A Model of Competitive Impression Management: Edison versus Westinghouse in the AC/DC Standards War

Abstract

Organizational impression management research traditionally has identified actions that an organization may take to manage an impression of itself held by a specific audience. A significant assumption of this work, therefore, is that the direction of the impression management process is one-way and limited to the focal firm and intended audience. That is, the focal firm acts to affect the way that others perceive it. While helpful, we believe that this ego-centric model portrays a limited conceptualization of the conflicting and iterative processes that can emerge when multiple firms compete for the attention of a common audience, such as consumers. In reality, a firm’s competitive position is enhanced not only when it is thought of in a positive light, but when its competitors are thought of in a negative light. To this end, firms employ a range of tactics to alter the perceptions of competitors in the eyes of key stakeholders. We believe that this component of the impression management literature remains under-theorized. In response, we develop a model of competitive impression management that includes both offensive tactics and defensive counter-tactics. We also elucidate the mechanisms that enable the tactics to achieve their intended effects among multiple audience types. We do so by analyzing the infamous AC/DC electricity standards war between Thomas Edison (direct current, DC) and George Westinghouse (alternating current, AC). Our analysis reveals that Edison engaged in six tactics that were combined across multiple, complementary campaigns in order to elicit a negative perception of Westinghouse and his technology. In response, Westinghouse engaged in four counter-tactics aimed at thwarting Edison’s efforts. We suggest that the resulting generalizable model and theorized mechanisms establish competitive impression management as an independent area of study for organization researchers.