vol. 51(1), pages 56-94, 01.
- Durand , Rodolphe & Paolella , Lionel, 2013. "Category Stretching: Reorienting Research on Categories in Strategy, Entrepreneurship, and Organization Theory," Les Cahiers de Recherche 996, HEC Paris.
- Mark Thomas Kennedy & Peer C. Fiss, 2013. "An Ontological Turn in Categories Research: From Standards of Legitimacy to Evidence of Actuality," Journal of Management Studies, Wiley Blackwell, vol. 50(6), pages 1138-1154, 09.
- Rodolphe Durand & Lionel Paolella, 2013. "Category Stretching: Reorienting Research on Categories in Strategy, Entrepreneurship, and Organization Theory," Post-Print hal-01026129, HAL.
- A. Reuber & Eileen Fischer, 2010. "Organizations Behaving Badly: When Are Discreditable Actions Likely to Damage Organizational Reputation?," Journal of Business Ethics, Springer, vol. 93(1), pages 39-50, April.
- Siah Hwee Ang & Mirko H. Benischke & Jonathan P. Doh, 2015. "The interactions of institutions on foreign market entry mode," Strategic Management Journal, Wiley Blackwell, vol. 36(10), pages 1536-1553, October.
- Jo-Ellen Pozner, 2008. "Stigma and Settling Up: An Integrated Approach to the Consequences of Organizational Misconduct for Organizational Elites," Journal of Business Ethics, Springer, vol. 80(1), pages 141-150, June.
- Petra Christmann & Glen Taylor, 2001. "Globalization and the Environment: Determinants of Firm Self-Regulation in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 439-458, September.
- Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:2649-2663. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.