MANAGEMENT & ORGANIZATIONS


JASON GREENBERG ASSOCIATE PROFESSOR


Cornell Peter and Stephanie Nolan School of Hotel Administration


Cornell SC Johnson College of Business Cornell University


Rating systems and increased heterogeneity in firm performance: Evidence from the New York City Restaurant Industry, 1994-2013 Strategic Management Journal, 45, 1, January 2024 LINK TO PAPER LINK TO JASON GREENBERG VIDEO


Co-authors • Jason Greenberg


Associate Professor, Cornell Peter and Stephanie Nolan School of Hotel Administration, Cornell SC Johnson College of Business, Cornell University


• Daniel B. Sands, University of Central London School of Management • Gino Cattani, Stern School of Business, New York University • Joseph Porac, Stern School of Business, New York University


Summary Easy access to online expert and crowd-sourced ratings information, along


with the range of options on offer, has altered how people make consump- tion choices. Te aggregate impact of individual consumer decisions has the potential to dramatically affect market-level outcomes, such as com- parative firm performance. Accordingly, managers have noted the strategic importance of ratings, rankings, and evaluations in crafting their business strategies and customer relationship management procedures. Under- standing how the dramatic expansion of ratings systems have affected firm performance is a pressing issue for both strategic management scholars and practitioners.


Te authors investigate the extent to which the increasing availability of ratings information has affected heterogeneity in firm performance. Using a unique dataset to examine these questions in the context of the NYC restau- rant industry between 1994 and 2013, they find that firms serving tourists and expensive market segments experienced increasing sales discrepancies as a function of rating differentials when ratings information became more easily accessible, with the advent of online rating platforms.


CONTENTS TO MAIN | RESEARCH WITH IMPACT: CORNELL SC JOHNSON COLLEGE OF BUSINESS • 2024 EDITION 30


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85