The Moderating Role of Power Distance on the Reaction of Consumers to the CEO as a Spokesperson During a Product Harm Crisis: Insights From China and South Korea

Laufer, Daniel; Garrett, Tony C.; Ning, Bo

doi:10.1016/j.intman.2017.12.002

Cited by 26 publications

(16 citation statements)

References 31 publications

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“…The main goal of this study was to explore the effects of crisis response strategy and source of crisis communication on organizational and speaker reputations. Some previous studies in crisis communication found that the choice of spokesperson is essential in maintaining and building organizational reputation (Arpan, ; Laufer, Garrett, & Ning, ; Pauly & Hutchison, ). It seems logical, as those studies concluded, that the CEO's involvement in crisis response gives stakeholders a higher level of confidence and through this reduces the damage and negative reactions (Pauly & Hutchison, ; Seeger et al., ).…”

Section: Discussionmentioning

confidence: 99%

Convergence of crisis response strategy and source credibility: Who can you trust?

Verčić

Verčič

Coombs

2018

Contingencies & Crisis Mgmt

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The purpose of this study was to explore how communicative responses and different sources of communication affect stakeholders' perception of corporate reputation. The main goal was to explore the effects of crisis response strategy and source of crisis communication on organizational and speaker reputations. In a 2 9 2 scenario experiment, respondents judge corporate and speaker reputation of an imaginary organization. Apology as a strategy results in higher postcrisis reputation of both organization and speaker. However, the selection of the source has little effect on how people react to crisis response strategies. This means that a spokesperson can be as useful as a CEO which can be important if the CEO does not convey a positive presence on a screen.

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Section: Discussionmentioning

confidence: 99%

Convergence of crisis response strategy and source credibility: Who can you trust?

Verčić

Verčič

Coombs

2018

Contingencies & Crisis Mgmt

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“…This intermediate and tacit stratum of workplace hierarchy undermines the fostering of team-work culture, weakens performance-based meritocracy and causes resentment and suspicion amongst employees, clearly incompatible with many of the principles that underpin lean and make it successful in other countries and cultures. Leader-Member Exchange theory states that an inner circle in an organisation gains trust and thereby favours in the form of preferential treatment (Laufer et al ., 2018; Gomez and Rosen, 2001; Green and Liden, 1980). In the Indian context, this inner circle is usually made up of chamchas.…”

Section: Discussionmentioning

confidence: 99%

Power distance in India

Mathew

Taylor

2018

CCSM

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Purpose The purpose of this paper is to explore how cultural differentiation can affect the successful transplantation of lean management and production techniques from the parent country to subsidiary countries in the developing world. In particular, the focus will be on car manufacture in India and the role of hierarchy in Indian society, with reflection on how this seeps into workplace and power relations. Design/methodology/approach Lean production techniques have been hailed as revolutionising modern manufacturing, particularly in the automotive sector. In developed world countries, car manufacturers have made significant gains in efficiency and productivity as a result of their implementation. However, as many of these multinational companies (MNCs) have expanded production into rapidly-developing nations to take advantage of both their market and low-labour costs, the introduction of lean production practices have met some resistance. This is because certain underpinning concepts and values of the lean system, such as team work, delegation of authority and upward communication can be considered incompatible with aspects of local culture and employees’ attitude towards work and their superiors. The analysis presented is based on a series of semi-structured interviews with managers and workers from an India-based subsidiary of a MNC car manufacturer and engagement with the existing literature. Findings It concludes that paternal relationships, religious values and group orientation in Indian society have a significant impact on the dynamics of the workplace and result in a brand of power distance that is specific to this national context, raising questions about the suitability of universal implementation of lean production practices. Originality/value “Power distance” has become a catch-all term for cultures with an orientation towards hierarchy and status in society. However, this categorisation masks some of the factors belying the phenomenon and intricacies relating to how it plays out in the workplace. It is simplistic to postulate that high power distance cultures might be incompatible with management approaches that decentralise authority and increase worker participation. Rather than rely on overgeneralisations, the analysis provided has attempted to deconstruct the composition of power distance in the Indian context and document systematically how features of Indian culture conflict with the principles of lean production techniques, using a case study from an Indian subsidiary of a MNC. In particular, the study finds that religion, caste and paternalism create an India-specific power distance that manifests itself in worker behaviour and workplace relationships.

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“…The role of the CEOs is important for inspiring confidence in, and enhancement of the firm's reputation (Laufer et al, 2018), which may both be higher for high (vs low) materialistic individuals. Celebrity CEOs may be highly trustworthy for materialistic individuals because of their leadership and their ability to provide direction, and stimulate action or alter the opinion of followers (Jin and Yeo, 2011).…”

Section: The Role Of Materialismmentioning

confidence: 99%

“…Celebrity CEOs may be highly trustworthy for materialistic individuals because of their leadership and their ability to provide direction, and stimulate action or alter the opinion of followers (Jin and Yeo, 2011). This perceived leadership, in turn, influences brand trust and helps improve the image of the brand (Laufer et al, 2018). Thus, individuals with high levels of materialism may consider celebrity CEOs as trustworthy.…”

Section: The Role Of Materialismmentioning

confidence: 99%

Celebrity CEOs’ credibility, image of their brands and consumer materialism

Huaman-Ramirez

Merunka

2021

JCM

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Purpose This paper aims to model and estimate how celebrity chief executive officers (CEOs) credibility (i.e. expertise, trustworthiness, attractiveness) is related to their brand image (i.e. functional, sensory/visual). This paper further examines the effects of consumer materialism on both celebrity CEOs’ credibility and the image of their brand. Design/methodology/approach A total of 260 participants knowledgeable of CEOs and their corresponding brands completed an online questionnaire in a cross-sectional study. The data were analyzed through covariance-based structural equation modeling. Findings Celebrity CEOs’ expertise and attractiveness are positively related to both functional and sensory/visual images of their brands. Results also demonstrate the positive effect of materialism on both celebrity CEOs’ credibility and brand image. Research limitations/implications The research was conducted in one country (France) using a cross-sectional design. Additional studies in other settings or countries should be carried out to establish the generalizability of results and strengthen causality inferences. Practical implications CEOs need to understand and manage their key role as celebrities, given the direct influence they may have on consumer brand perceptions and behavior. Originality/value This study refines the relationship between celebrity CEOs’ credibility and brand image. It is the first to introduce and validate the effect of consumer materialism on the perception of celebrity CEOs.

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The Moderating Role of Power Distance on the Reaction of Consumers to the CEO as a Spokesperson During a Product Harm Crisis: Insights From China and South Korea

Cited by 26 publications

References 31 publications

Convergence of crisis response strategy and source credibility: Who can you trust?

Convergence of crisis response strategy and source credibility: Who can you trust?

Power distance in India

Celebrity CEOs’ credibility, image of their brands and consumer materialism

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