Abstract
Our paper contributes to the emerging research on event-based explanations of alliance instability by conceptually linking theories of organizational stigma, status, and corporate governance to explain unplanned alliance dissolution. Our empirical study of alliance dissolutions by publicly traded US firms operating in the passenger air transportation industry in 1985-2016 confirms our prediction that (a) stigmatizing events affect alliance instability indirectly; (b) the extent of a firm’s external corporate governance exacerbates positive effect of high stigma events on media vilification of a firm but attenuates negative effect of media vilification on the probability of unplanned alliance dissolution; (c) firm status has a penalizing effect when high stigma events occur. However, contrary to our predictions, firm status loses its buffering power when media vilification intensifies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
