Not All Types of Social Networks Are Good: The Dual Effects of Social Networks on Courtesy Stigma

Longwei Tian, Peter Ping Li, En Xie, Yuan Li

Research output: Journal PublicationArticlepeer-review

Abstract

When a firm is accused of serious misconduct, its executives, even those who are nonculpable, are stigmatized by the firm's stakeholders, a phenomenon known as courtesy stigma. One research stream explores how executives' social networks mitigate courtesy stigma, with an emphasis on the positive effect of social networks. From the perspective of a social network as an information pipe, we suggest that social networks are a double-edged sword in the context of courtesy stigma because of their distinctive insulation and exposure mechanisms. Our proposed hypotheses are supported via event history analysis using data collected from a Chinese sample of listed firms that demonstrated financial misconduct in the period 2007-2016. Our study contributes to the literature on social networks and courtesy stigma by revealing their complex links.

Original languageEnglish
Pages (from-to)717-754
JournalManagement and Organization Review
Volume18
Issue number4
Early online date28 Apr 2022
DOIs
Publication statusPublished Online - 28 Apr 2022

Keywords

  • closed-loop tie
  • courtesy stigma
  • financial misconduct
  • open-loop tie

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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