The Broad versus the Pointed Brush: Status Change, Stigma, and Blame Following Fast Organizational Failure

Kristina Vaarst Andersen, Mark Lorenzen, Agnieszka Nowinska

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

The paper explores labor-market mechanisms of intra-professional status change following fast organizational failure. Extant research focuses on status change over extended periods of time. We complement that research by undertaking a mixed-method case study of the fast organizational decline and bankruptcy of a former market leader in the global bunker-oil industry. We use unique qualitative and quantitative data to examine the global careers of this firm’s displaced employees. On the one hand, we find that they suffered no general loss of status. On the other hand, we find that the displaced employees most prone to status loss were those who worked organizationally and geographically proximate to the locus of the organization’s failure. We theorize that status change in our case is driven by a mechanism of blaming—the perceived culpability of those displaced employees with comparatively strong association with the organizational failure. We compare this new theoretical notion of blame with the extant notion of stigma, and suggest that while both compensate for imperfect information, stigma entails weaker association with failure. As such, it taints with a “broad brush” compared to blame’s “pointed brush.”
Original languageEnglish
Publication date2019
Number of pages40
Publication statusPublished - 2019
EventDRUID19 Conference - Copenhagen Business School, Frederiksberg, Denmark
Duration: 19 Jun 201921 Jun 2019
Conference number: 41
https://conference.druid.dk/Druid/?confId=59

Conference

ConferenceDRUID19 Conference
Number41
LocationCopenhagen Business School
CountryDenmark
CityFrederiksberg
Period19/06/201921/06/2019
Internet address

Cite this

Vaarst Andersen, K., Lorenzen, M., & Nowinska, A. (2019). The Broad versus the Pointed Brush: Status Change, Stigma, and Blame Following Fast Organizational Failure. Paper presented at DRUID19 Conference, Frederiksberg, Denmark.
Vaarst Andersen, Kristina ; Lorenzen, Mark ; Nowinska, Agnieszka. / The Broad versus the Pointed Brush : Status Change, Stigma, and Blame Following Fast Organizational Failure. Paper presented at DRUID19 Conference, Frederiksberg, Denmark.40 p.
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Vaarst Andersen, K, Lorenzen, M & Nowinska, A 2019, 'The Broad versus the Pointed Brush: Status Change, Stigma, and Blame Following Fast Organizational Failure' Paper presented at, Frederiksberg, Denmark, 19/06/2019 - 21/06/2019, .

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

2019. Paper presented at DRUID19 Conference, Frederiksberg, Denmark.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - The Broad versus the Pointed Brush

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

AU - Vaarst Andersen, Kristina

AU - Lorenzen, Mark

AU - Nowinska, Agnieszka

PY - 2019

Y1 - 2019

N2 - The paper explores labor-market mechanisms of intra-professional status change following fast organizational failure. Extant research focuses on status change over extended periods of time. We complement that research by undertaking a mixed-method case study of the fast organizational decline and bankruptcy of a former market leader in the global bunker-oil industry. We use unique qualitative and quantitative data to examine the global careers of this firm’s displaced employees. On the one hand, we find that they suffered no general loss of status. On the other hand, we find that the displaced employees most prone to status loss were those who worked organizationally and geographically proximate to the locus of the organization’s failure. We theorize that status change in our case is driven by a mechanism of blaming—the perceived culpability of those displaced employees with comparatively strong association with the organizational failure. We compare this new theoretical notion of blame with the extant notion of stigma, and suggest that while both compensate for imperfect information, stigma entails weaker association with failure. As such, it taints with a “broad brush” compared to blame’s “pointed brush.”

AB - The paper explores labor-market mechanisms of intra-professional status change following fast organizational failure. Extant research focuses on status change over extended periods of time. We complement that research by undertaking a mixed-method case study of the fast organizational decline and bankruptcy of a former market leader in the global bunker-oil industry. We use unique qualitative and quantitative data to examine the global careers of this firm’s displaced employees. On the one hand, we find that they suffered no general loss of status. On the other hand, we find that the displaced employees most prone to status loss were those who worked organizationally and geographically proximate to the locus of the organization’s failure. We theorize that status change in our case is driven by a mechanism of blaming—the perceived culpability of those displaced employees with comparatively strong association with the organizational failure. We compare this new theoretical notion of blame with the extant notion of stigma, and suggest that while both compensate for imperfect information, stigma entails weaker association with failure. As such, it taints with a “broad brush” compared to blame’s “pointed brush.”

M3 - Paper

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Vaarst Andersen K, Lorenzen M, Nowinska A. The Broad versus the Pointed Brush: Status Change, Stigma, and Blame Following Fast Organizational Failure. 2019. Paper presented at DRUID19 Conference, Frederiksberg, Denmark.