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Status and Organizations
Status
and Organizations
Theories and Cases
Alexander Styhre
School of Business, Economic,
and Law
University of Gothenburg
Sävedalen, Sweden
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
Nature Switzerland AG 2022
This work is subject to copyright. All rights are solely and exclusively licensed by the
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in this publication does not imply, even in the absence of a specific statement, that such
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tion in this book are believed to be true and accurate at the date of publication. Neither
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Preface
Oscar Wilde (2016: 25) once remarked that, “Most people are other
people. Their thoughts are someone else’s opinions, their lives a mimicry,
their passions a quotation.” Wilde’s observation is that humans are not
only social beings, they are social being to the point where their indi-
viduality almost dissolves in the ambition to adapt to social demands and
expectations. Under these conditions, a human life is barely authentic—in
fact, this issue is beyond the point—as humans actively strive to over-
come their capacity to act with integrity and to instead become part of
what is a shared view of life. Wilde’s capacity to make accurate observa-
tions of human behaviors and all the follies that are part of everyday life
naturally supported his work as author and playwright, and his oeuvre
is an astonishing gift to posterity. Yet, the lingering concern is why
humans are willing to downplay their integrity and their individuality and
instead become part of something larger than themselves. Such questions
are likely to demand a considerable amount of deliberation and include
several complementary conjectures, but there is inevitably a certain attrac-
tion of being part of a social order, and to share a sense of social cohesion
wherein all individuals and artifacts are sorting themselves into neat cate-
gories that are neither questioned, nor subject to critical reflection. Such a
preference for ontological certainty is an irreducible component of what
is referred to as status, a term that denotes how hierarchical positions
in a human community confer authority and privileges to the individual
or groups of individuals. Regardless of whether the individual is ranked
v
vi PREFACE
high or low in the given status hierarchy, this social order is perceived to
be stable and predictable, and such qualities are greatly appreciated in a
world otherwise characterized by its fluid and changeable nature. Status is
what render a cognitively overwhelming social reality understandable and
predictable and thus bearable.
This volume examines the concept of status in an organization theory
and management studies setting. In sociology and in more specialized
disciplines such as marketing research and consumer behavior studies,
status has been widely recognized as a key analytical term when studying
individual or group-based behavior. In contrast, in organization theory
and management studies, other competing terms, such “authority” or
“legitimacy” that are closely aligned with a legal-administrative vocab-
ulary and analytical framework, have been used more frequently. Yet, the
concept of status is helpful when studying organizational practices that
align individual and collective beliefs and preferences (i.e., what people
believe) and their actions and activities (what they do). Furthermore, as
the concept of status, on the one hand, purports to mirror a fairly stable
and predictable social order, while, on the other hand, can be manipulated
and actively shaped, status is an important mechanism in simultaneously
making society both resilient and dynamic. Similar to analytical social
theory terms such as charisma or authority, status is a concept that on a
cursory inspection appears to apprehend the stable and predictable qual-
ities of human societies, while in fact the term itself is malleable and
porous, and subject to modifications and revisions. That means that the
concept of status is considerably more useful in, e.g., organization theory
and management studies than the current literature may indicate.
This volume does not intent to exhaust the topic of analysis but rather
seeks to provide an analytical framework wherein the concept of status is
given some significance. Furthermore, in the second half of the volume,
the concept is used to examine practices in three specific business fields
(urban development, video game production, and life science venturing).
Analytical terms gain their currency on basis of a number of qualities,
i.e., they are perceived to be consistently used, they are intriguing inas-
much as they apprehend some everyday life experience that otherwise
would be left unexplained, or they are applicable when structuring empir-
ical studies. Furthermore, analytical terms display a certain fashion cycle
movement, i.e., they fall in and out of fashion in the same way as the
ebb and flow of the sea changes on basis of astrophysical forces. Whether
status as analytical term is more or less fashionable for the time being
PREFACE vii
is not the key point to make here, the point instead is that in order to
understand a human society wherein its individuals are actively striving to
overcome their genuine beliefs and preferences demands analytical terms
that denote the social mechanisms that are conducive to such accomplish-
ments. As will be stated in this volume, status is one such analytical term
and it arguably deserves a more widespread use than is possibly the case
for the time being.
∗ ∗ ∗
I am grateful for having this book commissioned and thus would like to
Marcus Ballenger, commissioning editor at Palgrave Macmillan. I would
also like to thank all my colleagues at the School of Business, Economics,
and Law, University of Gothenburg, for all intellectually stimulating
discussions over the years, dearly missed during the gruesome COVID-
19 pandemic that lingered on for longer than most people were prone
to believe. A specific thank to the following group of people with whom
I have collaborated with recently: Kajsa Lindberg, Sara Brorström, Björn
Remneland-Wikhamn, Fredrik Lavén, and Ola Bergström.
Reference
Wilde, Oscar. 2016. Only dull people are brilliant at breakfast. London: Penguin.
Contents
ix
x CONTENTS
Bibliography 175
Index 193
CHAPTER 1
buy stocks in a company that has recently filed for bankruptcy? The
Hertz decision needs to be understood within the broader legal-financial
context of American market regulation, wherein investors may choose to
buy stock in an insolvent company if they believe that the bankruptcy
will result in the restauration of the business activities under a so-called
Chapter 11 bankruptcy (Skeel 2020; Macey and Salovaara 2019; Altman
and Benhenni 2019). Buying such stock is thus a form of speculation on
basis of an option-pricing model reasoning.
Prior to Hertz bankruptcy filing and the proposal to issue new stock,
the finance market trader platform Robinhood reported that nearly
43,000 Robinhood accounts owned Hertz shares, but in June 2020, that
number “skyrocketed to 171,000” (Casey and Macey 2020: 6). Appar-
ently, the grass-root speculators using the trader platform Robinhood
had a belief in Hertz’s ability to return to business operations after the
pandemic, and the evidence that anyone active in the market was willing
to buy Hertz stock prompted company actors to elaborate on the idea to
issue new stock, even as the company was currently filing for bankruptcy.
The Securities and Exchange Commission (SEC), one of many finance
market regulation agencies, eventually blocked the stock issuance activity
on basis of some legal detail, which undermined Hertz’s plans to capi-
talize on basis of quite curious market conditions. However, as Casey and
Macey (2020: 16) remark, SEC is a primarily a disclosure agency and
does not have the authority to ban a public offering “simply because it
thinks something is a bad investment.” Just like any other market actor or
regulatory agency, SEC officials have a hard time to distinguish between
informed speculation and “irrational exuberance,” and this was also the
case here.
As market analysts will never learn what would have happened if Hertz
would have issued more stock to finance its way out of bankruptcy, it
is hard to tell whether there were rhyme and reason in this financial
offering. What could be said, though, is that Hertz’s top management
team and legal counselors failed to recognize the status of the corpo-
ration. Hertz’s top management team and legal counselors believed they
had robust support among informed traders acting on basis of the Robin-
hood platform, and when their prospect was accepted by a legal court,
they continued the work to recapitalize the company. But this empirical
evidence and legal right to proceed ignored the fact that trade is per se the
outcome from asymmetric expectations or asymmetric tolerance for risk.
This means that it is most difficult for both corporate executives and for
1 STATUS AS CONCEPT AND SOCIAL FACT 3
concept that has the capacity to shed light on, or even explain a variety of
empirical conditions. That is, rather than being a more narrowly defined
term that primarily applies to certain allocation problems and/or decision
making activities shaped by the absence of more robust data or infor-
mation, status is here understood as a term that denotes an elementary
social mechanism, having the potential to better allocate resources in a
more efficient manner, but also to generate the opposite effect, i.e., to
overcompensate certain groups beyond what can be justified on basis of
meritocratic measures and evaluations. Having said that, it is important to
remark that it is reasonable to be agnostic regarding the effects of the idea
of social status: it can cause good and its can cause harm depending on
context and situation, but there are no reason to assume that the concept
of status per se is biased in either direction. This means that status is a
dual social mechanism or a double-edged sword, doing good and doing
harm in proportions that are dependent on how the concept is defined
and how it is enforced and regulated in an actual market context, or an
in wider social domain.
Social status may be associated with social theory and the behav-
ioral sciences, but one of the central tenets of this volume is that status
generates economic (i.e., material) effects, sometimes being favorable,
sometimes being less appreciated. This means that status is an economic
and managerial term that have the potential to explain both successes and
dysfunctions in the economic system. This also means that comparably
weakly defined analytical concepts such as status has a role to play outside
of consumer behavior and HRM studies, regardless of the merits of such
scholarly ambitions. This volume is thus written with the ambition to
explain the concept of status and to make it an analytical term sufficiently
robust to lend itself to empirical studies and substantiations.
they can hope that their sons may achieve comparable success. It happens
often enough to underline the possibility” (Berle 1963: 136). The 1960s
became a turbulent decade in the USA, with the assassinations of Pres-
ident Kennedy, his brother, the congressman Robert Kennedy, and the
civil rights activist pastor Martin Luther King, and included considerable
social turmoil as the citizens’ right movement and the women’s libera-
tion movement unfolded side-by-side with the increased (and eventually
failing) military operations in Vietnam. Today, more than six decades
later, few informed commentators would share Berle’s (1963) enthusiasm.
In fact, substantial evidence speaks against the American Dream credo:
social mobility is in decline (Quiggin 2010: 160–161), the middle class is
shrinking (Davidson 2014; Faux 2012; Scott and Pressman 2011; Frank
2007), and economic inequality is growing sharply in the USA (Pfeffer
and Waitkus 2021: 577–578; Berman 2021: 73). However, despite such
evidence of a less dynamic society, there is still a firm belief in the alloca-
tive efficiency of economic resources on basis of merits rather than social
status (and inherited social status more specifically). Newfield (2003: 95)
explains how the value of a meritocratic allocation of resources:
The strength of the concept of meritocracy lies in its core idea that social
position and economic resources should be assigned by merit rather than
by birth, wealth, race, color, gender, national origin, perceived connec-
tions or any other characteristic not tied to actual performance. Since it
opposes power based on such factors, meritocracy has frequently been
a central component of political reform movements. Faced with a rapa-
cious, mediocre aristocracy, a corrupt municipal government, or a captive
insurance commission, reformer may invoke the concept of meritocracy to
replace inherited wealth, political cronies, and incompetent puppets with
people trained to perform a function according to professional standards.
(Newfield 2003: 95)
hierarchy as few elite institutions care about formal merits, but only as
long as former affiliations are consistent with the status preferences of
the recruiters. These two cases are primarily anecdotal but they neverthe-
less underline how formal and official acclaims of meritocratic selection
mechanisms are easily sidelined when other, potentially less honorable
interests and preferences, say, the ambition to preserve an elite culture,
are considered (Rivera 2015).
The concern is not just that social actors and organizational repre-
sentatives make official declarations, but also adhere to private beliefs
regarding non-meritocratic qualities that undermine the substance of the
official declarations, but also that the gradual decline of meritocratic allo-
cation mechanisms generate externalities. For instance, “in a meritocratic
system,” Hattersley (2006: 5) remarks, “there is always the temptation
to believe that those who fail the test of merit have only themselves to
blame.” Rather than considering two beliefs systems, one premised on
meritocratic allocation mechanisms and one on nepotism, as being insti-
tutionally embedded and consequently generating winners and losers as
a structural feature of these systems, blame is shifted to the actors that
never had the chance to influence how the rules for, e.g., the selec-
tion of candidates were determined in the first place. In summary, in a
historical perspective, meritocratic values have been advanced as being
an elementary selection and allocation mechanism in a market society,
but this mechanism is constantly challenged by competing norms, e.g.,
social norms expressing a preference for social homogeneity in, e.g., elite
institutions, or in professional groups or occupational communities tradi-
tionally characterized by a high degree of homogeneity. In terms of the
concept of status, this analytical concept is riddled by tensions as the
everyday semantic meaning of the term indicates that certain groups or
individuals acquire benefits that cannot be fully justified on basis of their
credentials, merits, or track records. That is, already from the beginning,
the concept of status is burdened by its deviation from social norms
and beliefs regarding the value and fairness of meritocratic selection and
allocation of resources.
condition that social actors are concerned with, it would gradually disap-
pear from everyday conversations and scholarly vocabularies. It is thus
plausible that the concept of status is introduced in a society wherein
status, on the one hand, is affirmed as a recognition of personal accom-
plishments, while, on the other hand, such accomplishments must be
genuinely individual (and not supported or assisted by other actors) to
be fully legitimate. Karen Lee Ashcraft (2017), speaking candidly about
her own career and lifestyle choices, says that her acquaintances first
recognize and affirm her success in qualifying as a tenured full professor,
but gradually revalue her accomplishments when they learn that Ashcraft
is unmarried and without children, suddenly questioning not only her
lifestyle choices and career but also diminishing her scholarly credentials
in light of the new information. “How hard can it be then?,” they ask.
This example is illustrative of a commonplace predicament of high-status
actors: on the one hand, certain criteria for professional performance and
career accomplishments are stipulated and applied, but such credentials
are also (or eventually) complemented by additional assessment criteria,
imposed to contextualize their original assessment. Such dual assessment
of merits is potentially more pronounced for women or any member of
an underrepresented community in a specific high-status community. This
is analytically spurious as the analyst associate or even impose a causal
relation between documented credentials and other lifestyle choices.
Ashcraft’s (2017) career and her other lifestyle choices may be totally
separated, but social norms that prescribe that women should have fami-
lies and rear children are introduced as a condition that suddenly cast a
shadow of doubt over documented accomplishments, at the same time
as it is implausible that the evaluator has any meaningful understanding
of, or detailed information regarding how these two spheres of a human
activities are related.
Furthermore, empirical evidence indicates that in many cases, status is
not effectively grounded in, e.g., formal credentials and other objective
measures, which weakens the relation between status and any material
claims. Collins (1979) found a surprisingly weak correlation between the
requirements of educational credentials and the skills/knowledge require-
ments of jobs. From this result, Collins (1979) deduces that the primary
role of tertiary education is to confer authority to individuals with an
education diploma so that they can acquire the professional role confi-
dence to act in their future professional role and to make the hard
decisions needed in that role. Tertiary education is, therefore, largely
10 A. STYHRE
Another case of how status play a more marginal role than one may
originally believe is in the domain of business venturing and entrepreneur-
ship, where entrepreneurs in, e.g., the fabled Silicon Valley computer
science cluster in the San Francisco Bay Area, are less attracted by
the prospect of making money than by the possibility to make tech-
nological improvements: “Although many Silicon Valley entrepreneurs
became millionaires, most appear to have been motivated less by money
than by the challenge of independently pursuing a new technological
opportunity,” Saxenian (1994: 38) writes. Again, external evaluators may
second-guess why entrepreneurs were attracted to the industry, but the
status that such evaluators associate with economic wealth may have
played only a marginal role for these actors (at least originally), which
means that social norms regarding how status is acquired (e.g., by accu-
mulating personal fortunes) may have limited explanatory value ex post.
In this case, status is a useful analytical term, but it is also deceptive
inasmuch as it may mislead external evaluators to inadequately describe
situations and choices made on basis of their own and others’ social norms
and beliefs regarding how status is acquired. That is, to introduce the
concept of status as a condition that incentivize individual actors may
result in bias, at the same time as status apparently play a key role for
many social actors, it is reasonable to consider status as a social fact in the
Durkheimian sense of the term, e.g., as a institutionally embedded condi-
tion that generate social effects on basis of collective but uncoordinated
1 STATUS AS CONCEPT AND SOCIAL FACT 11
The greater the one’s status, the more profitable it is to produce a good
of a given quality. More simply put, whereas the economic view of signals
begins with differences in quality between producers and then derives as
signals whose attributes for which the marginal cost of that signal is greater
for the low-quality producer that for the high-quality producer, the soci-
ological view takes as its point of departure the reality of the signal and
then derives the differences in quality on basis of who possesses the signal
and who does not. (Podolny 1993: 841)
The status effect denotes that the marginal investment done by a high-
status corporation generates comparably higher returns vis-à-vis that of
the lower-status corporation’s investment, all things equal. “[H]igh status
is associated with increased revenue for a given level of performance,”
Sauder et al. (2012: 270) write. This means that originally entrenched
status positions can be self-reinforcing, i.e., more value is acquired by
high-status corporations than would have been the case if status effects
were eliminated. This condition has prompted a series of empirical studies
that underline how already successful corporations (or individual actors)
benefit in excess of what can be justified on basis of actual performance,
referred to as the so-called Matthew Effect (from a passage in the Gospel
of St. Matthew that predicts that those who have shall be given more,
whereas those who have little shall lose their share).
In addition to immediate consequences regarding marginal returns
on investment, Sauder et al. (2012: 270) point at benefits following
a higher-status position. First, status may lower certain input costs as,
e.g., suppliers are willing to lower they margin to supply to high-status
producers. Second, high status tends to increase a corporation’s “access
to survival-enhancing opportunities and assets” (Sauder et al. 2012: 270).
Given these immediate and in many cases lasting effects of status differen-
tials in industries and organizational fields (say, in the domain of tertiary
education and universities), it is important to make a distinction between
status and reputation. Pollock et al. (2015: 484) propose that status
“[p]rimarily reflects perceptions of an organization’s position in a social
hierarchy based on observable patterns of connections.” In contrast,
1 STATUS AS CONCEPT AND SOCIAL FACT 13
1 Brown’s (2020) wide-ranging account of the unprecedented career of the Beatles and
its social significance in the 1960s describes for how Ringo Starr (né Richard Starkey) was
concerned with his own family starting to treat him as some celebrity figure during family
events that Starr apparently regarded as an off-stage, back-office situation, and a retreat
from the celebrity circuit; he and the other members of the band were catapulted into.
“Suddenly I was ‘one of those,’ even within my family, and it was very difficult to get
used to. I’d grown up and lived with these people and now I found myself in weirdland,”
Ringo said (Brown 2020: 110). As this was an uncanny situation, Starr kindly asked his
family to stop acting this way.
18 A. STYHRE
individuals into celebrities are such a vexing concern for some individuals:
suddenly an individual can no longer escape social judgment regarding
your performance, personality, lifestyle choices, etc. being passed, and
often in public forums such as news media reporting and in the cultural
circuits of celebrity culture. In the end, Gould’s (2002) functionalist
model of status ordering underlines how status is a relational term and
a socially embedded construct, consistent with a Durkheimian social fact.
To further illustrate the value of the Durkheimian concept of social
facts, McDonnell and King’s (2018: 64) study of how corporate discrimi-
nation cases that end up in court are affected by status is helpful. American
legislation bans discrimination on basis of, e.g., racial, ethnic, and reli-
gious grounds, and if, e.g., an applicant for a position in a company
believes he or she is subject to discriminatory decisions and/or forms of
decision bias, such cases can be determined by a court of law. McDon-
nell and King (2018: 64) propose that actors that have a high status
have an advantage vis-à-vis low-status actors inasmuch as “[p]eople tend
to infer less blame and responsibility for actors’ bad actions when they
have pre-established positive expectations about the actor.” McDonnell
and King (2018) refer to this advantage as the “halo effect,” a form of
status-induced image that makes it more complicated for the plaintiff to
convince judges and juries that an individual has been wronged by the
defendant. In empirical terms, this means that “[p]restigious companies
are less likely to be found liable when discrimination charges are brought
against them” (McDonnell and King 2018: 78). More specifically, presti-
gious companies here mean “larger companies,” and companies domiciled
(i.e., having their headquarter) in the state in which the suit is brought,
two conditions that make it less likely that the court finds them liable
(McDonnell and King 2018: 78). In the Durkheimian sense of the term,
the halo effect is a social fact as it is both grounded in factual conditions
(say, firm size and domicile) and as it generates material and social effects,
i.e., companies with certain qualities are less likely to be found liable for
discriminatory practices.
At the same time as the halo effect protect high-status companies in
the event of actual court cases, this category of companies is exposed to
certain risks as their “reputational standing” make them more vulnerable
to campaigns orchestrated by activist groups if they fail to live up to their
status. A company that markets itself as being a “green company” and
being is concerned with sustainable production, yet fails in its ambition,
it is more likely to be targeted by activists than a company that does not
1 STATUS AS CONCEPT AND SOCIAL FACT 19
fashion such an image of itself. McDonnell and King (2018: 64) refer to
this higher risk as a “halo tax,” being the risk of additional costs incurring
the company fails to act consistently with its own stipulated role and its
public image. Taken together, investment in qualities that generate a halo
effect may be justified regardless of the halo tax, but both consequences
of investment in a status position and a reputational capital are social facts
that need to be understood as such.
Sociologists, anthropologists, and other social science discipline
scholars that conduct ethnographic studies in situ have indicated that not
only abstract entities such as corporations or professional communities
are bestowed with a halo: also material things can carry a symbolic capital
that confers authority to the user of the material, tool, or machinery can
benefit from. Fine’s (1996) study of restaurant kitchen work and the work
of restaurant chefs demonstrate that, e.g., knives (a variety of specialized
knives are used for different foodstuff) have a strong symbolic value. A
good chef knows how to handle and to take care of his or her knives, and
there is a fair share of horror stories circulating in the community that
underline the value of handling the knives professionally and carefully.
In short, knives are tools with a certain halo that needs to be explained
on basis of social conditions and relations. Furthermore, Fine (1996: 93)
argues that the stove, being a “sacred place” in the restaurant kitchen, is
associated with more prestigious work assignments, whereas “cold dishes”
such as salads belong to the domain of novices and consequently have
lower status and no halo. In the world of restaurant chefs and other
workers, the kitchen is a spatially structured site wherein specific tools and
machinery serve as material objects that structure the social organization
and signals their status positions. Any violations of the rules imposed by
this social organization may result in additional costs, and/or grievances
from actors who comply with the traditional organization. The halo of
material resources, an expression of their status, is thus best understood
as being social facts that generate material consequences within a domain
of work.
research indicates that such cognitive bias has been complemented by new
selection methods that reduce the influence of unjustifiable gender status
beliefs, but that the outcomes are mixed. In some cases, cognitive bias
cannot be circumvented despite the presence of more robust performance
data (Castilla and Benard 2010; Castilla 2008), while in other cases,
new approaches have been proved to result in improved gender equality
(Rivera and Tilcsik 2019; Goldin and Rouse 2000). Such evidence indi-
cates that status and the effects of status beliefs need to be studied in situ,
and under the influence of specific institutional conditions and organiza-
tional and professional practices. In other words, status is a situated and
contingent on term that is established under local conditions.
and that demand considerable finance capital investment, and that are
dependent on stable political relations over at least the project period,
and preferably longer. In this setting, awards being issues by, e.g., industry
interest organizations may serve an active role in conferring authority and
legitimacy to key actors. An award is a field-specific mechanism that gener-
ates more robust and resilient social relations, which also increases the
likelihood that complex and costly urban development projects will be
finalized as planned.
Chapter 5 examines another industry from a status theory perspec-
tive, namely the video game industry, and more specifically how so-called
indie studios are dependent on third parties to better marketing their
new product releases. As indie studios, smaller and more thinly capital-
ized video game developing companies, tend to have limited resources
to invest in marketing campaigns, they seek to build gamer communities
that act as their primary audience and client base. In order to generate
a “buzz” around a new game being released, influencers and YouTubers
are involved in the work so that it generates benefits for both indie devel-
opers (being in demand of a channel to market its games) and influencers
(in demand of qualitative content to attract their current and new “fol-
lowers”). The status of the influencer is thus a resource that the indie
developer actively seeks to exploit to its own benefit.
Chapter 6 discusses how a high-status pharmaceutical company’s
business incubator/accelerator generates positive effects for life science
companies re-located to the incubator. Similar to the case of the indie
video game developers, life science companies in a development phase
are frequently undercapitalized, i.e., they need to commit a considerable
proportion of their resources to raise new funds to finance the develop-
ment work. If being more closely associated or affiliated with a major
market actor, life science companies may benefit from lower thresholds
when raising new venture capital as finance capital investors regard the
selection process as being indicative of the selected life science compa-
ny’s market potential and prospects. That is, the status of the company
managing the incubator serves to signal to venture capital investors that
certain life science companies admitted to the incubator have qualities
that potentially make them attractive investment objects.
The final chapter of the volume, Chapter 7, summarizes the theoret-
ical propositions addressed in the book and discusses their implications
for companies and organization. Status is frequently examined on the
level of individuals (say, executive decision makers, or celebrity figures) or
1 STATUS AS CONCEPT AND SOCIAL FACT 23
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PART I
Theoretical Perspectives
CHAPTER 2
Introduction
As indicated in the Chapter 1, status is a positive concept inasmuch as it
provides actors with distinct and lasting advantages vis-à-vis lower-status
actors, ceteris paribus. At the same time, as status is a social fact and the
effect of institutional conditions that the individual agent cannot fully
control, status is also subject to manipulations, fabrications, and external
status shocks that gradually, or at times monetarily restructure the alloca-
tion of status within a specific field. That means that status, high or low,
can never be taken for granted or be presumed to exist for a predictable
future. On the contrary, status is a social position embedded in nested
institutional conditions that in turn are determined by social actors that
may, or may not, be interested in changing current status positions. This
chapter reviews relevant literature that either theorizes or reports studies
of status disruptions or status changes. The practical and managerial impli-
cations are that actors that rely on a status position that include a signaling
of a commitment to certain social norms (say, a conservative politician
that publically honors a pater familias persona) needs to ensure that
such widely circulating images are not threatened by evidence or rumors
that cast a shadow of doubt over the authenticity and robustness of such
images and roles. Status is thus preferably seen as resources to be managed
wisely, especially in fields where unfavorable reputations are easily and at
low cost used by other contestants to gain personal benefits and advan-
tages. The capacity to influence and shape status positions is arguably
why many people are intrigued, at times even obsessed with high-status
persons and/or organizations. A celebrity who falls from grace and reveals
human weaknesses are in equal proportion (depending on the cause of
the status loss, naturally) likely to receive criticism and reprimands as he
or she will be embraced for being all-too-human in failing in the unfor-
giving light of news reporting and public gossiping. In most cases, the
status-as-social-fact proposition predicts, status is earned as actors behave
in ways that are consistent with social norms, and consistent with the
conceptual distinction made between status and reputation, wherein repu-
tation is more fickle than status is, which means that in order to influence
someone’s status, there is a need for a detailed understanding of how
social status is conferred to individual actors in the first place. How these
mechanisms and devices operate in the domain of status allocation will be
examined in this chapter.
Ostentation and excess are morally suspect and thus associated with illegiti-
mate privilege. In contrast, reasonable consumption and being ‘normal’ are
morally upstanding in their association with core ‘values’ such as modesty
and prudence, and thus legitimate privilege. Hard work is one side of
the coin of legitimation; reasonable consumption emerges as the other.
(Sherman 2018: 412)
Such stories are easier to sell if you are an example of the “self-made
man” (with “man” here denoting a human rather than a person of male
gender) who has created your own fortune. If wealth is either inher-
ited, or acquired through marriage or through other social relations,
the aspiration to prudence and modesty is perhaps more understand-
able. Nevertheless, under all conditions, status anxiety can work in both
directions: as being a source of self-doubt and grievances on part of the
individual or the community that believe they are underappreciated, and
as a mechanism that incentivizes wealthy households to downplay their
lifestyle choices and its costs to evade the potential skepticism of the wider
public. To be underappreciated is one form of predicament, but to be at
risk to be shamed for inherited or earned wealth is also considered as a
social concern that needs to be handled.
(Hahl et al. 2017: 830). In brief, to cope with uncertain status positions,
popular culture and preferably low-brow culture is endorsed.
In the experimental situation, Hahl et al. (2017: 830) participants were
manipulated (on basis of a tournament competition) to “see themselves
as members of a social category that is high-status,” yet the partici-
pants suspected that this classification was inauthentic and not justified on
reasonable grounds. Under these conditions—participants believe they are
assigned a high-status position but are privately not convinced regarding
the authenticity of this social position—Hahl et al. (2017: 830) demon-
strate that these subjects “[e]xhibit greater demand for paintings that
are lowbrow and authentic (relative to those that are lowbrow and inau-
thentic) than do counterparts who either (1) see themselves as low-status
or (2) see themselves as high-status but are not insecure about their
authenticity.” In Hahl et al. (2017: 846) experimental model, the insecu-
rity that high-status actors often “feel about their authenticity” prompts
them to embrace what they themselves regard as being authentic, either
as a private belief or as a public signal to audiences that they believe may
share their own concern regarding the legitimacy of their high-status posi-
tion. While such experimental results are interesting for the analysis of
status as social fact, it still needs to further examine what “authenticity”
denotes in the eye of both the experimental subjects and their audiences: