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Categorical Stigma and Firm Disengagement: Nuclear Power Generation in the United States, 1970-2000

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  • Piazza, Alessandro
  • Perretti, Fabrizio

Abstract

How do organizations react to stakeholder disapproval of a category to which they belong? In this paper, we draw on the categorization, stigma, and identity literatures in building a theory to predict whether firms that are involved in stigmatized activities will choose to reduce or terminate their involvement in them, as opposed to resorting to less drastic measures such as defensive practice adoption or impression management techniques. Conceptualizing groups of organizations involved in such contentious practices as stigmatized categories in the eyes of an audience, we argue that organizational responses rest on three elements: (1) the intensity of stigma targeting the category, (2) the media exposure of the category, and (3) the extent to which an organization is a member of the category. A quantitative study of proposed new nuclear reactor units in the United States between 1970 and 2000, in the face of mounting opposition to atomic power, provides empirical support for our claims.

Suggested Citation

  • Piazza, Alessandro & Perretti, Fabrizio, 2015. "Categorical Stigma and Firm Disengagement: Nuclear Power Generation in the United States, 1970-2000," OSF Preprints xqkdj, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:xqkdj
    DOI: 10.31219/osf.io/xqkdj
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    Cited by:

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    3. Gro Kvåle & Zuzana Murdoch, 2022. "Shame On You! Unpacking the Individual and Organizational Implications of Engaging with a Stigmatized Organization," Journal of Management Studies, Wiley Blackwell, vol. 59(8), pages 2024-2066, December.
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    8. Lamin, Anna & Livanis, Grigorios, 2020. "Do third-party certifications work in a weak institutional environment?," Journal of International Management, Elsevier, vol. 26(2).
    9. Bai, Jing & Tang, Xuesong & Zheng, Yuxin, 2023. "Serving the truth: Do directors with media background improve financial reporting quality?," International Review of Financial Analysis, Elsevier, vol. 85(C).
    10. Jenna J. Burke, 2022. "Do Boards Take Environmental, Social, and Governance Issues Seriously? Evidence from Media Coverage and CEO Dismissals," Journal of Business Ethics, Springer, vol. 176(4), pages 647-671, April.
    11. Alessandro Piazza & Grace L. Augustine, 2022. "Nevertheless, They Persisted: How Patterns of Opposition and Support Shaped the Survival of U.S. Abortion Clinics," Journal of Management Studies, Wiley Blackwell, vol. 59(8), pages 2124-2153, December.
    12. Luis Diestre & Juan Santaló, 2020. "Why Do Firms Suffer Differently from Input Stigmatization? The Costs of Removing Stigmatized Inputs," Organization Science, INFORMS, vol. 31(1), pages 47-66, January.
    13. Andrei Filip & Gerald J. Lobo & Luc Paugam & Hervé Stolowy, 2022. "Disclosures About Key Value Drivers in M&A Announcement Press Releases: An Exploratory Study," Abacus, Accounting Foundation, University of Sydney, vol. 58(1), pages 62-104, March.
    14. Fremeth, Adam R. & Holburn, Guy L. F. & Piazza, Alessandro, 2021. "Activist Protest Spillovers into the Regulatory Domain: Theory and Evidence from the U.S. Nuclear Power Generation Industry," OSF Preprints s39h2, Center for Open Science.
    15. Lai Si Tsui‐Auch & Dongdong Huang & Jun Jie Yang & Si Zheng Koh, 2022. "Double Trouble: Containing Public Disapproval Arising from an Interplay of Stigmatized Categories," Journal of Management Studies, Wiley Blackwell, vol. 59(8), pages 2101-2123, December.
    16. Birton J. Cowden & Joshua S. Bendickson & Blake D. Mathias & Shelby J. Solomon, 2022. "Straight OUTTA Detroit: Embracing Stigma as Part of the Entrepreneurial Narrative," Journal of Management Studies, Wiley Blackwell, vol. 59(8), pages 1915-1949, December.
    17. Rainer Widmann & Michael E. Rose & Marina Chugunova, 2023. "Allegations of Sexual Misconduct, Accused Scientists, and Their Research," Rationality and Competition Discussion Paper Series 419, CRC TRR 190 Rationality and Competition.

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