Abstract
In this study I examine the effect of a firm's reputation for product quality on its effort in learning to reduce its product defect rate. Theoretical ideas on the motivation of learning associated with social aspiration levels and the self-serving bias combined with social categorization suggest that poor quality reputation firms are more likely than their counterparts with a good reputation to attend to potential product defects and consequently reduce their defect rate. However, a stream of research on the motivation of learning stemming from historical aspiration levels and slack search leads to a different argument: a reputation for good quality is more likely to provide firms with a motivation to avoid product defects. I build upon these two competing arguments and hypothesize that stronger motives for learning exist in situations where firms have either a weak or strong reputation for product quality. My study of product recalls in the US automotive industry highlights an inverted U-shaped relationship, indicating the liability of an intermediate reputation in reducing product defects.
| Original language | English |
|---|---|
| Pages (from-to) | 676-703 |
| Number of pages | 28 |
| Journal | Journal of Management Studies |
| Volume | 46 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2009 Jun 1 |
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All Science Journal Classification (ASJC) codes
- Business and International Management
- Strategy and Management
- Management of Technology and Innovation
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Does reputation contribute to reducing organizational errors? A learning approach. / Rhee, Mooweon.
In: Journal of Management Studies, Vol. 46, No. 4, 01.06.2009, p. 676-703.Research output: Contribution to journal › Article
TY - JOUR
T1 - Does reputation contribute to reducing organizational errors? A learning approach
AU - Rhee, Mooweon
PY - 2009/6/1
Y1 - 2009/6/1
N2 - In this study I examine the effect of a firm's reputation for product quality on its effort in learning to reduce its product defect rate. Theoretical ideas on the motivation of learning associated with social aspiration levels and the self-serving bias combined with social categorization suggest that poor quality reputation firms are more likely than their counterparts with a good reputation to attend to potential product defects and consequently reduce their defect rate. However, a stream of research on the motivation of learning stemming from historical aspiration levels and slack search leads to a different argument: a reputation for good quality is more likely to provide firms with a motivation to avoid product defects. I build upon these two competing arguments and hypothesize that stronger motives for learning exist in situations where firms have either a weak or strong reputation for product quality. My study of product recalls in the US automotive industry highlights an inverted U-shaped relationship, indicating the liability of an intermediate reputation in reducing product defects.
AB - In this study I examine the effect of a firm's reputation for product quality on its effort in learning to reduce its product defect rate. Theoretical ideas on the motivation of learning associated with social aspiration levels and the self-serving bias combined with social categorization suggest that poor quality reputation firms are more likely than their counterparts with a good reputation to attend to potential product defects and consequently reduce their defect rate. However, a stream of research on the motivation of learning stemming from historical aspiration levels and slack search leads to a different argument: a reputation for good quality is more likely to provide firms with a motivation to avoid product defects. I build upon these two competing arguments and hypothesize that stronger motives for learning exist in situations where firms have either a weak or strong reputation for product quality. My study of product recalls in the US automotive industry highlights an inverted U-shaped relationship, indicating the liability of an intermediate reputation in reducing product defects.
UR - http://www.scopus.com/inward/record.url?scp=65349151911&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=65349151911&partnerID=8YFLogxK
U2 - 10.1111/j.1467-6486.2009.00830.x
DO - 10.1111/j.1467-6486.2009.00830.x
M3 - Article
AN - SCOPUS:65349151911
VL - 46
SP - 676
EP - 703
JO - Journal of Management Studies
JF - Journal of Management Studies
SN - 0022-2380
IS - 4
ER -