eprintid: 10195583
rev_number: 7
eprint_status: archive
userid: 699
dir: disk0/10/19/55/83
datestamp: 2024-08-09 08:44:12
lastmod: 2024-08-09 08:44:12
status_changed: 2024-08-09 08:44:12
type: article
metadata_visibility: show
sword_depositor: 699
creators_name: Sands, Daniel B
title: Double‐edged stars: Michelin stars, reactivity, and restaurant exits in New York City
ispublished: inpress
divisions: UCL
divisions: B04
divisions: F49
keywords: evaluations, ratings and rankings, reactivity, restaurant industry, status, third parties, value creation and capture
note: © 2024 The Author(s). Strategic Management Journal published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/).
abstract: RESEARCH SUMMARY: This article develops a theoretical framework to explicate how third parties, who are not transactionally involved in a given exchange relationship, can promote or impede the creation and capture of value by influencing market actor beliefs and behaviors. I investigate these issues empirically through an abductive mixed‐method case study of the Michelin Guide's entry into New York City. An examination of two decades of the openings and closings of New York City's elite restaurants indicates that receiving a Michelin star corresponded to an increased likelihood of restaurant exit. Michelin stars appear to have fostered disruptions at recipients' upstream and downstream interfaces, which inhibited their ability to capture value. This ultimately underscores how value network reactivity to third‐party evaluations may lead to unintended consequences for firms: MANAGERIAL SUMMARY: This article explains how third‐party evaluators' reviews, ratings, and rankings can promote or impede the creation and capture of value. This occurs because third‐party evaluations engender reactions by those being evaluated, as well as reactions by other market actors such as competitors and exchange partners. I study these issues within the context of the Michelin Guide's entry into New York City, and my findings indicate that restaurants that received a Michelin star were more likely to close in subsequent years. Evidence suggests that intensified bargaining problems with landlords, suppliers, and employees, along with heightened consumer expectations, created new challenges for these Michelin‐starred restaurants, which ultimately made it more difficult for them to stay in business.
date: 2024-08-06
date_type: published
publisher: Wiley
official_url: http://dx.doi.org/10.1002/smj.3651
oa_status: green
full_text_type: pub
language: eng
primo: open
primo_central: open_green
verified: verified_manual
elements_id: 2303392
doi: 10.1002/smj.3651
lyricists_name: Sands, Daniel
lyricists_id: DBSAN98
actors_name: Sands, Daniel
actors_id: DBSAN98
actors_role: owner
full_text_status: public
publication: Strategic Management Journal
citation:        Sands, Daniel B;      (2024)    Double‐edged stars: Michelin stars, reactivity, and restaurant exits in New York City.                   Strategic Management Journal        10.1002/smj.3651 <https://doi.org/10.1002/smj.3651>.    (In press).    Green open access   
 
document_url: https://discovery.ucl.ac.uk/id/eprint/10195583/1/Sands%20SMJ%202024%20Michelin%20stars%20reactivity%20and%20restaurant%20exits.pdf