What is it about?
We have shown that as performance decrease below aspiration levels, a focal Dow Jones firm is more likely to change its reference group in such a way that the average performance of reference group increases, i.e., upward comparison.
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Why is it important?
As a new dependent for research on behavioral theory of the firm, reference group change, more specifically upward comparison has been suggested in our paper. While extant studies focused on actions, our study looks at perspective or cognitive framework when a firm evaluate its performance, i.e., reference group.
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This page is a summary of: Looking backward through the looking glass: Reference groups and social comparison, Journal of Management & Organization, November 2018, Cambridge University Press,
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