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Michelin Is Coming to Town: Organizational Responses to Status Shocks

Author

Listed:
  • Favaron, Saverio Dave

    (SKEMA Business School)

  • Di Stefano, Giada

    (Bocconi University - Department of Management and Technology)

  • Durand, Rodolphe

    (HEC Paris)

Abstract

What happens in the aftermath of the introduction of a new status ranking? In this study, we exploit the unique empirical opportunity generated by the release of the first edition of the Michelin Guide for Washington D.C. in the fall of 2016. We build on prior work on rankings as insecurity-inducing devices by suggesting that newly awarded high-status actors modify their self-presentation attributes to fit with what they believe audiences expect from the elite. Our results show that, depending on their standing prior to Michelin’s entry, restaurants acted upon different attributes of their self-presentation. Restaurants with high prior standing emphasized attributes that channeled authenticity and exclusivity, which may imply their Michelin designation triggered operational changes. Actors with low prior standing, on the other hand, acted on descriptive attributes that did not necessarily imply operational changes and could be easily manipulated to signal their belonging among the elite. We contribute to research on status and conformity by disentangling the sources and types of conformity behaviors that newly awarded high-status actors deploy.

Suggested Citation

  • Favaron, Saverio Dave & Di Stefano, Giada & Durand, Rodolphe, 2021. "Michelin Is Coming to Town: Organizational Responses to Status Shocks," HEC Research Papers Series 1431, HEC Paris.
  • Handle: RePEc:ebg:heccah:1431
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    More about this item

    Keywords

    status; evaluation; conformity; difference in differences; gourmet cuisine;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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