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Character, Conformity, or the Bottom Line? How and Why Downsizing Affected Corporate Reputation

Love, E. Geoffrey, Kraatz, Matthew·2009·Academy of Management Journal

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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Authors
Love, E. G., & Kraatz, M.
Venue
Academy of Management Journal
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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