Exploring Optimal Distinctiveness Through ESG Impression Management: Implications for Organizational Reputation
摘要
Drawing on the theory of optimal distinctiveness, this study explores the role of strategic convergence and strategic distinctiveness in proactive impression management, contributing to the literature on both optimal distinctiveness and impression management. We find that, in contexts characterized by high institutional pressure, firms following a strategy of convergence tend to employ clear language strategies, while those pursuing strategic distinctiveness are more likely to use ambiguous language in order to balance differentiation and legitimacy. This suggests that firm management, when facing varying levels of institutional pressure, may consider different ESG disclosure strategies for impression management, aiming to achieve “optimal distinctiveness.” Notably, we find that these impression management strategies are effective, as different language choices enhance the firm’s reputation. Our conclusions are significant because they highlight the application of optimal distinctiveness theory in the selection and process of ESG impression management strategies.