Firm response, action visibility and consumers’ legitimacy judgment

2019 ◽  
Vol 34 (2) ◽  
pp. 75-92
Author(s):  
Zhimei Yuan ◽  
Yi Guo ◽  
Xingdong Wang

Purpose The purpose of this paper is to examine the role of action visibility in moderating the relationship between firm response and individual legitimacy judgment. Since a firm may decouple its public commitment from its actual practice to cope with conflicting stakeholder interests, visibility is important for consumers to make judgment because it is difficult for them to observe a firm’s actual fulfillment of its public commitment to quality assurance after a product-harm crisis. Design/methodology/approach Scenario-based mixed design experiments were employed and 718 valid responses were collected. Findings The results indicated that, while acknowledging responsibility produced more favorable legitimacy judgment than denial, decoupling produced no better judgment than denial. However, higher visibility significantly amplified the effect size. Specifically, under the condition of high visibility, not only did acknowledging responsibility produce much more favorable judgment than denial, but so did decoupling. Research limitations/implications This study provided empirical evidence that action visibility moderated the relationship between firm response and individual legitimacy judgment, thus complementing the literature on crisis management. Practical implications This study provided executives or managers with optimal, suboptimal and least optimal response strategies under different levels of action visibility. Originality/value Much of the extant research on response strategy for organizations to deal with product-harm crisis ignored the moderating role of action visibility. Past research on legitimacy judgment focused on organization. This paper combined firm response, action visibility and individual-level legitimacy judgment.

2016 ◽  
Vol 20 (4) ◽  
pp. 381-395 ◽  
Author(s):  
W. Timothy Coombs ◽  
Sherry Jean Holladay ◽  
An-Sofie Claeys

Purpose The purpose of this paper is to address the under-researched issue of how formal determinations of organizational responsibility for a crisis affect the effectiveness of the denial strategy in protecting organizational reputation. Because studies that omit later determinations of responsibility produce misleading representations of the value of denial, a pilot study and primary study investigated how later determinations of organizational culpability in a management misconduct crisis interact with crisis response strategies to affect reputation and anger. Design/methodology/approach Two studies used experimental designs to assess how denial interacted with determinations of crisis responsibility to influence reputation and anger. Findings The pilot study demonstrated reputational damage and stakeholder anger increased when an organization initially denied responsibility and then was found to be responsible for the crisis. The second study replicated the pilot study findings and also demonstrated that later determinations of guilt decreased reputation scores. When found guilty, the organization’s reputation was significantly more favorable when the positive action strategy was used. Comparison of three response strategies (no response, denial, and positive action) revealed the denial and no response conditions were significantly less effective than the positive response strategy when the organization was found guilty. Research limitations/implications Paper demonstrates the need for research on the denial strategy to consider later determinations of crisis responsibility (guilt) when assessing denial’s impact on organizational reputation. Practical implications When selecting response strategies in situations where crisis responsibility is unclear, practitioners should consider how later determinations of responsibility could affect reputation. Originality/value This paper questions past research on the value of the denial strategy, integrates findings from the trust violations research, and demonstrates the importance of considering formal judgments of organizational responsibility when selecting crisis response strategies.


2016 ◽  
Vol 37 (2) ◽  
pp. 344-371 ◽  
Author(s):  
Mirella Damiani ◽  
Fabrizio Pompei ◽  
Andrea Ricci

Purpose – The purpose of this paper is to analyse the role of performance-related pay (PRP) on productivity and wages of Italian firms. Design/methodology/approach – A unique data set for the Italian economy, obtained from the ISFOL Employer and Employee Surveys (2005, 2007, 2010), is used to estimate the relationship between PRP, labour productivity and wages, also controlling for an ample set of covariates. The authors performed standard quantile regressions (QRs) to investigate heterogeneity in associations of PRP with labour productivity and wages. In a second stage, the endogeneity of PRP was taken into account by using instrumental variable QR techniques. Findings – The econometric estimates suggests that PRP are incentive schemes that substantially lead to efficiency enhancements and wage gains. These findings are confirmed for firms under union governance and suggest that well-designed policies, that circumvent the limited implementation of PRP practices, would guarantee productivity improvement and wage premiums for employees. Research limitations/implications – The main limitation of the findings concerns PRP data, that do not offer statistical information on different types of schemes, at group or individual level. Originality/value – This paper is the first to investigate, on a national scale for the Italian economy, the role of PRP on both productivity and wages, in order to shed light on the efficiency and distributive implications, whereas most of the studies of related literature are restricted to one of those aspects.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gunnar Birkelund

PurposeThe purpose of this study is to further paradox research at the individual level through applying a framework of three phases of individual response to paradox – recognition, understanding and behaviour.Design/methodology/approachCritical and integrative review of previous studies of individual responses to paradox.FindingsThe role of individual understanding is limited in extant research on individual responses to paradox. Individual understanding tends to be equated with behaviour, and thus knowledge of understanding is not differentiated enough, neither is the link between understanding and behaviour sufficiently developed.Research limitations/implicationsThe review does not consider the relationship to interactional, organisational and environmental contexts. The recommendation for future research is to explore individual responses to paradox more entirely, to provide an adequate ground for extending paradox theory across individual and broader levels of analysis.Originality/valueThe review contributes to paradox theory by separating individual understanding and then providing a framework in which recognition, understanding and behaviour can be reintegrated in new ways. In addition to more accurate discernment of individual understanding and of combinations of responses across phases, the three-phase framework facilitates investigation of more intricate influences across phases and paths of evolution of such responses over time.


2020 ◽  
Vol 17 (3) ◽  
pp. 435-463
Author(s):  
Sinikka Lepistö ◽  
Justyna Dobroszek ◽  
Lauri Lepistö ◽  
Ewelina Zarzycka

Purpose This paper aims to explore controls within an inter-organisational relationship involving outsourced management accounting services from the contractor’s perspective. Design/methodology/approach Qualitative data from within the relationship are analysed in a legitimacy-theory framework, illustrating how controls within the relationship are intended to build the contractor’s legitimacy and what kinds of implications the controls have in relation to conflicts between interests inherent in the relationship. Findings The legitimacy perspective clarifies that while controls are aimed at ensuring efficiency for the client, they may also provide symbolic displays of the appropriateness of the contractor’s actions both at an inter-organisational level for the client and at an individual level for the contractor’s employees. While the contractor intends to build legitimacy with the client by demonstrating utility in the form of efficiency, the process also gives the client influence and allows the disposition in terms of shared values to be demonstrated. However, this process has some negative consequences for the contractor’s employees as it is insufficient for serving the boundary-spanning employees’ interests connected with the nature of their work. Hence, the same controls need to yield benefits and fair outcomes for employees. The controls simultaneously foster interconnections that contribute to permanence and formalise the outsourcing of complex services, thereby rendering such processes comprehensible and transferable to other settings, which can be seen to serve the contractor’s continuity interests. Originality/value The paper contributes to academic research by illustrating how controls within inter-organisational relationships not only steer boundary-spanners’ work to conform to a client’s needs but may also help to build legitimacy via symbolic properties in the presence of conflicting interests at both an inter-organisational and individual level. It specifically highlights the important role of boundary-spanners lower in the organisational structure, who both affect and are influenced by the intentions to build legitimacy with the client.


2021 ◽  
Author(s):  
◽  
James Ndone

This study examines the role that negative employee-organization relationships (NEORs) play in determining crisis outcomes (organization's internal reputation and employees' unsupportive behavior). Moreover, the study aims to determine whether the timing of the communication message and the response strategies used in the message affect crisis outcomes. Finally, the role of negative emotions is investigated as mediating variables to explain the relationship between NEORs, crisis response strategies, and crisis timing strategies on crisis outcomes. This study employed an online experiment with 2 (crisis response strategy: rebuilding vs. defensive) x 2 (timing: stealing thunder vs. thunder) between-subjects factorial design with a total of 465 participants recruited from Amazon's market research tool, MTurk. The findings indicate that NEORs affect internal reputation negatively and increase the likelihood of unsupportive behavior. Timing does not affect the relationship between NEORs and crisis outcomes. Rebuilding strategies help in overcoming employees' unwillingness to support the organization during a crisis. Lastly, negative emotions influenced the effect of NEORs on the crisis outcomes. Both theoretical and practical implications are discussed.


2017 ◽  
Vol 38 (5) ◽  
pp. 630-645 ◽  
Author(s):  
Won Ho Kim ◽  
Young-An Ra ◽  
Jong Gyu Park ◽  
Bora Kwon

Purpose The purpose of this paper is to examine the mediating role of burnout (i.e. exhaustion, cynicism, professional inefficacy) in the relationship between job level and job satisfaction as well as between job level and task performance. Design/methodology/approach The final sample included 342 Korean workers from selected companies. The authors employed the Hayes (2013) PROCESS tool for analyzing the data. Findings The results showed that all three subscales of burnout (i.e. exhaustion, cynicism, professional inefficacy) mediate the relationship between job level and job satisfaction. However, only two mediators (i.e. cynicism, professional inefficacy) indicated the mediating effects on the association between job level and task performance. Originality/value This research presented the role of burnout on the relationships between job level, job satisfaction, and task performance especially in South Korean organizational context. In addition to role of burnout, findings should prove helpful in improving job satisfaction and task performance. The authors provide implications and limitations of the findings.


2021 ◽  
Vol 13 (11) ◽  
pp. 5869
Author(s):  
Athanasios Krystallis ◽  
Vlad Zaharia ◽  
Antonis Zairis

Responding to the appeal for more research on the contingencies that shape the relationship between CSR and corporate performance, this paper incorporates environmental CSR, sets up an experimental survey and employs multiple mediation analysis with the aim to test the mediating role of consumer attributions on the CSR elements–consumer responses relationship; and further to examine the degree to which attributions are controllable, i.e., specific CSR elements activate specific type of attributions. Results support that attributions have a strong predicting power on consumer outcomes. The right time of appearance and the appropriate amount of resources committed to a CSR campaign, through the dual type of attributions they activate (more positive, i.e., values-driven and less negative, i.e., egoistic), impact positively on consumer reactions. In this respect, the study adds to past research showing that attributions are controllable, i.e., specific CSR initiative characteristics of a impact on the dimensionality of attributions and, through that, on specific target-types of consumer responses. This study thus shows that the activation of a dual-level attributions’ system is ambivalent, dependent on the character of the CSR campaign. The fact that specific CSR elements (i.e., CSR Timing) activate dual-level CSR motives that act complementarily indicates that managers should be clear about the capabilities of the elements of their CSR initiatives and how much impact they expect those elements to have on consumer response.


2019 ◽  
Vol 5 (2) ◽  
pp. 200-218 ◽  
Author(s):  
Emily Maureen Schneider

Purpose Scholarship on the contact hypothesis and peacebuilding suggests that contact with marginalized ethnic and racial groups may reduce prejudice and improve opportunities for conflict resolution. Through a study of dual-narrative tours to Israel/Palestine, the purpose of this paper is to address two areas of the debate surrounding this approach to social change. First, past research on the effectiveness of contact-based tourism as a method to change attitudes is inconclusive. Travel to a foreign country has been shown to both improve and worsen tourists’ perceptions of a host population. Second, few scholars have attempted to link contact-based changes in attitudes to activism. Design/methodology/approach Through an analysis of 218 post-tour surveys, this study examines the role of dual-narrative tours in sparking attitude change that may facilitate involvement in peace and justice activism. Surveys were collected from the leading “dual-narrative” tour company in the region, MEJDI. Dual-narrative tours uniquely expose mainstream tourists in Israel/Palestine to Palestinian perspectives that are typically absent from the majority of tours to the region. This case study of dual-narrative tours therefore provides a unique opportunity to address the self-selecting bias, as identified by contact hypothesis and tourism scholars, in order to understand the potential impacts of exposure to marginalized narratives. Findings The findings of this study suggest that while these tours tend to engender increased support for Palestinians over Israelis, their most salient function appears to be the cultivation of empathy for “both sides” of the conflict. Similarly, dual-narrative tours often prompt visitors to understand the conflict to be more complex than they previously thought. In terms of activism, tourists tend to prioritize education-based initiatives in their plans for post-tour political engagement. In addition, a large number of participants articulated commitments to support joint Israeli–Palestinian non-governmental organizations and to try to influence US foreign policy to be more equitable. Originality/value These findings complicate debates within the scholarship on peacebuilding as well as within movements for social justice in Israel/Palestine. While programs that equate Israeli and Palestinian perspectives are often criticized for reinforcing the status quo, dual-narrative tours appear to facilitate nuance and universalism while also shifting tourists toward greater identification with an oppressed population. Together, these findings shed light on the ability of tourism to facilitate positive attitude change about a previously stigmatized racial/ethnic group, as well as the power of contact and exposure to marginalized narratives to inspire peace and justice activism.


Humanomics ◽  
2017 ◽  
Vol 33 (4) ◽  
pp. 453-469 ◽  
Author(s):  
Muhammad Khaleel ◽  
Shankar Chelliah ◽  
Sana Rauf ◽  
Muhammad Jamil

Purpose This study aims to find out how corporate social responsibility (CSR) initiatives are perceived by pharmacists and how it influences employees’ organizational commitment and organizational citizenship behavior (OCB) and role of perceived supervisor support in the study. Design/methodology/approach Pharmacists of different hierarchical levels from five multinational pharmaceutical industries in Pakistan were selected as study samples. Data were collected from 136 pharmacists working in Punjab Region. PLS-SEM was used to test the hypotheses. Findings The results from this study found that CSR was a predictor of affective organizational commitment (AOC) and OCB. AOC fully mediates the relationship between CSR and OCB. While perceived supervisory support did not moderate the relationship between AOC and OCB. Pharmaceutical firms can promote commitment toward organization and OCBs by initiating CSR activities. Research limitations/implications This research is one of the innovative studies that empirically examine the predicting role of CSR and moderating role of perceived supervisory support on employees’ attitude and behaviors in the pharmaceutical companies’ context. Moreover, this research will also help the management by adopting CSR activities as core element in shaping employees attitudes and behaviors. Originality/value It is a significant study shifting the focus of research into organizational behavior context and further influences employee’s attitudes and behavior because of perceived CSR in the pharmacy industry.


2015 ◽  
Vol 57 (4) ◽  
pp. 429-447 ◽  
Author(s):  
Mark P. Bowden ◽  
Subhash Abhayawansa ◽  
John Bahtsevanoglou

Purpose – There is evidence that students who attend Technical and Further Education (TAFE) prior to entering higher education underperform in their first year of study. The purpose of this paper is to examine the role of self-efficacy in understanding the performance of students who completed TAFE in the previous year in a first year subject of microeconomics in a dual sector university in Melbourne, Australia. Design/methodology/approach – The study utilises data collected by surveys of 151 students. Findings – A student’s self-efficacy is positively associated with their marks in a first year subject of microeconomics. However, the relationship between final marks and self-efficacy is negative for those students who attended TAFE in the previous year suggesting that they suffer from the problem of overconfidence. When holding self-efficacy constant, using econometric techniques, TAFE attendance is found to be positively related to final marks. Research limitations/implications – The findings are exploratory (based on a small sample) and lead to a need to conduct cross institutional studies. Practical implications – The research points to the need for early interventions so that TAFE students perform well in their first year of higher education. It also points to potential issues in the development of Victorian Certificate of Applied Learning (VCAL) programs. Originality/value – To the best of the authors’ knowledge, this is the first paper to examine the inter-related impact of attendance at TAFE in the previous year and self-efficacy on the subsequent academic performance of TAFE students.


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