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

Published online by Cambridge University Press:  28 April 2022

Longwei Tian Open the ORCID record for Longwei Tian [Opens in a new window] ,
Peter Ping Li ,
En Xie  and
Yuan Li
Longwei Tian
Affiliation:
Tongji University, China
Peter Ping Li*
Affiliation:
University of Nottingham Ningbo China, China Copenhagen Business School, Denmark
En Xie
Affiliation:
Tongji University, China
Yuan Li
Affiliation:
Shanghai Jiao Tong University, China
*
Corresponding author: Peter Ping Li (peter.li@nottingham.edu.cn)
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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.

摘要

连带污名效应是指当一个企业发生严重的违规事件之后，企业的无责高管也会被利益相关者污名化。管理学界已经开始研究高管的社会网络是如何弱化连带污名效应，但主要强调社会网络在连带污名效应中的积极作用，而对社会网络的负面作用关注不够。基于社会网络的信息管道视角，我们提出两种新的社会关系：开环关系和闭环关系，并认为这两种社会关系在连带污名效应中有“双刃剑”的作用。为验证理论，本文采用事件分析方法分析了中国上市企业2007-2016年的财务违规数据。结果发现，公司违规被发现后，高管的开环关系可以通过绝缘机制帮助削弱污名化，但其闭环关系却会通过曝光机制放大污名化。本研究揭示了社会网络在连带污名效应中的复杂作用机制。

Keywords

closed-loop tiecourtesy stigmafinancial misconductopen-loop tie连带污名开环关系闭环关系财务违规
Type
Article
Information
Management and Organization Review , Volume 18 , Issue 4 , August 2022 , pp. 717 - 754
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press on behalf of The International Association for Chinese Management Research

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Footnotes

ACCEPTED BY Editor-in-Chief Arie Y. Lewin

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