How the Basis for Status Perceptions Varies with Perceiver Status

David Tan () and Christopher I. Rider ()
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David Tan: Foster School of Business, University of Washington, Seattle,Washington 98195
Christopher I. Rider: Ross School of Business, University of Michigan, Ann Arbor, Michigan 48109

Organization Science, 2023, vol. 34, issue 2, 509-531

Abstract: We posit a novel mechanism—socially endogenous calibration—whereby the tendency to align with others’ perceptions of organizational status varies systematically with the status of a perceiver’s own organization. We specifically theorize that members of higher-status organizations perceive larger and more correlated status differences among other organizations than members of lower-status organizations do. Using a simulation, we demonstrate how socially endogenous calibration yields these predictions even when quality is uniform across organizations. We further present empirical support for our arguments by analyzing data on individual-level prestige ratings of U.S. law firms. Integrating socially endogenous calibration with prevailing status perspectives based on quality uncertainty, we conclude by elaborating a novel research agenda on stability and instability in organizational status hierarchies.

Keywords: status; third-order inference (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:34:y:2023:i:2:p:509-531

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