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Crisis spillover of corporate environmental misconducts: The roles of perceived similarity, familiarity, and corporate environmental responsibility in determining the impact on oppositional behavioral intention

Ouyang, Z.; Yao, N.; Hu, X.

Crisis spillover of corporate environmental misconducts: The roles of perceived similarity, familiarity, and corporate environmental responsibility in determining the impact on oppositional behavioral intention Thumbnail


Authors

Z. Ouyang

N. Yao

X. Hu



Abstract

Negative impact of a firm's environmental misconduct can spread to other firms under the same category due to stakeholders' categorization. Such problem implies a sociocognitive process that has yet to be explored. Therefore, this study extends the current literature by exploring how interfirm similarity affects the spillover effects through stakeholders' engagement. We propose that interfirm similarity can be perceived by stakeholders as a categorization standard, which can lead to their opposition to other firms. Spillover of misconduct is caused by the decreasing stakeholders' trust, wherein the negative effect is contingent upon stakeholders' perceptions. A questionnaire study is conducted to investigate how people resist an innocent firm in China when a chemistry firm experienced an explosion accident. Our findings confirm that interfirm similarity increases stakeholders' opposition to the innocent firm by decreasing their trust. However, the negative effect is alleviated when the innocent firm is perceived as highly environmentally responsible. Our work contributes to the crisis spillover literature and carries important implications for the management of innocent firms that may lose from an industry peer's misconduct.

Citation

Ouyang, Z., Yao, N., & Hu, X. (2020). Crisis spillover of corporate environmental misconducts: The roles of perceived similarity, familiarity, and corporate environmental responsibility in determining the impact on oppositional behavioral intention. Business Strategy and the Environment, 29(4), 1797-1808. https://doi.org/10.1002/bse.2474

Journal Article Type Article
Acceptance Date Jan 21, 2020
Online Publication Date Feb 3, 2020
Publication Date May 31, 2020
Deposit Date Feb 20, 2020
Publicly Available Date Mar 28, 2024
Journal Business Strategy and the Environment
Print ISSN 0964-4733
Publisher ERP Environment
Peer Reviewed Peer Reviewed
Volume 29
Issue 4
Pages 1797-1808
DOI https://doi.org/10.1002/bse.2474
Public URL https://durham-repository.worktribe.com/output/1269876

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Copyright Statement
This is the accepted version of the following article: Ouyang, Z., Yao, N. & Hu, X. (2020). Crisis spillover of corporate environmental misconducts: The roles of perceived similarity, familiarity, and corporate environmental responsibility in determining the impact on oppositional behavioral intention. Business Strategy and the Environment 29(4): 1797-1808 which has been published in final form at https://doi.org/10.1002/bse.2474. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for self-archiving.




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