Transfer of event stigma: Reactions of Japanese regional governments to criticism on bid rigging

Abstract

AbstractAn organization may be stigmatized for the nature of its activities (core stigma), or for misconduct (event stigma). Stigma damages an organization's legitimacy and threatens its survival. Therefore, organizations respond by taking actions to mitigate stigma and restore legitimacy. However, there has been insufficient empirical analysis of responses to transferred event stigma resulting from other organizations' misconduct. This study quantitatively analyzes Japanese regional government entities' responses to criticism from mass media and political directives issued by the central government, after they had been stigmatized for a series of bid‐rigging events. This study's major theoretical contribution is its finding that organizations are sensitive to event stigma that results from others' misconduct. Additionally, this study is among the first to examine the effects stigma has on government organizations, in contrast to prior research that has focused on private companies.