Session 72

External Influences: Audiences and Media

Track P

Date: Monday, October 5, 2015

Track X

Time: 08:00 – 09:15


Room: Director's Row H

Session Chair:

  • Hun Lee, George Mason University

Title: (Un)avoidable: When Wrongdoing Leads to Organizational Stigma


  • Brian Park, INSEAD
  • Michelle Rogan, INSEAD

Abstract: Organizational stigma is triggered by wrongdoing. Yet most wrongdoing goes unnoticed, and only in a small number of cases does it actually lead to organizational stigma. Drawing on sensemaking theory, we propose that the severity and controllability of organizational wrongdoing are critical cues in the formation of organizational stigma. We also posit that reputation plays an important role in the stigmatization process such that organizations of low reputation are more likely to be stigmatized than those of high reputation in the event of severe wrongdoing. However, the buffering effect of reputation declines when wrongdoing is controllable. We find support for our arguments in an analysis of interstate gas transmission pipeline incidents in the United States over a ten-year period.

Title: Antagonist or Protagonist: The Media’s Role in Casting the Fate of Innovative Firms


  • Abbie Oliver, University of Georgia
  • Michael Pfarrer, University of Georgia
  • Robert Campbell, University of Georgia
  • Hun Lee, George Mason University

Abstract: Although scholars recognize that the media can influence stakeholders' perceptions of firms, less is understood about how the media dramatize firms in their narratives. Moreover, it is unclear whether different stakeholder groups vary in their reliance on these narratives. We propose that over time, the media recast innovative firms from protagonists to antagonists in order to cultivate more interesting narratives. Further, we propose that investment analysts rely more on these narratives compared to the general public. We test our hypotheses using 124 firms on Boston Consulting Group’s list of “50 Most Innovative Companies” (2005-2014). Our preliminary results provide support for our hypotheses, suggesting that the media cast firms in dramatic roles, which subsequently impact stakeholders' perceptions of firm actions.

Title: Failing Expectations: How Financial Markets Contribute to Corporate Short-Termism


  • Mark DesJardine, HEC Paris
  • Pratima Bansal, Western University

Abstract: This study explores the relationship between financial markets and corporate short-termism. By applying temporality to prospect theory, we argue that managers focus more on the short-term when their firms fail to meet the market’s performance expectations (i.e., when they experience losses). Specifically, organizational time horizons are likely to shrink when analysts downgrade their stock recommendations or when firms do not meet analysts' consensus earnings forecasts. We argue that investors’ horizons moderate these relationships. We will analyze quarterly earnings conference call transcripts to measure firms' time horizons. Shorter time horizons are reflected by the greater use of short-term language during quarterly conference calls with analysts. These findings aim to shed light on how financial markets affect short-termism among publicly held firms.

Title: How the Feedback of Audiences Advantages Fast Learners: Evidence from Canadian Software Firms from 2004 to 2013


  • David Maslach, Florida State University
  • Chengwei Liu, University of Warwick
  • Rod McNaughton, University of Auckland

Abstract: Slow learning – low sensitivity to recent performance – has been argued to be essential for adaptation in uncertain environments because learners do not converge to local maxima. Using a simulation model, we demonstrate that fast learning can outperform slow learning when the role of audience feedback is incorporated. A differential sampling process determines how audiences form expectations and react to performance deviations, and potentially reward fast learners for unreliability. We empirically examine our argument using the Google Search data regarding the Canadian software firms from 2004 to 2013. The results support that fast learners tend to attract more (less) attention when outperforming (underperforming) the expectations than slow learners. More generally, we present a sampling account for why fast learning is a sensible strategy, even with uncertain outcomes.

All Sessions in Track P...

Sun: 08:00 – 09:15
Session 281: Models and Evidence in Behavioral Strategy
Sun: 09:45 – 11:00
Session 280: Neuro-science in Behavioral Strategy Research
Sun: 11:15 – 12:30
Session 282: The Origins and Future Development of Behavioral Strategy
Sun: 16:15 – 17:30
Session 77: Organization Level Cognition
Sun: 17:45 – 00:00
Session 325: Behavioral Strategy Business Meeting
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 83: Behavioral Strategy at the Firm Level
Mon: 11:15 – 12:30
Session 68: Behavioral Theory & Learning
Mon: 13:45 – 15:00
Session 69: Problematizing Categories: Performance, Audiences, Innovation and Status
Session 169: The Role of Attention in Organizational Processes (Evaluation, Promotion, Innovation and Growth)
Mon: 16:45 – 18:00
Session 85: Governance
Tue: 08:00 – 09:15
Session 80: Business Models and Innovation
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 71: Upper Echelons and Individual Decision Makers
Session 75: Organizational identity
Tue: 15:45 – 17:00
Session 79: Cognition, Identity and Search
Tue: 17:30 – 18:45
Session 84: Competitors and Other External Forces

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance

Strategic Management Society