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Code and conduct in French cuisine: Impact of code changes on external evaluations

Author

Listed:
  • Rodolphe Durand

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Hayagreeva Rao
  • Philippe Monin

Abstract

We study the effects of organizational code-preserving and code-violating changes on external evaluations by third parties - an essential but under-studied strategic outcome. We define code-preserving changes as a variation in the firm's product range that preserves the social code within which the firm positions its offering. By contrast, a code-violating change corresponds to a variation in the product range that breaks with past codes and embraces another social code. Our analyses of French haute cuisine restaurants show that code-preserving changes and code-violating changes have positive effects on external evaluations. Both effects decline with prior evaluations received by the organization, but only the effect of code-violating changes is reduced with age. Moreover, external evaluations improve when restaurants undertake more code-preserving changes than their direct competitors but decline when they make more code-violating changes than competitors. These results enable us to derive implications for research on strategic change, strategic groups, and strategic social positioning

Suggested Citation

  • Rodolphe Durand & Hayagreeva Rao & Philippe Monin, 2007. "Code and conduct in French cuisine: Impact of code changes on external evaluations," Post-Print hal-00459450, HAL.
    • Handle: RePEc:hal:journl:hal-00459450
    DOI: 10.1002/smj.583
    as

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