Abstract
Scholars often assume that reference groups are industry-wide, homogeneous, and stable. We examine this assumption and suggest hypotheses based on managers' motivations such as self-enhancement and self-improvement, social identity, and affiliation-based impression management. We test hypotheses on failure-induced changes in reference groups and their direction in terms of upward and downward comparisons. An empirical examination of changes in reference groups for firms listed on the Dow Jones Industrial Average Index between 1993 and 2008 shows that performance below social aspirations induces changes in reference groups and toward upward comparisons. The results indicate that managers can choose to change the reference group - a cognition-centered response - as an alternative to such action-centered responses as organizational search and risk-taking in response to poor performance from social aspirations and that upward comparisons may be the result of social performance shortfalls to give a better impression and to improve firm performance.
| Original language | English |
|---|---|
| Journal | Journal of Management and Organization |
| DOIs | |
| Publication status | Accepted/In press - 2018 Jan 1 |
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All Science Journal Classification (ASJC) codes
- Business and International Management
- Organizational Behavior and Human Resource Management
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Looking backward through the looking glass : Reference groups and social comparison. / Lee, Juil; Rhee, Mooweon; Park, Kyung Min.
In: Journal of Management and Organization, 01.01.2018.Research output: Contribution to journal › Article
TY - JOUR
T1 - Looking backward through the looking glass
T2 - Reference groups and social comparison
AU - Lee, Juil
AU - Rhee, Mooweon
AU - Park, Kyung Min
PY - 2018/1/1
Y1 - 2018/1/1
N2 - Scholars often assume that reference groups are industry-wide, homogeneous, and stable. We examine this assumption and suggest hypotheses based on managers' motivations such as self-enhancement and self-improvement, social identity, and affiliation-based impression management. We test hypotheses on failure-induced changes in reference groups and their direction in terms of upward and downward comparisons. An empirical examination of changes in reference groups for firms listed on the Dow Jones Industrial Average Index between 1993 and 2008 shows that performance below social aspirations induces changes in reference groups and toward upward comparisons. The results indicate that managers can choose to change the reference group - a cognition-centered response - as an alternative to such action-centered responses as organizational search and risk-taking in response to poor performance from social aspirations and that upward comparisons may be the result of social performance shortfalls to give a better impression and to improve firm performance.
AB - Scholars often assume that reference groups are industry-wide, homogeneous, and stable. We examine this assumption and suggest hypotheses based on managers' motivations such as self-enhancement and self-improvement, social identity, and affiliation-based impression management. We test hypotheses on failure-induced changes in reference groups and their direction in terms of upward and downward comparisons. An empirical examination of changes in reference groups for firms listed on the Dow Jones Industrial Average Index between 1993 and 2008 shows that performance below social aspirations induces changes in reference groups and toward upward comparisons. The results indicate that managers can choose to change the reference group - a cognition-centered response - as an alternative to such action-centered responses as organizational search and risk-taking in response to poor performance from social aspirations and that upward comparisons may be the result of social performance shortfalls to give a better impression and to improve firm performance.
UR - http://www.scopus.com/inward/record.url?scp=85056152157&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85056152157&partnerID=8YFLogxK
U2 - 10.1017/jmo.2018.58
DO - 10.1017/jmo.2018.58
M3 - Article
JO - Journal of Management and Organization
JF - Journal of Management and Organization
SN - 1833-3672
ER -