Safe Distance to the Wreck Site: Organizational Failure and Intra-Professional Status Changes

Kristina Vaarst Andersen, Agnieska Nowinska, Mark Lorenzen

Research output: Contribution to conference without publisher/journalPaperResearchpeer-review

Abstract

This paper explores boundary conditions of intra-professional status loss in the wake of organizational failure. Extant research shows organizational failure to be a powerful source of status loss, but in this paper we propose that mechanisms of status loss are contingent on characteristics of the industry, organization and failure in question. We build a theoretical argument for mechanisms safeguarding employees from suffering diminishing cumulative career advantages, and empirically test our theorizing. We propose that industry institutions can increase employee bargaining power post organizational failure, and that employees in industries relying heavily on relational capital experience decreased risk of stigmatization. We further propose that employees situated in managerial positions or employed in subsidiaries geographically and organizationally proximate to the cause of the organizational failure benefit less from these mechanisms than other employees. The sudden failure of the marked leading oil reseller OW Bunker offers an excellent natural experiment for testing our hypotheses. Based on unique hand collected quantitative data on 207 key employees and interviews with 21 industry participants we find support for our theorizing. We interpret this as an indication that when key audiences have no instrumental interest in penalizing a group at risk of stigmatization, the increased risk does not manifest as a general status loss, but rather status loss occurs based on rational considerations of culpability.
Original languageEnglish
Publication date2017
Publication statusPublished - 2017
Externally publishedYes
EventAcademy of Management 2017 - Atlanta, United States
Duration: 3. Aug 20178. Aug 2017

Conference

ConferenceAcademy of Management 2017
CountryUnited States
CityAtlanta
Period03/08/201708/08/2017

Cite this

Andersen, K. V., Nowinska, A., & Lorenzen, M. (2017). Safe Distance to the Wreck Site: Organizational Failure and Intra-Professional Status Changes. Paper presented at Academy of Management 2017, Atlanta, United States.
Andersen, Kristina Vaarst ; Nowinska, Agnieska ; Lorenzen, Mark. / Safe Distance to the Wreck Site : Organizational Failure and Intra-Professional Status Changes. Paper presented at Academy of Management 2017, Atlanta, United States.
@conference{97896882ed40466e98a5ff52bbaa80a4,
title = "Safe Distance to the Wreck Site: Organizational Failure and Intra-Professional Status Changes",
abstract = "This paper explores boundary conditions of intra-professional status loss in the wake of organizational failure. Extant research shows organizational failure to be a powerful source of status loss, but in this paper we propose that mechanisms of status loss are contingent on characteristics of the industry, organization and failure in question. We build a theoretical argument for mechanisms safeguarding employees from suffering diminishing cumulative career advantages, and empirically test our theorizing. We propose that industry institutions can increase employee bargaining power post organizational failure, and that employees in industries relying heavily on relational capital experience decreased risk of stigmatization. We further propose that employees situated in managerial positions or employed in subsidiaries geographically and organizationally proximate to the cause of the organizational failure benefit less from these mechanisms than other employees. The sudden failure of the marked leading oil reseller OW Bunker offers an excellent natural experiment for testing our hypotheses. Based on unique hand collected quantitative data on 207 key employees and interviews with 21 industry participants we find support for our theorizing. We interpret this as an indication that when key audiences have no instrumental interest in penalizing a group at risk of stigmatization, the increased risk does not manifest as a general status loss, but rather status loss occurs based on rational considerations of culpability.",
author = "Andersen, {Kristina Vaarst} and Agnieska Nowinska and Mark Lorenzen",
year = "2017",
language = "English",
note = "null ; Conference date: 03-08-2017 Through 08-08-2017",

}

Andersen, KV, Nowinska, A & Lorenzen, M 2017, 'Safe Distance to the Wreck Site: Organizational Failure and Intra-Professional Status Changes', Paper presented at Academy of Management 2017, Atlanta, United States, 03/08/2017 - 08/08/2017.

Safe Distance to the Wreck Site : Organizational Failure and Intra-Professional Status Changes. / Andersen, Kristina Vaarst; Nowinska, Agnieska; Lorenzen, Mark.

2017. Paper presented at Academy of Management 2017, Atlanta, United States.

Research output: Contribution to conference without publisher/journalPaperResearchpeer-review

TY - CONF

T1 - Safe Distance to the Wreck Site

T2 - Organizational Failure and Intra-Professional Status Changes

AU - Andersen, Kristina Vaarst

AU - Nowinska, Agnieska

AU - Lorenzen, Mark

PY - 2017

Y1 - 2017

N2 - This paper explores boundary conditions of intra-professional status loss in the wake of organizational failure. Extant research shows organizational failure to be a powerful source of status loss, but in this paper we propose that mechanisms of status loss are contingent on characteristics of the industry, organization and failure in question. We build a theoretical argument for mechanisms safeguarding employees from suffering diminishing cumulative career advantages, and empirically test our theorizing. We propose that industry institutions can increase employee bargaining power post organizational failure, and that employees in industries relying heavily on relational capital experience decreased risk of stigmatization. We further propose that employees situated in managerial positions or employed in subsidiaries geographically and organizationally proximate to the cause of the organizational failure benefit less from these mechanisms than other employees. The sudden failure of the marked leading oil reseller OW Bunker offers an excellent natural experiment for testing our hypotheses. Based on unique hand collected quantitative data on 207 key employees and interviews with 21 industry participants we find support for our theorizing. We interpret this as an indication that when key audiences have no instrumental interest in penalizing a group at risk of stigmatization, the increased risk does not manifest as a general status loss, but rather status loss occurs based on rational considerations of culpability.

AB - This paper explores boundary conditions of intra-professional status loss in the wake of organizational failure. Extant research shows organizational failure to be a powerful source of status loss, but in this paper we propose that mechanisms of status loss are contingent on characteristics of the industry, organization and failure in question. We build a theoretical argument for mechanisms safeguarding employees from suffering diminishing cumulative career advantages, and empirically test our theorizing. We propose that industry institutions can increase employee bargaining power post organizational failure, and that employees in industries relying heavily on relational capital experience decreased risk of stigmatization. We further propose that employees situated in managerial positions or employed in subsidiaries geographically and organizationally proximate to the cause of the organizational failure benefit less from these mechanisms than other employees. The sudden failure of the marked leading oil reseller OW Bunker offers an excellent natural experiment for testing our hypotheses. Based on unique hand collected quantitative data on 207 key employees and interviews with 21 industry participants we find support for our theorizing. We interpret this as an indication that when key audiences have no instrumental interest in penalizing a group at risk of stigmatization, the increased risk does not manifest as a general status loss, but rather status loss occurs based on rational considerations of culpability.

M3 - Paper

ER -

Andersen KV, Nowinska A, Lorenzen M. Safe Distance to the Wreck Site: Organizational Failure and Intra-Professional Status Changes. 2017. Paper presented at Academy of Management 2017, Atlanta, United States.