"Increases in Status, Perceived Under-Reciprocation, and Social Undermining Among Top Managers"

Abstract

This paper explores how social and psychological biases may impede the social exchange relations of executives who ascend to high- status corporate leadership positions. We theorize that a combination of self-serving attribution biases among executives who reach high-status positions, and egocentric biases among their prior benefactors, causes a systematic difference in perceptions between the two parties about the relative importance of that help to the high-status beneficiary’s success. This in turn leads to the perception among prior benefactors that the high-status executives have not adequately reciprocated their help. We then extend this theoretical argument, first by suggesting that the perception of under reciprocation is heightened when the high- status executive is a racial minority or a female. Second, we examine how high levels of ingratiation directed toward the high- status executives may contribute to the attribution biases which lead to perceptions of under-reciprocation. The final component of our theoretical framework addresses the significant social consequences of perceived under-reciprocation for the high-status corporate leaders. Specifically, we suggest that the high-status leaders’ ability to access help when needed is reduced, and they are liable to become the target of social undermining that can damage their broader reputation.