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Coming with Baggage: Past Rejections and the Evolution of Market Relationships

Author

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  • Isabel Fernandez-Mateo

    (London Business School, London NW1 4SA, United Kingdom)

  • Marko Coh

    (Maxxim Consulting, London W1F 7JW, United Kingdom)

Abstract

We examine the role of past rejections in the evolution of market relationships. We identify a theoretical tension between the informational benefits and the negative affect resulting from interactions in which one actor rejected another. Rejection can help select future mutually beneficial transactions, but it can also trigger negative affect and lead rejected actors to decline exchange opportunities with those who rejected them in the past. We test this theory with longitudinal data on candidates considered by an executive search firm, using insights from fieldwork and interviews to understand better what motivates the parties’ reactions to being rejected. This paper contributes to research on relationship evolution and highlights the importance of handling rejection in market interactions.

Suggested Citation

  • Isabel Fernandez-Mateo & Marko Coh, 2015. "Coming with Baggage: Past Rejections and the Evolution of Market Relationships," Organization Science, INFORMS, vol. 26(5), pages 1381-1399, October.
    • Handle: RePEc:inm:ororsc:v:26:y:2015:i:5:p:1381-1399
    DOI: 10.1287/orsc.2015.0995
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    References listed on IDEAS

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    Cited by:

    1. Isabel Fernandez-Mateo & Roberto M. Fernandez, 2016. "Bending the Pipeline? Executive Search and Gender Inequality in Hiring for Top Management Jobs," Management Science, INFORMS, vol. 62(12), pages 3636-3655, December.
    2. Skokic, Vlatka & Coh, Marko, 2017. "How do executive search firms increase interest in career opportunities? The role of past interactions," European Management Journal, Elsevier, vol. 35(4), pages 505-513.

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