Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10154005 | Journal of International Management | 2018 | 16 Pages |
Abstract
In the context of a multi-national company scandal, namely Volkswagen's Dieselgate, we examine the effect of customers' perception of organizational crisis response on their revenge and avoidance intentions in different cultural settings. Using data collected in the US and in Germany, we are able to show that the perception of appropriate crisis response reduces customers' revenge as well as avoidance intentions. However, due to the domestic bias of German respondents, the mechanism linking perception of the organization's crisis response to the respective outcomes differs between Germany and the US. Our results demonstrate for the first time that domestic bias is not always associated with being an amplifier of positive factors; rather, in the context of an organizational scandal, it dampens the effects of organizational crisis response.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Melanie Bowen, Jan Freidank, Stefanie Wannow, Mauro Cavallone,