Browsing by Author "Sadri Karami, Mohamad Hasan"
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Publication Reputational threats: effects on firms and firms' responses(IE University, 2021-04-07) Sadri Karami, Mohamad Hasan; Moschieri, Caterina; https://ror.org/02jjdwm75Stakeholders’ negative evaluations can have severe negative reputational and performance consequences for the targeted organization. In this dissertation I try to answer three questions. First, how do firms respond to stakeholders’ negative evaluations? Second, what are the consequences of stakeholders’ negative evaluations for organizations and their CEOs? Third, how are the stakeholders’ negative social evaluations are shaped in the first place? In the first chapter paper, we theorize about when and how organizations choose to respond to stakeholders’ criticism. Building on the resource-based view and the stakeholder salience literatures, we depart from this prior research by considering the interplay between the criticizing party’s salience and the salience of the issue that it raises, together with the organization’s resource reconfiguration capabilities, as antecedents of organizational responses. In the second chapter, we examine how CEOs react to the threat of core stigma transfer from their firms. Building on stigma research and upper echelons literature, we propose that the threat of core stigma transfer increases the likelihood that CEOs join the board of other firms as a hedging strategy. In the analysis of the boundary conditions of CEOs joining other firms’ boards, we examine those factors that make CEOs vulnerable to the harm of core stigma transfer and those factors that make other firms receptive to appointing tainted CEOs to their boards. In the third chapter, we draw on the categorization, stigma, and upper echelons literatures to predict the amount of disapproval received by firms in stigmatized industries based on characteristics of their CEOs. Results suggest that the relationship between CEO characteristics and audiences’ disapproval is moderated by the ambiguity of firms’ association with the stigmatized category and by the type of audiences evaluating the firms. We test our hypotheses using a novel, hand collected dataset of 421 CEOs in 212 firms in the global arms industry, between 1998 and 2017.Publication The Perverse Consequence of Firms’ Negative Publicity in Stigmatized Industries: CEOs' Board Appointments(Sage Journal, 2022-11-24) Sadri Karami, Mohamad Hasan; Moschieri, Caterina; https://ror.org/02jjdwm75This study examines whether and when, in a stigmatized industry, firms’ negative publicity can lead to the appointment of their CEOs to the boards of directors of other firms within that sector. Building on research on ingroup identification and on stigma, we propose that within a stigmatized industry, when a firm receives negative publicity, its CEO is more likely to join the board of other firms in the industry, possibly because these other firms interpret the negative publicity as a sign of the social identification of the CEO with the stigmatized industry. We also suggest that this relationship is more likely when the negative publicity reveals information otherwise not available about the CEO. We test our hypotheses using a novel, hand-collected dataset of 408 CEOs in 205 firms in the global arms industry, between 1998 and 2017, and find that within this stigmatized industry, when a firm receives negative publicity, its CEO is more likely to join the board of other firms in the industry, and that lower levels of CEOs’ reputational capital and visibility magnify this effect. Our findings advance the conversations in stigma research about upper echelons, highlighting the importance of internal and external actors and of the type of stigma, when investigating the consequences of stigma for upper echelons’ careers.