Reputation as a benefit and a burden? How stakeholders' organizational identification affects the role of reputation following a negative event

Academy of Management Journal

Volumn 59, Issue 1, 2016, Pages 253-276

  Zavyalova, Anastasiya ^a   Pfarrer, Michael D ^b   Reger, Rhonda K ^c   Hubbard, Timothy D ^b  

^a RICE UNIVERSITY   (United States)

^b UNIVERSITY OF GEORGIA   (United States)

^c UNIVERSITY OF TENNESSEE   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84959314966     PISSN: 00014273     EISSN: None     Source Type: Journal    
DOI: 10.5465/amj.2013.0611     Document Type: Article

References (117)

1. Adler, P. S., & Kwon, S.-W. 2002. Social capital: Prospects for anewconcept.Academy of Management Review, 27: 17-40.
2. Ahluwalia, R., Burnkrant, R. E., & Unnava, H. R. 2000. Consumer response to negative publicity: The moderating role of commitment.Journal of Marketing Research, 37: 203-214.
3. Aiken, L. S., & West, S. G. 1991. Multiple regression: Testing and interpreting interactions. Thousand Oaks, CA: Sage.
4. Ashforth, B. E., Harrison, S. H., & Corley, K. G. 2008. Identification in organizations: An examination of four fundamental questions. Journal of Management, 34: 325-374.
5. Ashforth, B. E., & Mael, F. 1989. Social identity theory and the organization. Academy of Management Review, 14: 20-39.
6. Barnett, M. L., Jermier, J. M., & Lafferty, B. A. 2006. Corporate reputation: The definitional landscape. Corporate Reputation Review, 9: 26-38.
7. Bartel, C. A. 2001. Social comparisons in boundary-spanning work: Effects of community outreach on members' organizational identity and identification. Administrative Science Quarterly, 46: 379-413.
8. Bascle, G. 2008. Controlling for endogeneity with instrumental variables in strategic management research. Strategic Organization, 6: 285-327.
9. Basdeo, D. K., Smith, K. G., Grimm, C. M., Rindova, V. P., & Derfus, P. J. 2006. The impact of market actions on firm reputation. Strategic Management Journal, 27: 1205-1219.
10. Belsley, D., Kuh, E., & Welsch, R. 1980. Regression diagnostics. New York, NY: Wiley.
11. Berger, J., Sorensen, A. T., & Rasmussen, S.J. 2010. Positive effects of negative publicity: When negative reviews increase sales. Marketing Science, 29: 815-827.
12. Bhattacharya, C. B., & Elsbach, K. D. 2002. Us versus them: The roles of organizational identification and dis-identification in social marketing initiatives. Journal of Public Policy & Marketing, 21(1): 26-36.
13. Bhattacharya, C. B., Rao, H., & Glynn, M. A. 1995. Understanding the bond of identification: An investigation of its correlates among art museum members. Journal of Marketing, 59: 46-57.
14. Bhattacharya, C. B., & Sen, S. 2003. Consumer-company identification: A framework for understanding consumers' relationships with companies. Journal of Marketing, 67: 76-88.
15. Braiterman, A., & Hessekiel, D. 2011. Peer-to-peer event fundraising consumer survey. Available at https://www.blackbaud.com/files/resources/downloads/WhitePaper-RunWalkRidePeerToPeerParticipantSurvey2011.pdf. Accessed February 2015.
16. Breen, M. J. 1997. A cook, a cardinal, his priests, and the press: Deviance as a trigger for intermedia agenda setting. Journalism & Mass Communication Quarterly, 74: 348-356.
17. Brooks, M. E., Highhouse, S., Russell, S. S., & Mohr, D. C. 2003. Familiarity, ambivalence, and firm reputation: Is corporate fame a double-edged sword? The Journal of Applied Psychology, 88: 904-914.
18. Bundy J., & Pfarrer, M.D. 2015. A burden of responsibility: The role of social approval at the onset of a crisis. Academy of Management Review, 40: 345-369.
19. Burgoon, J. K., & LePoire, B. A. 1993. Effects of communication expectancies, actual communication, and expectancy disconfirmation on evaluations of communicators and their communication behavior. Human Communication Research, 20(1): 67-96.
20. Burson, K. A., Larrick, R. P., & Lynch, J. G. 2009. Six of one, half dozen of the other: Expanding and contracting numerical dimensions produces preference reversals. Psychological Science, 20:1074-1078.
21. Cialdini, R. B., Borden, R. J., Thorne, A., Walker, M. R., Freeman, S., & Sloan, L. R. 1976. Basking in reflected glory-3 (football) field studies. Journal of Personality and Social Psychology, 34: 366-375.
22. Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. 2003. Applied multiple regression/correlation analysis for the behavioral sciences. New York, NY: Routledge.
23. Coombs, W. T. 2012. Ongoing crisis communication: Planning, managing, and responding (3rd ed.). Thousand Oaks, CA: Sage.
24. Das, T. K., & Teng, B.-S. 2001. Trust, control, and risk in strategic alliances: An integrated framework. Organization Studies, 22: 251-283.
25. Deephouse, D. L. 2000. Media reputation as a strategic resource: An integration of mass communication and resource-based theories. Journal of Management, 26: 1091-1112.
26. Deephouse, D. L., & Carter, S. M. 2005. An examination of differences between organizational legitimacy and organizational reputation. Journal of Management Studies, 42: 329-360.
27. Devers, C. E., Dewett, T., Mishina, Y., & Belsito, C. A. 2009. A general theory of organizational stigma. Organization Science, 20: 154-171.
28. Dichev, I. D.1999. How good are business school rankings? The Journal of Business, 72: 201-213.
29. Dierickx, I., & Cool, K. 1989. Asset stock accumulation and sustainability of competitive advantage. Management Science, 35: 1504-1511.
30. Dore, R.1983. Goodwill and the spiritofmarket capitalism. The British Journal of Sociology, 34: 459-482.
31. Dukerich, J.M., Kramer, R.M., & Parks, J.M.1998. The dark side of organizational identification.In D.A. Whetten & P. Godfrey (Eds.), Identity in organizations: Building theory through conversations: 245-256. Thousand Oaks, CA: Sage.
32. Dutton, J. E., Dukerich, J. M., & Harquail, C. V. 1994. Organizational images and member identification. Administrative Science Quarterly, 39: 239-263.
33. Edwards, K., & Smith, E. E. 1996. A disconfirmation bias in the evaluation of arguments. Journal of Personality and Social Psychology, 71: 5-24.
34. Einwiller, S., Fedorikhin, A., Johnson, A., & Kamins, M. 2006. Enoughisenough! When identification nolonger prevents negative corporate associations. Journal of the Academy of Marketing Science, 34: 185-194.
35. Elsbach, K. D. 2003. Relating physical environment to self-categorizations: Identity threat and affirmation in a non-territorial office space. Administrative Science Quarterly, 48: 622-654.
36. Elsbach, K. D., & Bhattacharya, C. B. 2001. Defining who you are by what you're not: Organizational disidentification and the national rifle association. Organization Science, 12(4): 393-413.
37. Elsbach, K. D., & Kramer, R. M. 1996. Members' responses to organizational identity threats: Encountering and countering the Business Week rankings. Administrative Science Quarterly, 41(3): 442-476.
38. Fiske, S. T., & Taylor, S. E. 2008. Social cognition, from brains to culture. New York, NY: McGraw Hill.
39. Floyd, K., Ramirez, J. A., & Burgoon, J. K. 1999. Expectancy violations theory. In L. K. Guerrero, J. A. DeVito & M. L. Hecht (Eds.), The nonverbal communication reader: Classic and contemporary readings (2nd ed.): 437-444. Heights, IL: Wakeland Press.
40. Fombrun, C., & Shanley, M. 1990. What's in a name? Reputation building and corporate strategy. Academy of Management Journal, 33: 233-258.
41. Fombrun, C. J. 1996. Reputation: Realizing value from the corporate image. Boston, MA: Harvard Business School Press.
42. Fombrun, C. J., & van Riel, C. B. M. 2004. Fame and fortune: How successful companies build winning reputations. Upper Saddle River, NJ: Pearson Education.
43. Fuller, J. B., Hester, K., Barnett, T., Frey, L., Relyea, C., & Beu, D. 2006. Perceived external prestige and internal respect: New insights into the organizational identification process. Human Relations, 59: 815-846.
44. Godfrey, P. C., Merrill, C. B., & Hansen, J. M. 2009. The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal, 30: 425-445.
45. Graffin, S. D., Bundy, J., Porac, J. F., Wade, J. B., & Quinn, D. P. 2013. Falls from grace and the hazards of high status: The 2009 British MP expense scandal and its impact on parliamentary elites. Administrative Science Quarterly, 58: 313-345.
46. Greene, W. H. 2003. Econometric analysis (5th ed.). New York, NY: Pearson Education.
47. Greve, H. R., Palmer, D., & Pozner, J.E.2010. Organizations gone wild: The causes, processes, and consequences of organizational misconduct. The Academy of Management Annals, 4: 53-107.
48. Gutierrez, B., Howard-Grenville, J., & Scully, M. A. 2010. The faithful rise up: Split identification and an unlikely change effort. Academy of Management Journal, 53: 673-699.
49. Haack, P., Pfarrer, M.D., & Scherer, A.G. 2014. Legitimacy-as-feeling: How affect leads to vertical legitimacy spillovers in transnational governance. Journal of Management Studies, 51: 634-666.
50. Haans, R. F. J., Pieters, C., & He, Z.-L. 2015. forthcoming. Thinking about U: Theorizing and testing U- and inverted U-shaped relationships in strategy research. Strategic Management Journal.
51. Hamilton, B. H., & Nickerson, J. A. 2003. Correcting for endogeneity in strategic management research. Strategic Organization, 1: 51-78.
52. Harrison, S. H., Ashforth, B. E., & Corley, K. G. 2009. Organizational sacralization and sacrilege. Research in Organizational Behavior, 29: 225-254.
53. Hastorf, A. H., & Cantril, H. 1954. They saw a game: A case study. Journal of Abnormal and Social Psychology, 49: 129-134.
54. Heil, O., & Robertson, T. S. 1991. Toward a theory of competitive market signaling: A research agenda. Strategic Management Journal, 12: 403-418.
55. Hofmann, D. A., & Stetzer, A. 1998. The role of safety climate and communication in accident interpretation: Implications for learning from negative events. Academy of Management Journal, 41: 644-657.
56. Hogg, M. A., & Terry, D. J. 2000. Social identity and self-categorization processes in organizational contexts. Academy of Management Review, 25: 121-140.
57. Janicik, G.A., & Larrick, R.P.2005. Social network schemas and the learning of incomplete networks. Journal of Personality and Social Psychology, 88: 348-364.
58. Jensen, T. 2011. 2nd page rankings: You are the #1 loser. Available at http://www.gravitateonline.com/google-search/2nd-place-1st-place-loser-seriously. Accessed February 2015.
59. Jones, G.H.G., Jones, B.H.B., & Little, P.P.2000.Reputation as reservoir: Buffering against lossintimes ofeconomic crisis. Corporate Reputation Review, 3: 21-29.
60. Katz, J. 1987. What makes crime news. Media Culture & Society, 9: 47-75.
61. Kjaergaard, A., Morsing, M., & Ravasi, D. 2011. Mediating identity: A study of media influence on organizational identity construction in a celebrity firm. Journal of Management Studies, 48: 514-543.
62. Klein, J. G., & Ahluwalia, R. 2005. Negativity in the evaluation of political candidates. Journal of Marketing, 69: 131-142.
63. Koopman, J., Howe, M., Hollenbeck, J. R., & Sin, H. P. 2015. Small sample mediation testing: Misplaced confidence in bootstrapped confidence intervals. Journal of Applied Psychology, 100(1): 194-202.
64. Kovoor-Misra, S. 2009. Understanding perceived organizational identity during crisis and change: A threat/ opportunity framework. Journal of Organizational Change Management, 22: 494-510.
65. Kramer, R. M. 1991. Intergroup relations and organizational dilemmas: The role of categorization processes. Research in Organizational Behavior, 13: 191-228.
66. Lamin, A., & Zaheer, S. 2012. Wall street vs. main street: Firm strategies for defending legitimacy and their impact on different stakeholders. Organization Science, 23: 47-66.
67. Lange, D., Lee, P. M., & Dai, Y. 2011. Organizational reputation: A review. Journal of Management, 37: 153-184.
68. Lee, J. H. 2008. Effects of news deviance and personal involvement onaudience story selection:A web-tracking analysis. Journalism & Mass Communication Quarterly, 85(1): 41-60.
69. Lind, J. T., & Mehlum, H. 2010. With or without u? The appropriate test for a u-shaped relationship. Oxford Bulletin of Economics and Statistics, 72: 109-118.
70. Love, E. G., & Kraatz, M. 2009. Character, conformity, or the bottom line? How and why downsizing affected corporate reputation. Academy of Management Journal, 52: 314-335.
71. Lyall, S. 2014. Reporter digging into scandal hits a university's raw nerve. New York Times. Retrieved online from: http://www.nytimes.com/2014/04/27/sports/ reporter-digging-into-scandal-hits-a-universitys-raw-nerve.html? r=0. Posted on April 26, 2014.
72. Mael, F., & Ashforth, B. E. 1992. Alumni and their alma-mater-A partial test of the reformulated model of organizational identification. Journal of Organizational Behavior, 13: 103-123.
73. Martins, L. L. 2005. A model of the effects of reputational rankings on organizational change. Organization Science, 16: 701-720.
74. Marwick, N., & Fill, C. 1997. Towards a framework for managing corporate identity. European Journal of Marketing, 31: 396-409.
75. Maurer, C. C, Bansal, P., & Crossan, M. M. 2011. Creating economic value through social values: Introducing a culturally informed resource-based view. Organization Science, 22: 432-448.
76. McCarthy, J. D., McPhail, C, & Smith, J. 1996. Images of protest: Dimensions of selection bias in media coverage of Washington demonstrations, 1982 and 1991. American Sociological Review, 61: 478-499.
77. McDonnell, M.-H., & King, B. 2013. Keeping up appearances: Reputational threat and impression management after social movement boycotts. Administrative Science Quarterly, 58: 387-419.
78. Mishina, Y., Block, E. S., & Mannor, M. J. 2012. The path dependence of organizational reputation: How social judgment influences assessments of capability and character. Strategic Management Journal, 33:459-477.
79. Mishina, Y., Dykes, B. J., Block, E. S., & Pollock, T. G. 2010. Why " good" firms do bad things: The effects of high aspirations, high expectations, and prominence on the incidence of corporate illegality. Academy of Management Journal, 53: 701-722.
80. Nag, R., Corley, K. G., & Gioia, D. A. 2007. The intersection of organizational identity, knowledge, and practice: Attempting strategic change via knowledge grafting. Academy of Management Journal, 50: 821-847.
81. Parker, S. K., & Axtell, C. M. 2001. Seeing another viewpoint: Antecedents and outcomes of employee perspective taking. Academy of Management Journal, 44: 1085-1100.
82. Perigoe, D. 2011. Top 5 reasons people give to universities. Available at https://www.bestthinking.com/thinkers/business-and-finance/sales-and-marketing/ strategic-management/jdaniellep?tab5blog& blogpostid5 10088. Accessed January 31, 2015.
83. Peterson, S. 1979. Foreign-news gatekeepers and criteria of newsworthiness. The Journalism Quarterly, 56: 116-125.
84. Petkova, A.P., Rindova, V.P., & Gupta, A.K.2008. How can new ventures build reputation? An exploratory study. Corporate Reputation Review, 11: 320-334.
85. Petkova, A. P., Wadhwa, A., Yao, X., & Jain, S. 2014. Reputation and decision making under ambiguity: A study of U.S. Venture capital firms'investments in the clean energy sector. Academy of Management Journal, 57: 422-448.
86. Pfarrer, M. D., DeCelles, K. A., Smith, K. G., & Taylor, M. S. 2008. After the fall: Reintegrating the corrupt organization. Academy of Management Review, 33:730-749.
87. Pfarrer, M. D., Pollock, T. G., & Rindova, V. P. 2010. A tale of two assets: The effects of firm reputation and celebrity on earnings surprises and investors' reactions. Academy of Management Journal, 53: 1131-1152.
88. Pollock, T. G., Mishina, Y., & Seo, Y. 2016. Falling stars: Celebrity, infamy, and the fall from (and return to) grace. In D. Palmer, R. Greenwood, & K. Smith-Crowe (Eds.), Organizational wrongdoing. Cambridge, U.K.: Cambridge University Press.
89. Pollock, T.G., Rindova, V.P., & Maggitti, P.G.2008. Market watch: Information and availability cascades among the media and investors in the U.S. IPO market. Academy of Management Journal, 51: 335-358.
90. Pratt, M. G. 1998. To be or not to be: Central questions in organizational identification. In D. A. Whetten, & P. C. Godfrey (Eds.), Identity in organizations. Building theory through conversations: 171-207. Thousand Oaks, CA: Sage.
91. Rao, H. 1994. The social construction of reputation: Certification contests, legitimation, and the survival of organizations in the American automobile industry: 1895-1912. Strategic Management Journal, 15: 29-44.
92. Rao, H., Monin, P., & Durand, R. 2003. Institutional change in Toque Ville: Nouvelle cuisine as an identity movement in French gastronomy. American Journal of Sociology, 108: 795-843.
93. Raudenbush, S. W., & Bryk, A. S. 2001. Hierarchical linear models:Applicationsanddataanalysismethods (2nd ed.). Newbury Park, CA: Sage.
94. Reger, R. K., Barney, J., Bunderson, S., Foreman, P., Gustafson, L. T., Huff, A., Martins, L. L., Sarason, Y., & Stimpert, L. 1998. A strategy conversation on the topic of organization identity. In D. A. Whetten, & P. Godfrey (Eds.), Identity in organizations: Building theory through conversations. Thousand Oaks, CA: Sage.
95. Rhee, M., & Haunschild, P. R. 2006. The liability of good reputation: A study of product recalls in the U.S. Automobile industry. Organization Science, 17: 101-117.
96. Rindova, V. P., & Fombrun, C. J. 1999. Constructing competitive advantage: The role of firm-constituent interactions. Strategic Management Journal, 20: 691-710.
97. Rindova, V. P., & Martins, L. L. 2012. Show me the money: A multidimensional perspective on reputation as an intangible asset.In M.L. Barnett, & T.G.Pollock (Eds.), The Oxford handbook of corporate reputation: 16-33. Oxford, UK: Oxford University Press.
98. Rindova, V. P., Williamson, I. O., & Petkova, A. P. 2010. Reputation as an intangible asset: Reflections on theory and methods in two empirical studies of business school reputations. Journal of Management, 36: 610-619.
99. Rindova, V. P., Williamson, I. O., Petkova, A. P., & Sever, J. M. 2005. Being good or being known: An empirical examination of the dimensions, antecedents, and consequences of organizational reputation. Academy of Management Journal, 48: 1033-1049.
100. Robinson, S. L., & Rousseau, D. M. 1994. Violating the psychologicalcontract: Nottheexceptionbutthenorm. Journal of Organizational Behavior, 15: 245-259.
101. th year in a row. Available at http://espn.go.com/nfl/story/-/id/10354114/ harris-poll-nfl-most-popular-mlb-2nd (accessed February 27, 2015).
102. Sauder, M., & Lancaster, R. 2006. Do rankings matter? The effects of U.S. News & World Report rankings on the admissions process of law schools. Law & Society Review, 40: 105-134.
103. Schnietz, K. E., & Epstein, M. J. 2005. Exploring the financial value of a reputation for corporate social responsibility during a crisis. Corporate Reputation Review, 7: 327-345.
104. Schonfeld, I. S., & Rindskopf, D. 2007. Hierarchical Linear Modeling in Organizational Research Longitudinal Data Outside the Context of Growth Modeling. Organizational Research Methods, 10: 417-429.
105. Shapiro, C. 1982. Consumer information, product quality, and seller reputation. The Bell Journal of Economics, 13: 20-35.
106. Shapiro, C. 1983. Premiums for high quality products as returns to reputations. The Quarterly Journal of Economics, 98: 659-679.
107. Shoemaker, P. J., Danielian, L. H., & Brendlinger, N. 1991. Deviant acts, risky business and U.S. interests: The newsworthiness of world events. The Journalism Quarterly, 68: 781-795.
108. Skowronski, J. J., & Carlston, D. E. 1987. Social judgment and social memory: The role of cue diagnosticity in negativity, positivity, and extremity biases. Journal of Personality and Social Psychology, 52: 689-699.
109. Smidts, A., Pruyn, A. T. H., & van Riel, C. B. M. 2001. The impact of employee communication and perceived external prestige on organizational identification. Academy of Management Journal, 44: 1051-1062.
110. Snyder, M., & Stukas, A. A., Jr. 1999. Interpersonal processes: The interplay of cognitive, motivational, and behavioral activities in social interaction. Annual Review of Psychology, 50: 273-303.
111. Sobel, M. E. 1982. Asymptotic confidence intervals for indirect effects in structural equation models. Sociological Methodology, 13: 290-312.
112. Tofighi, D., & MacKinnon, D. P. 2011. RMediation: An R package for mediation analysis confidence intervals. Behavior Research Methods, 43: 692-700.
113. Turner, J. C. 1975. Social comparison and social identity: Some prospects for intergroup behavior. European Journal of Social Psychology, 5: 5-34.
114. Vergne, J.-P. 2012. Stigmatized categories and public disapproval of organizations: A mixed-methods study of the global arms industry, 1996-2007. Academy of Management Journal, 55: 1027-1052.
115. Wade, J. B., Porac, J. F., Pollock, T. G., & Graffin, S. D. 2006. The burden of celebrity: The impact of CEO certification contests onCEO pay and performance. Academy of Management Journal, 49: 643-660.
116. Whetten, D. A., & Mackey, A. 2002. A social actor conception of organizational identity and its implications for the study of organizational reputation. Business & Society, 41: 393-414.
117. Zavyalova, A., Pfarrer, M. D., Reger, R. K., & Shapiro, D. 2012. Managing the message: The effects of firm actions and industry spillovers on media coverage following wrongdoing. Academy of Management Journal, 55: 1079-1101.