Abstract
In this paper, we draw on the categorization, stigma, and identity literatures in building a theory to predict firm behavior in response to the stigmatization of a category to which the organization belongs. Specifically, we argue that firm response depends on two elements: (1) the extent to which an organization is a member of the stigmatized category; and (2) the intensity of stigma, which we conceptualize as the amount of disapproval expressed in the media towards the category as a whole. Organizations that are prominent members of a stigmatized category—we contend—will be comparatively more prone to perceive such category as an integral part of their identity, and as such they will be more reluctant to abandon it. Moreover, the stronger the stigma effect that a category experiences, the higher the likelihood of defection; this effect will be especially prominent under conditions of low media exposure, due to a contrast effect. A quantitative study of proposed new nuclear reactor units in the United St...
Published Version
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