Code and conduct in French cuisine: Impact of code changes on external evaluations

Rodolphe Durand (), Hayagreeva Rao and Philippe Monin
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Rodolphe Durand: GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique

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Abstract: We study the effects of organizational code-preserving and code-violating changes on external evaluations by third parties - an essential but under-studied strategic outcome. We define code-preserving changes as a variation in the firm's product range that preserves the social code within which the firm positions its offering. By contrast, a code-violating change corresponds to a variation in the product range that breaks with past codes and embraces another social code. Our analyses of French haute cuisine restaurants show that code-preserving changes and code-violating changes have positive effects on external evaluations. Both effects decline with prior evaluations received by the organization, but only the effect of code-violating changes is reduced with age. Moreover, external evaluations improve when restaurants undertake more code-preserving changes than their direct competitors but decline when they make more code-violating changes than competitors. These results enable us to derive implications for research on strategic change, strategic groups, and strategic social positioning

Keywords: code; strategic changes; external evaluations; social positioning (search for similar items in EconPapers)
Date: 2007-05
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Citations: View citations in EconPapers (38)

Published in Strategic Management Journal, 2007, Vol. 28, n° 5, pp. 455-472. ⟨10.1002/smj.583⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00459450

DOI: 10.1002/smj.583

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