RT Article
T1 Industry reputation crisis and firm certification: a co-evolution perspective
JF Journal of business ethics
VO 186
IS 4
SP 761
OP 780
A1 Chen, Yanying
A1 Ping, Liang
A1 Liang, Feng
LA English
PB Springer Science + Business Media B. V
YR 2023
UL https://www.ixtheo.de/Record/1858902886
AB Industry reputation crises trigger producers and consumers to switch to certification as a signal of quality, especially in a weak institutional environment. In this paper, we posit that firm certification as a signaling mechanism involves the co-evolution of firms and consumers. We investigate the impact of industry reputation crises on firm certification as a response strategy. Feedback between producers and consumers causes producers to seek more certifications over time to differentiate themselves from competitors. However, the proliferation of certifications may dilute their credibility and reduce the effectiveness of the signal. Competition from imports that command higher trust from consumers exacerbates the problem in developing countries. We conduct empirical tests using firms in China's dairy industry after an industry reputation crisis. The findings support our hypotheses. This study provides insights on the certification mechanisms through which producers and consumers interact and the effect of institutional environments on this interaction. It also offers implications for managers on how to better respond to industry crises and for policymakers on how to manage the certification market.
K1 Certification
K1 China
K1 Co-evolution
K1 Industry reputation crisis
K1 Signaling
K1 Aufsatz in Zeitschrift
DO 10.1007/s10551-023-05438-5