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The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international business (IB), most research has focused on international terrorism, or terrorism generally. Consequently, there has been limited research examining how domestic or local based terrorism impacts foreign firms.

This is a conceptual paper.

Domestic terrorism is the most common form of terrorism in the world today and involves the state and non-state actors. Non-state domestic terrorism can be low intensity or high intensity. High intensity non-state-domestic terrorism typically involves regular and protracted political violence, along with inter-communal violence. This can expose MNEs to considerable operational, governance and legitimacy pressures.

The paper contributes to the gap in IB terrorism research with regards domestic or local based terrorism. Drawing on IB theory and critical terrorism research, the paper addresses the nature and impact of domestic terrorism within IB. The authors’ paper shows the operational, governance and legitimacy pressures of both state and non-state domestic terrorism for MNEs in host markets. While most IB scholars consider the threat of non-state terrorism for international firms, this study shows how domestic state terrorism benefits and constrains foreign firms.

This study delves into how corporations make decisions about influencer marketing. Specifically, it examines the differences between human influencers, who carry the risk of scandals, and virtual influencers, a new and unpredictable realm, regarding their integration with social media platforms.

Using game theory and empirical data, the study explores crucial factors in influencer marketing, including influencer quality, reputation repair costs and the probability of R&D failures.

This study suggests that companies favor human influencers when the risk of scandal is low. However, competing companies switch to virtual influencers at different intervals as this risk increases. The costs, likelihood of scandals and competition intensity all play a role in a company's decision-making regarding technology management. Additionally, a higher chance of R&D failure can motivate a company to invest more in R&D to gain a competitive advantage over rivals that may suffer failures.

This study provides insights into how corporations manage social media influencer marketing in the digital age. It contributes to marketing theory and technology management decisions by offering a fresh perspective on the relationship between corporate reputation and influencer marketing strategy.

This study offers valuable perspectives into a relatively uncharted area of marketing strategy. It employs game theory and empirical analysis to introduce a fresh method of comprehending the dynamics of influencer marketing, its impact on corporate reputation management and its interaction with social media.

Once a corporate crisis is entangled with a social issue, how consumers make sense of the crisis can be impacted by issue-based opinion polarization. This study investigates the underlying mechanisms as consumers go through this process. This study also examines whether corporate social advocacy (CSA) can be an effective crisis-response strategy for mitigating reputational loss.

Theoretical inquiries were empirically tested using an online experiment (N = 792). The experiment set the context in China, in a working-overtime-issue-related crisis. It had a 2 (online exposure: anti-issue opinion vs. pro-issue opinion) × 2 (CSA: absence vs. presence) between-subject design with a continuous variable (pre-existing issue attitudes) measured before the manipulation.

This study found that pre-existing issue attitudes can be directly and indirectly associated with corporate reputation, for the issue attitudes influence how consumers attribute crisis blame. Such a direct effect of pre-existing issue attitudes varies depending on which polarized opinion consumers were exposed to on social media. This study also found CSA to be a robust crisis response strategy, through multiple mechanisms, in protecting the corporate reputation.

Scholars are scarcely aware of the threats that issue-based opinion polarization poses to corporate reputation. This study serves as an early attempt to provide theoretical explanations. In addition to this, this study extends the current conceptual understandings of CSA during corporate crises that involve social issues while adding fresh insights into the established typology of crisis-response strategies.

The study aims to determine whether a relationship exists between the potential significance of corporate controversies for stakeholders and how organisations respond to them in their annual and sustainability reports.

This paper employs content analysis on annual and sustainability reports of 48 listed companies from the Refinitiv database. The logit regression was used to estimate the model.

The study revealed that the main factors increasing the probability of a controversial issue being addressed in a corporate report are the controversy’s potential significance, companies’ financial performance and lawsuits.

Our study has three major limitations. These are a relatively small sample of companies and reports, focusing on disclosures made in corporate reports and omitting other channels of communication, for example, social media, and a certain amount of subjectivity in the process of coding information.

Former studies show that corporations face a serious risk of their hypocritical strategies becoming too evident for stakeholder groups. Our findings suggest that the risk is already materialising and may undermine the idea of CSR and sustainability reporting.

Our research focuses on high-profile adverse incidents widely reported in the media, the omission of which from corporate reports seems to constitute a particular case of organised hypocrite. It also demonstrates that companies use an impression management strategy to defuse adverse publicity and that major controversies cause minor ones to be omitted from their reports.

This paper aims to analyze what Samarco and Brazilian magazines speak and say about Mariana’s environmental crime. Discover their doxa in this subject. Interpret the speakings, sayings and doxas through the theories of the treadmills of production, crime and law.

It is a qualitative and documental research and a narrative analysis. Regarding the documents: 45 were from public authorities, 14 from Samarco Mineração S.A. and 73 from Brazilian magazines. Theoretically, the authors resorted to Bourdieusian sociology (speaking, saying and doxa) and the treadmills of production, crime and law theories.

Samarco: speaking – mission statements; saying – detailed information and economic and financial concerns; doxa – assistance discourse. Brazilian magazines: speaking – external agents; saying – agreements; doxa – attribution, aggravations, historical facts, impacts and protests.

The absence of discussions that addressed this fatality, with its respective consequences, from an agenda that exposed and denounced how it exacerbated race, class and gender inequalities.

Regarding Mariana’s environmental crime: Samarco Mineração S.A. speaks and says through the treadmill of production theory and supports its doxa through the treadmill of crime theory, and Brazilian magazines speak and say through the treadmill of law theory and support their doxa through the treadmill of crime theory.

To provoke reflections on the relationship between the mining companies and the communities where they settle to develop their productive activities.

Concerning environmental crime in perspective, submit it to a theoretical interpretation based on sociological references, approach it in a debate linked to environmental criminology, and describe it through narratives exposed by the guilty company and by Brazilian magazines with high circulation.

This study aims to investigate the dynamic interplay between the management control system (MCS) and organizational identity (OI) in the Deepwater Horizon incident involving British Petroleum (BP). It examines how the MCS manages challenges, particularly those addressing the embarrassment stemming from identity disparities between external portrayal (frontstage) and internal operations (backstage), with a focus on the often-underestimated influence of the media.

This study builds upon the frameworks developed by Ravasi and Schultz (2006) and Malmi and Brown (2008) to construct a theoretical framework that profoundly investigates the relationship between MCS and OI. The framework developed guided the research design and incorporated a qualitative approach complemented by an illustrative case study. The research data was rigorously gathered from diverse sources, including official BP documents and influential media outlets, with a particular focus on well-established American and British newspapers.

BP’s MCS plays a dual role: it exposes discrepancies in safety, leadership and values, causing embarrassment and identity damage, yet catalyses a sense-making process leading to organizational transformation and shifts in the OI. This transformation influences sense-giving and prompts changes in MCS. The study reveals an intricate interplay in identity management between frontstage audiences (e.g. influential media) and backstage actors (e.g. BP’s senior management). It highlights interdependencies both within and between MCS and OI, emphasizing their roles in interacting within identity management. The longitudinal recovery is intricately tied to mutual political interests between BP and the USA, which are significantly facilitated by the media’s role.

This study acknowledges limitations that point future research opportunities. Interviews could provide a more dynamic understanding of MCS changes and organizational transformations. Investigating the role of leadership, particularly the new chief executive office, and the influence of political versus organizational factors in shaping identity claims is essential. Additionally, the effectiveness and historical context of interdependencies should be quantitatively assessed. Theoretical limitations in the OI and MCS frameworks suggest the need for context-specific categorisations. This research serves as a foundation for further exploration of the intricate dynamics between MCS, OI and organizational responses to crises.

This study offers valuable insights with practical implications for organizations facing identity challenges in the wake of significant incidents. Organizations can better navigate crises by recognizing the multifaceted role of MCS in identity damage and restoration. It underscores the importance of addressing both frontstage and backstage aspects of OI while managing identity discrepancies, thereby enhancing transparency and credibility. Additionally, understanding the intricate interdependencies within OI and MCS can guide organizations in implementing more effective identity restoration strategies. Furthermore, the study highlights the significance of media influence and the need to engage with it strategically during crisis management.

This study’s findings have significant social implications for organizations and the broader public. By recognizing the multifaceted role of MCS in shaping identity, organizations can enhance transparency and credibility, rebuilding trust with the public. Additionally, the study highlights the critical role of media in influencing perceptions and decision-making during crises, emphasizing the importance of responsible and ethical reporting. Understanding the intricate interplay between MCS and OI can inform better crisis management strategies and improve how organizations respond to and recover from incidents, ultimately benefiting society by promoting more accountable and responsible corporate behaviour.

This study’s distinctness lies in its innovative exploration of MCS, which transcends traditional methodologies that focus narrowly on front or backstage aspects of OI and often adhere to predetermined MCS practices. It underscores the importance of concurrently addressing both the front- and backstage audiences in managing the embarrassment caused by identity discrepancies and restoration. The research uncovers multifaceted interdependencies within MCS and OI, and these extend beyond simplistic relationships and emphasize the complex nature of identity restoration management.

This study examines how firm product reputation functions as an internal and external expectations-setting mechanism shaping firm and external stakeholder behavior.

Longitudinal analysis of 17,879 recalls from 15 automobile manufacturers operating in the United States between 1967 and 2016.

Applying the behavioral theory of the firm (BTF) and signaling theory, this study’s findings suggest that product safety reputation creates variability in the likelihood of both voluntary and government-ordered recalls.

Performance expectations set by past product performance influence managerial decision-making such that products with a higher reputation for quality are more likely to be voluntarily recalled than are their less reputable counterparts. Similarly, regulators are more likely to order the recall of higher reputation products, suggesting that past product performance also influences enforcement behavior. Finally, the scope and severity of product defects are shown to interact with product reputation to influence the likelihood of government-ordered recall.

Firms and firm stakeholders make distinct decisions based on performance variations within firm product portfolios.

Overall firm reputation is important, but there are distinct dynamics that result in product performance variability within firm product portfolios that have important implications on issues such as product safety recalls.

This study's findings reveal that as an internal signal, managers' expectations of product performance can change their behavior following product safety defects. Specifically, voluntary product recalls are more likely for higher-reputation products than those with lower reputations for product safety. This suggests that firm behavior regarding product safety recalls is not consistent within their own product lines. Externally, this study’s findings suggest that product reputation also influences relationships with key stakeholders. Product reputation for quality was shown to be associated with an increased likelihood of government sanctions. Regulators will also be more likely to initiate punitive sanctions against higher-reputation products as the severity and scope of safety defects increase. Under such circumstances, higher-reputation products are more likely to face government sanctions than lower-reputation products. Hence, government regulatory behavior is subject to influence from performance signals such as product reputation.

When customers make their purchase decisions, they use all the available information from all the initiatives and behaviors that companies carry out with their stakeholders. This research aims to identify whether a company's financial performance and reputation determine the customer's perception of the company, which affects their engagement. This study is based on the theories of engagement, stakeholder and signalling. Are customers engaged solely based on their feeling of satisfaction, or do employees and brand value play a role in this engagement?

Secondary data was collected from 14 automotive companies and empirically tested through a longitudinal study over the period 2010–2018. For panel data analysis this study used weighted least squares.

The variables proposed in this research, firm value and corporate reputation, were significant for the analysed panel sample. Furthermore, employee satisfaction influences customer engagement as an independent and moderating variable, just like brand value.

This research contributes to the emerging stream of customer engagement research by combining insight as a company-initiated resource, with the sheer transaction, integrating data obtained from employees and customers in an international context.

Corporations are confronted with growing demands to take a stand on socio-political issues, i.e. corporate social advocacy (CSA), which affects their reputation in the public. Companies use different CSA message strategies, including calling the public to support and act on the issue they advocate. Using reactance theory, the authors investigate the impact of CSA messages with a call to action on corporate reputation in the case of a company's gender equality initiative.

A one-factorial (CSA message with or without a call to action) between-subjects experiment was conducted by surveying 172 individuals living in Switzerland. The CSA messages were created in the context of gender equality.

The authors' study indicates that CSA messages with a call to action compared to those without overall harmed corporate reputation due to individuals' reactance, which is higher for CSA messages with a call to action, negatively affecting corporate reputation. The impact of the CSA message strategy with a call to action on corporate reputation remains significant after controlling for issue alignment and political leaning.

Communicating about socio-political issues, especially taking a stand, is a significant challenge for corporations in an increasingly polarized society and has often led to backlash, boycotts and damage to corporate reputation. This study shows that the possible adverse effects of advocating for socio-political issues can be related to reactance. It emphasizes that companies advocating for contested issues must be more cautious about the message strategy than the issue itself.

This study aims to examine the implications of short-term and long-term reputation change because of government agency responses to firm product defects.

This study’s findings have important implications for both scholars and practitioners. From a scholarly perspective, the authors create a more fine-grained examination of reputation that may be used to assess various performance dimensions. From a practice perspective, managers must realize that reputation can be one of an organization’s most important resources as it meets each of the valuable, rare, inimitable and nonsubstitutable criteria associated with those resources capable of providing sustainable competitive advantage.

Analysis of 17,879 product recalls from 15 automobile manufacturers in the US suggests that firms with higher long-term reputations are more likely to face regulator sanctions when a reputation-damaging event happens. On the other hand, firms with higher short-term reputations are less likely to face sanctions in such circumstances. Finally, firms whose short-term reputation exceeds their long-term reputation are less likely to be sanctioned by regulators when reputation-damaging events occur.

There are several limitations that should be addressed. First, as our reputation measure is based on government investigations of potential defects, vehicles that have never been inspected are not included in the sample. Although this number is likely extremely low, omitting vehicles that have never been inspected leaves out some high-reputation firms from the sample. In addition, the study relies on a single-firm stakeholder that is capable of punitive actions.

From a practical perspective, this study’s findings encourage managers to think about the temporal aspects associated with firm reputation, and to realize that stakeholders may react differently when their expectations are not met depending on an organization’s relative long- and short-term reputations. From a theoretic perspective, the primary contribution of this study is to illustrate how long-term and short-term changes in reputation can provide mixed signals to firm stakeholders regarding future performance.

This study explores the temporal aspects of firm reputation by examining how government sanctions vary depending on firms’ long-term (10 years) and short-term (1 year) reputation. The findings of this study contribute to current reputation research by illustrating the variation in government responses to product defects as a function of short-term and long-term reputation. In doing so, the important role of the timing of firm performance is considered.