BUS 374 Lecture Notes - Lecture 9: Pharmaceutical Research And Manufacturers Of America, Organisational Routines, Social Movement Theory
19 Aug 2018
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Indirect effect: legitimacy, all boycotts aren"t successful. For example occupy wall street kind of protests to air grievances publically: sm activists are spurred by opportunities for change that they see in these organization. Firms whose previous performance is low, are more vulnerable to attacks. Managers may feel they have freedom to change these practices when they receive negative feedback. These feedbacks come from performance of the organization in the market: if performance of an organization declines, managers will feel the need to change. Two types of performance declines can be there sales revenues and reputation. On the other hand poor performance (sales and reputation) signals negative perceptions of primary stakeholders (customers: managers will feel vulnerable to criticism when there is heightened uncertainty. They will lose confidence in their ability to satisfy various stakeholders. They will fear that boycotts will further disrupt their performance: so, firms see that concession (agreeing) to boycotter"s demands is the best way forward.
