Level of Organizational Prestige

Title

Level of Organizational Prestige

College

Strome College of Business

Program

Ph.D. Business Administraation - Strategic Management

Publication Date

3-28-2019

Abstract

Many studies have been conducted on organizational prestige. The vast majority of these studies emphasize the benefits associated with organizational prestige, especially superior financial performance. But, there are some studies highlighting disadvantages associated with organizational prestige and even suggesting that there could be advantages being a non-prestigious organization. In this study we argue that there is a cost associated with organizational prestige. Such cost is often omitted in the prestige literature. Specifically, we propose that in the presence of industry prestige saturation (i.e., number of prestigious organizations in the industry), organizational prestige-financial performance relationship may vary. That is, when industry prestige saturation is high (i.e., there are many prestigious organizations in the industry), we propose highly prestigious organizations will encounter lower relative financial performance while non-prestigious organizations will enjoy higher relative financial performance. On the contrary, when industry prestige saturation is low (i.e., there are a few prestigious organizations in the industry), we propose highly prestigious firms will enjoy higher relative financial performance while non-prestigious organizations will encounter lower relative financial performance.

Files

Level of Organizational Prestige


Share

COinS