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Code and conduct in French cuisine: Impact of code changes on external evaluations

Abstract : We study the effects of organizational code-preserving and code-violating changes on external evaluations by third parties - an essential but under-studied strategic outcome. We define code-preserving changes as a variation in the firm's product range that preserves the social code within which the firm positions its offering. By contrast, a code-violating change corresponds to a variation in the product range that breaks with past codes and embraces another social code. Our analyses of French haute cuisine restaurants show that code-preserving changes and code-violating changes have positive effects on external evaluations. Both effects decline with prior evaluations received by the organization, but only the effect of code-violating changes is reduced with age. Moreover, external evaluations improve when restaurants undertake more code-preserving changes than their direct competitors but decline when they make more code-violating changes than competitors. These results enable us to derive implications for research on strategic change, strategic groups, and strategic social positioning
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Contributor : Antoine Haldemann Connect in order to contact the contributor
Submitted on : Wednesday, February 24, 2010 - 8:57:44 AM
Last modification on : Saturday, June 25, 2022 - 10:50:33 AM

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Rodolphe Durand, Hayagreeva Rao, Philippe Monin. Code and conduct in French cuisine: Impact of code changes on external evaluations. Strategic Management Journal, Wiley, 2007, Vol. 28, n° 5, pp. 455-472. ⟨10.1002/smj.583⟩. ⟨hal-00459450⟩



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