Scholars often assume that reference groups are industry-wide, homogeneous, and stable. We examine this assumption and suggest hypotheses based on managers’ motivations such as self-enhancement and self-improvement, social identity, and affiliation-based impression management. We test hypotheses on failure-induced changes in reference groups and their direction in terms of upward and downward comparisons. An empirical examination of changes in reference groups for firms listed on the Dow Jones Industrial Average Index between 1993 and 2008 shows that performance below social aspirations induces changes in reference groups and toward upward comparisons. The results indicate that managers can choose to change the reference group – a cognition-centered response – as an alternative to such action-centered responses as organizational search and risk-taking in response to poor performance from social aspirations and that upward comparisons may be the result of social performance shortfalls to give a better impression and to improve firm performance.

The present study had several aims: to examine horizontal/vertical individualism/collectivism in a New Zealand Māori sample; to determine whether these cultural orientations contribute to academic self-enhancement; and to investigate if self-enhancement affects intentions to continue studies in higher education. A quantitative questionnaire was distributed to a nonprobability convenience sample of 71 Māori university students. All participants had either studied within the past year or were currently studying, and were recipients of a Māori-specific bursary for higher education studies. Results revealed the sample scored high on measures of horizontal collectivism and academic self-enhancement. ANOVAs showed some significant differences between our sample and other cultural samples on some of the cultural orientations. A series of standard multiple regressions revealed that combined, the cultural orientations predicted academic self-enhancement, although only horizontal collectivism made a significant negative contribution. Academic intentions were not predicted by self-enhancement. The findings have implications for policy development and educational strategies oriented toward enhancing the academic success of Māori in higher education.