The Broad vs. the Pointed Brush

Status Change, Stigma and Blame Following Fast Organizational Failure

Agnieska Nowinska, Kristina Vaarst Andersen, Mark Lorenzen

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

Abstract

This paper explores labor market mechanisms of intra-professional status change following fast organizational failure. We undertake a case study of a collapsed high-profile bunker oil company, selected on account of its failure’s scale, speed, and organizational and geographical heterogeneity. Using unique hand-collected qualitative and quantitative data, we examine the careers of the organization’s displaced employees. At odds with extant theory on stigma, we do not find any general status loss. We explain this by the fast decline and aftermath after bankruptcy of this particular organization, allowing insufficient time for a stigmatization mechanism. We find that displaced employees most prone to status loss are those having worked organizationally and geographically proximately to the locus of the organization’s failure. We suggest that in lieu of stigma, status change is driven by a mechanism of blame, i.e. perceived culpability of those displaced employees with comparatively strong association to organizational failure. Comparing this new theoretical notion with the extant notion of stigma, we suggest that while both are mechanisms compensating for imperfect information, stigma
entails weaker association to failure and hence ‘taints with a broader brush’ compared to blame’s ‘pointed brush’.
Original languageEnglish
Publication date2018
Publication statusPublished - 2018
EventStrategic Management Society - Paris, France
Duration: 22. Sep 201825. Sep 2018

Conference

ConferenceStrategic Management Society
CountryFrance
CityParis
Period22/09/201825/09/2018

Cite this

Nowinska, A., Andersen, K. V., & Lorenzen, M. (2018). The Broad vs. the Pointed Brush: Status Change, Stigma and Blame Following Fast Organizational Failure. Paper presented at Strategic Management Society, Paris, France.
Nowinska, Agnieska ; Andersen, Kristina Vaarst ; Lorenzen, Mark. / The Broad vs. the Pointed Brush : Status Change, Stigma and Blame Following Fast Organizational Failure. Paper presented at Strategic Management Society, Paris, France.
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abstract = "This paper explores labor market mechanisms of intra-professional status change following fast organizational failure. We undertake a case study of a collapsed high-profile bunker oil company, selected on account of its failure’s scale, speed, and organizational and geographical heterogeneity. Using unique hand-collected qualitative and quantitative data, we examine the careers of the organization’s displaced employees. At odds with extant theory on stigma, we do not find any general status loss. We explain this by the fast decline and aftermath after bankruptcy of this particular organization, allowing insufficient time for a stigmatization mechanism. We find that displaced employees most prone to status loss are those having worked organizationally and geographically proximately to the locus of the organization’s failure. We suggest that in lieu of stigma, status change is driven by a mechanism of blame, i.e. perceived culpability of those displaced employees with comparatively strong association to organizational failure. Comparing this new theoretical notion with the extant notion of stigma, we suggest that while both are mechanisms compensating for imperfect information, stigmaentails weaker association to failure and hence ‘taints with a broader brush’ compared to blame’s ‘pointed brush’.",
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Nowinska, A, Andersen, KV & Lorenzen, M 2018, 'The Broad vs. the Pointed Brush: Status Change, Stigma and Blame Following Fast Organizational Failure' Paper presented at, Paris, France, 22/09/2018 - 25/09/2018, .

The Broad vs. the Pointed Brush : Status Change, Stigma and Blame Following Fast Organizational Failure. / Nowinska, Agnieska; Andersen, Kristina Vaarst; Lorenzen, Mark.

2018. Paper presented at Strategic Management Society, Paris, France.

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

TY - CONF

T1 - The Broad vs. the Pointed Brush

T2 - Status Change, Stigma and Blame Following Fast Organizational Failure

AU - Nowinska, Agnieska

AU - Andersen, Kristina Vaarst

AU - Lorenzen, Mark

PY - 2018

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N2 - This paper explores labor market mechanisms of intra-professional status change following fast organizational failure. We undertake a case study of a collapsed high-profile bunker oil company, selected on account of its failure’s scale, speed, and organizational and geographical heterogeneity. Using unique hand-collected qualitative and quantitative data, we examine the careers of the organization’s displaced employees. At odds with extant theory on stigma, we do not find any general status loss. We explain this by the fast decline and aftermath after bankruptcy of this particular organization, allowing insufficient time for a stigmatization mechanism. We find that displaced employees most prone to status loss are those having worked organizationally and geographically proximately to the locus of the organization’s failure. We suggest that in lieu of stigma, status change is driven by a mechanism of blame, i.e. perceived culpability of those displaced employees with comparatively strong association to organizational failure. Comparing this new theoretical notion with the extant notion of stigma, we suggest that while both are mechanisms compensating for imperfect information, stigmaentails weaker association to failure and hence ‘taints with a broader brush’ compared to blame’s ‘pointed brush’.

AB - This paper explores labor market mechanisms of intra-professional status change following fast organizational failure. We undertake a case study of a collapsed high-profile bunker oil company, selected on account of its failure’s scale, speed, and organizational and geographical heterogeneity. Using unique hand-collected qualitative and quantitative data, we examine the careers of the organization’s displaced employees. At odds with extant theory on stigma, we do not find any general status loss. We explain this by the fast decline and aftermath after bankruptcy of this particular organization, allowing insufficient time for a stigmatization mechanism. We find that displaced employees most prone to status loss are those having worked organizationally and geographically proximately to the locus of the organization’s failure. We suggest that in lieu of stigma, status change is driven by a mechanism of blame, i.e. perceived culpability of those displaced employees with comparatively strong association to organizational failure. Comparing this new theoretical notion with the extant notion of stigma, we suggest that while both are mechanisms compensating for imperfect information, stigmaentails weaker association to failure and hence ‘taints with a broader brush’ compared to blame’s ‘pointed brush’.

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Nowinska A, Andersen KV, Lorenzen M. The Broad vs. the Pointed Brush: Status Change, Stigma and Blame Following Fast Organizational Failure. 2018. Paper presented at Strategic Management Society, Paris, France.