Online Outrage: The Impact of Negative Social Media on Stakeholder Perceptions and Behaviors

Abstract

Stakeholders frequently encounter a diverse array of social media content about firms. Although existing research has examined how organizations use social media to influence stakeholders and vice versa, it has largely overlooked how one stakeholder's post about a firm can influence the perceptions and behaviors of other stakeholders. Furthermore, scholars have given limited attention to the psychological mechanisms that shape stakeholder perceptions and drive subsequent actions. Drawing on stakeholder theory and organizational–stakeholder (O–S) misfit theory, I investigate how two dimensions of perceived misfit, value incongruence and strategic incompatibility, affect the degree of stakeholder behavior in the context of social media backlash. Additionally, I examine how sentiment negativity and post virality interact to shape these misfit perceptions. To test the proposed relationships, I use a 3 × 2 × 2 between-subjects experimental design (N = 1,076) and apply Bayesian ordered logistic regression, structural equation modeling, and response surface methodology. I conclude by discussing the theoretical and practical implications of the findings.