Coming with Baggage: Past Rejections and the Evolution of Market Relationships

Isabel Fernandez-Mateo () and Marko Coh ()
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Isabel Fernandez-Mateo: London Business School, London NW1 4SA, United Kingdom
Marko Coh: Maxxim Consulting, London W1F 7JW, United Kingdom

Organization Science, 2015, vol. 26, issue 5, 1381-1399

Abstract: We examine the role of past rejections in the evolution of market relationships. We identify a theoretical tension between the informational benefits and the negative affect resulting from interactions in which one actor rejected another. Rejection can help select future mutually beneficial transactions, but it can also trigger negative affect and lead rejected actors to decline exchange opportunities with those who rejected them in the past. We test this theory with longitudinal data on candidates considered by an executive search firm, using insights from fieldwork and interviews to understand better what motivates the parties’ reactions to being rejected. This paper contributes to research on relationship evolution and highlights the importance of handling rejection in market interactions.

Keywords: economic sociology; affect; labor market (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:26:y:2015:i:5:p:1381-1399

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