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
JournalManagement and Organization Review
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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