Starjournal Quotation Moore, Curt B., Payne, G. Tyge, Filatotchev, Igor, Zajac, Edward J. 2019. The Cost of Status: When Social and Economic Interests Collide. Organization Science. 30 (5), 869-1123.


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Abstract

Although researchers have devoted considerable attention to assessing howorganizations benefit from ascriptions of high status, relatively little research has analyzedthefinancial costs that organizations may incur in actively managing such ascriptions. Inthis study, we analyze how and why organizations may pay a relatively steep economicprice for the attainment and/or maintenance of social status. Specifically, we advance anoriginal theoretical perspective, which suggests thatfirms engaged in economic compe-tition are simultaneously engaged in social ceremony and that these dual processes cangenerate a combination of social gains (in terms of status) and economic losses (in terms ofprofitability). We theorize and test our perspective in the context of competitive biddingceremonies using a unique, decade-long data set on repeated competitive market inter-actions amongfirms in the U.S. construction industry. Wefind support for our predictionthatfirms’participation in bidding ceremonies can generate divergent outcomes, that is,higher social statusanddiminished economic performance. We discuss the implicationsof our theoretical and empirical analysis for the existing literature on social status,competitive bidding, and—more generally—on the role social forces play in competitivemarket behaviors and outcomes.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Organization Science
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title The Cost of Status: When Social and Economic Interests Collide
Volume 30
Number 5
Year 2019
Page from 869
Page to 1123
Reviewed? Y
DOI http://dx.doi.org/10.1287/orsc.2018.1247
Open Access N

Associations

People
Filatotchev, Igor (Details)
External
Moore, Curt B. (Spears School of Business, United States/USA)
Payne, G. Tyge (Rawls College of Business, United States/USA)
Zajac, Edward J. (Kellogg School of Management, Northwestern University, United States/USA)
Organization
Competence Center for Emerging Markets and CEE WE (Details)
Institute for International Business (Dikova) (Details)
Institute for International Business IN (Details)
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