Balázs Kovács

The consequences of category spanning depend on contrast

Recent research finds that producers assigned to multiple categories receive less attention and legitimacy and have lower chances of success and survival. We argue that the effect of category spanning on the reception from the audience depends on the fuzziness of the categories. When a set of categories lacks contrast (have very fuzzy boundaries), spanning them does not cause much additional confusion for the audience, thus the penalties associated with spanning ought to be slight. But, when the contrasts of the categories spanned are high, audience members will have difficulty interpreting the producer, so spanning categories will be devalued more. We study these processes using data from an online-review web site. Results show that audience members devalue organizations that span high-contrast categories more than those that span low-contrast categories. These effects are weaker for more active reviewers.

Authenticity and Consumer Value Ratings: Empirical Tests from the Restaurant Domain

We present two studies that together test a fundamental yet rarely examined assumption underlying the contemporary appeal of authenticity-namely, that consumers assign higher value ratings to organizations regarded as authentic. Study 1 conducts content analysis of unsolicited online restaurant reviews entered voluntarily by consumers in three major U.S. metropolitan areas from October 2004 to October 2011; the data contain information from 1,271,796 reviews written by 252,359 unique reviewers of 18,869 restaurants. The findings show that consumers assign higher ratings to restaurants regarded as authentic, even after controlling for restaurant quality in several ways. In addition, we find that consumers perceive independent, family-owned, and specialist single-category restaurants as more authentic than they do chain, non-family-owned, and generalist multiple-category restaurants. Study 2 reinforces these findings using an experimental design in which participants were presented with photos and minimal descriptions of fictitious restaurants and then asked to evaluate the likely authenticity, quality, and overall value of the restaurants in a predetermined sequence. Central to both studies is an authenticity scale that was developed through the use of an online survey that ascertains the specific language used by individuals in referencing authenticity in the restaurant domain. Taken together, these studies demonstrate that authenticity generates higher consumer value ratings of organizations; the studies also identify certain types of organizations that are more likely to receive authenticity attributions by consumers.

The paradox of publicity: : how awards can negatively affect the evaluation of quality

Although increases in status often lead to more favorable inferences about quality in subsequent evaluations, in this paper, we examine a setting in which an increase to an actor’s status results in less favorable quality evaluations, contrary to what much of sociological and management theory would predict. Comparing thousands of reader reviews on Goodreads.com of 64 English-language books that either won or were short-listed for prestigious book awards between 2007 and 2011, we find that prizewinning books tend to attract more readers following the announcement of an award and that readers’ ratings of award-winning books tend to decline more precipitously following the announcement of an award relative to books that were named as finalists but did not win. We explain this surprising result, focusing on two mechanisms whereby signals of quality that tend to promote adoption can subsequently have a negative impact on evaluation. First, we propose that the audience evaluating a high-status actor or object tends to shift as a result of a public status shock, like an award, increasing in number but also in diverse tastes. We outline how this shift might translate into less favorable evaluations of quality. Second, we show that the increase in popularity that tends to follow a status shock is off-putting to some, also resulting in more negative evaluations. We show that our proposed mechanisms together explain the negative effect of status on evaluations in the context of the literary world.

Selective Sampling of Empirical Settings in Organizational Studies

Most studies in organization theory are retrospective and rely on historical data. Because more data are available about widely diffused practices or about large populations, studies typically focus on these. Using simulation, we demonstrate that such selective sampling of empirical settings has important implications for two major research programs in organization theory. Diffusion researchers typically study practices that have diffused widely. We show that this implies that they will underestimate contagion effects. Researchers in organizational ecology often study populations that have become large. We show that such selective sampling of populations can generate spurious non-monotonic density dependence. We discuss the implications of such selective sampling of empirical settings and suggest ways to correct for the bias.

Contrasting alternative explanations for the consequences of category spanning: A study of restaurant reviews and menus in San Francisco

Recent literature on organizational category spanning demonstrates that organizations that span multiple categories on average suffer social and economic disadvantages in markets. While multiple mechanisms have been proposed to explain this finding, most studies do not test directly nor contrast these mechanisms. In this article, we contrast two of the main mechanisms proposed in the literature: the audience-side typicality-based explanation (category spanners are atypical of each categories spanned) and the producer-side quality-based explanation (category spanners produce lower quality output because they cannot develop expertise in any of the categories spanned). We find evidence for both mechanisms. Furthermore, we argue that quality and typicality interact such that high-quality organizations can benefit from being atypical. Finally, we contrast two kinds of spanning, “fusion” and “food court,” and argue that their effects are different depending on the overall quality of the organization. Our empirical setting is the restaurant domain, and we analyze menus and reviews of 474 restaurants located in San Francisco.

What Does It Mean to Span Cultural Boundaries? Variety and Atypicality in Cultural Consumption

We propose a synthesis of two lines of sociological research on boundary spanning in cultural production and consumption. One, research on cultural omnivorousness, analyzes choice by heterogeneous audiences facing an array of crisp cultural offerings. The other, research on categories in markets, analyzes reactions by homogeneous audiences to objects that vary in the degree to which they conform to categorical codes. We develop a model of heterogeneous audiences evaluating objects that vary in typicality. This allows consideration of orientations on two dimensions of cultural preference: variety and typicality. We propose a novel analytic framework to map consumption behavior in these two dimensions. We argue that one audience type, those who value variety and typicality, are especially resistant to objects that span boundaries. We test this argument in an analysis of two large-scale datasets of reviews of films and restaurants.

A comparison of email networks and off-line social networks: A study of a medium-sized bank

Abstract Recently there has been a surge in the availability of online data concerning the connections between people, and these online data are now widely used to map the social structure of communities. There has been little research, however, on how these new types of relational data correspond to classical measures of social networks. To fill this gap, we contrast the structure of an email network with the underlying friendship, communication, and advice seeking networks. Our study is an explorative case study of a bank, and our data contains emails among employees and a survey of the ego networks of the employees. Through calculating correlations with QAP standard errors and estimating exponential random graph (ERG) models, we find that although the email network is related to the survey-based social networks, email networks are also significantly different: while off-line social networks are strongly shaped by gender, tenure, and hierarchical boundaries, the role of these boundaries are much weaker in the email network.

A generalized model of relational similarity

This paper introduces two principles for relational similarity, and based on these principles it proposes a novel geometric representation for similarity. The first principle generalizes earlier measures of similarity such as Pearson-correlation and structural equivalence: while correlation and structural equivalence measure similarity by the extent to which the actors have similar relationships to other actors or objects, the proposed model views two actors similar if they have similar relationships to similar actors or objects. The second principle emphasizes consistency among similarities: not only are actors similar if they have similar relationships to similar objects, but at the same time objects are similar if similar actors relate to them similarly. We examine the behavior of the proposed similarity model through simulations, and re-analyze two classic datasets: the Davis et al. (1941) data on club membership and the roll-call data of the U.S. Senate. We find that the generalized model of similarity is especially useful if (1) the dimensions of comparison are not independent, or (2) the data are sparse, or (3) the boundaries between clusters are not clear.

Audience Structure and Status Multiplicity

This paper investigates status multiplicity, an under-theorized concept in sociological research. We assert that actors’ status can vary both within and across audience segments and argue that embracing status multiplicity is important as it is local status, i.e., status as perceived by the actors audience members, that drives action. We introduce a network-based conceptualization and measure of status multiplicity, and then use this measure to test our predictions in the setting of academic journal rankings and fragmentation in the field of management. The results show that (a) greater audience fragmentation corresponds to higher status multiplicity; (b) local status is a better predictor of actions than global status.

The Categorical Imperative and Structural Reproduction: Dynamics of Technological Entry in the Semiconductor Industry

Extant organizational literature argues that straddling institutionalized categories begets an illegitimacy discount, leading organizations to reproduce established categorical boundaries. If gaining legitimacy requires compliance with this “categorical imperative,” why do we frequently observe categorical straddling even in uncontested and fully institutionalized categorical structures? To address this question, we propose that de novo (i.e., newly founded) and de alio (i.e., diversifying) organizations respond differently to the categorical imperative. Specifically, de novo organizations are more likely to enter and fit in high-contrast categories than in low-contrast ones, whereas the opposite is true for de alio entrants. To test these hypotheses, we follow technological entry dynamics within the semiconductor industry between 1976 and 2002. Using patent information, we examine how category contrast affects which technological categories de novo and de alio organizations enter, and the performance ass...