Publication Type

Journal Article

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

Additional URL

http://dx.doi.org/10.5465/AMJ.2010.48037314

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