The HSG-IWÖ Monthly Brownbag Sustainability Research Seminar starts it’s second season.
The format is a mini-Ph.D. workshop with emphasis on interactive discussion.
We are happy to host Prof. Ben Lewis LIVE at our Institute
Ratings and Reactivity: How Competing Logics Shape Organizational Responses to Being Rated.
We examine why organizations may at times decrease their performance after receiving a positive rating. In contrast to the prevailing assumption that organizations will strive for favorable ratings to achieve reputational benefits, we argue that when the values captured by the rating are perceived as incompatible with a dominant logic that it may lead organizations to strategically reduce their performance on the rated dimension. Utilizing a difference-in-differences design, we examine how companies responded to being rated and recognized as a charitable organization, an evaluation that we maintain was generally perceived as incompatible with the dominant logic of shareholder maximization during the early 1990s. Our results suggest that rated companies decreased philanthropic contributions more after being rated as a generous firm relative to firms that were rated but not recognized. We also found this reaction to be amplified and attenuated by factors that increased or decreased the saliency of the perceived incompatibility between the philanthropy rating and the dominant shareholder logic. These findings provide insights for scholarship on how organizations react to external evaluations and raise important questions for scholars and practitioners interested in the effectiveness of evaluation metrics in shaping organizational performance.
The event is open to the local research community.
Please register with Dr. Miron Avidan
For the attendance in-person the actual COVID policy of the university applies.