The Impact of Media Information on Issue Salience Following Other Organizations’ Failures

Vinit M. Desai
Journal of Management, vol. 40 no. 3, March 2014, pp. 893-918

Research on organizational decision making seeks to understand how external events shape how organizational decision makers attend to particular issues and allocate scarce resources across the organization’s activities. The author investigates whether supplemental information available to decision makers about their own and other organizations impacts this process. He finds that media coverage about particular issues following failures throughout the field can influence decisions regarding resource allocation and that coverage about other organizations may in some cases be more influential than coverage about the focal firm. The study and its findings forward our understanding regarding how organizations scan their environments and how multiple, interacting forms of external information may collectively influence internal organizational processes.