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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

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  • Zhe Ouyang
  • Chris Nengzhi Yao
  • Xi 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.

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  • Zhe Ouyang & Chris Nengzhi Yao & Xi Hu, 2020. "Crisis spillover of corporate environmental misconducts: The roles of perceived similarity, familiarity, and corporate environmental responsibility in determining the impact on oppositional behavioral," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1797-1808, May.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:4:p:1797-1808
    DOI: 10.1002/bse.2474
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    5. Yihua Wu & Muhammad Farrukh & Ali Raza & Fanchen Meng & Imtiaz Alam, 2021. "Framing the evolution of the corporate social responsibility and environmental management journal," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1397-1411, July.
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    7. Olawole Fawehinmi & Mohd Yusoff Yusliza & Samuel Ogbeibu & M. Imran Tanveer & Charbel Jose Chiappetta Jabbour, 2022. "Academic employees' green behaviour as praxis for bolstering environmental sustainable development: A linear moderated mediation evaluation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3470-3490, November.
    8. Isabel Marques & João Leitão & Alba Carvalho & Dina Pereira, 2021. "Public Administration and Values Oriented to Sustainability: A Systematic Approach to the Literature," Sustainability, MDPI, vol. 13(5), pages 1-27, February.
    9. Sveinung Jørgensen & Lars Jacob Tynes Pedersen & Siv Skard, 2022. "How going green builds trusting beliefs," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 297-311, January.
    10. Faheem Gul Gilal & Naeem Gul Gilal & Nisar Ahmed Channa & Rehman Gul Gilal & Rukhsana Gul Gilal & Muhammad Nawaz Tunio, 2020. "Towards an integrated model for the transference of environmental responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2614-2623, September.
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