Abstract
This paper explores the factors that shape the extent to which organizational disapproval and repair attempts impact spillover to firms within an alliance network. Using a long-term event study and random effects GLS model, we find that that social factors such as the pre-event visibility of the alliance, the tenor of post-event media coverage, and post-event repair attempts by the focal firm all strongly influence the speed of transmission and persistence of disapproval among alliance partners. We test our arguments using a sample of 229 allied firms using an event study methodology and random effects GLS regression.
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