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Character, Conformity, or the Bottom Line? How and Why Downsizing Affected Corporate Reputation
Abstract
The aim of this study is to illuminate reputational change processes and identify the underlying theoretical mechanisms. We draw upon extant literature to develop three distinct explanations for reputational change, respectively emphasizing criteria of organizational “character,” symbolic conformity, and technical efficacy. We evaluate these explanations by examining the reputational consequences of corporate downsizing. Our results show that downsizing exerted a strong, negative effect on reputation, consistently with the character explanation. However, significant moderation of this negative effect by other factors, including stock market reaction and downsizing's overall prevalence, indicates the need for a multitheoretical approach to reputational change.
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Citations
Cited by
Organizational Reputation: A Review
Lange, D., Lee, P. M., & Dai, Y. (2011) · Journal of Management · doi:10.1177/0149206310390963 · Cited by 960
Zavyalova, A., Pfarrer, M. D., Reger, R. K., & Shapiro, D. L. (2012) · Academy of Management Journal · doi:10.5465/amj.2010.0608 · Cited by 646
Hsu, K.-T. (2012) · Journal of Business Ethics · doi:10.1007/s10551-011-1118-0 · Cited by 430
Social media and the formation of organizational reputation
Etter, M., Ravasi, D., & Colleoni, E. (2019) · Academy of Management Review · doi:10.5465/amr.2014.0280 · Cited by 428
Challenges for global supply chain sustainability: evidence from conflict minerals reports
Kim, Y. H., & Davis, G. F. (2016) · Academy of Management Journal · doi:10.5465/amj.2015.0770 · Cited by 293
Metadata
- Authors
- Love, E. G., & Kraatz, M.
- Venue
- Academy of Management Journal
- Publisher
- Academy of Management
- Published
- 2009-04
- Volume
- 52
- Issue
- 2
- Pages
- 314-335
- ISSN
- 0001-4273 (ISSN-L)
- 1948-0989
- OpenAlex
- W2119935321
- Cited by
- 398
- References
- 0
- FWCI
- 43.35
- Type
- journal article
- Language
- en
- Open access
- closed
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- Love, E. G., & Kraatz, M. (2009). Character, Conformity, or the Bottom Line? How and Why Downsizing Affected Corporate Reputation. Academy of Management Journal. https://doi.org/10.5465/amj.2009.37308247
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