Publication Type
Journal Article
Version
acceptedVersion
Publication Date
2-2010
Abstract
This article explores the motivations that high-status firms have to enter exchange relationships with lower-status partners. We argue that high-status firms can secure greater effort from lower-status partners and that the amount of effort will be proportional to their status advantage over these partners. We further propose that such effort will translate to increased performance by mediating the negative consequences of affiliations with lower-status partners. This increase in performance constitutes the motivation for high-status firms to enter exchange relationships with lower-status partners. Findings using data on Formula One racing support our argument.
Keywords
corporate image, business partnerships, financial performance, reputation, corporate culture, Formula One automobiles
Discipline
Organizational Behavior and Theory | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Academy of Management Journal
Volume
53
Issue
1
First Page
149
Last Page
166
ISSN
0001-4273
Identifier
10.5465/AMJ.2010.48037314
Publisher
Academy of Management
Citation
CASTELLUCCI, Fabrizio and ERTUG, Gokhan.
What’s in it for them? Advantages of Higher Status Partners in Exchange Relationships. (2010). Academy of Management Journal. 53, (1), 149-166.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/1278
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/AMJ.2010.48037314