Abstract

The relationship between online reviews and a firm declaring bankruptcy may seem unlikely. However, notwithstanding the lack of quality in relation to products or services, there is a strong anecdotal commentary on how firms lose business due to bad reviews, despite the perceived high quality of products. As such, this short paper attempts to evoke a critical dialogue on the question, “Do instantiated or malicious review cause firms to lose business beyond recovery?” The paper provides exploratory evidence and attempts to provide a theoretical basis that explains this potential issue faced by millions of businesses around the world and contributes to identifying any possible pattern between negative online reviews and bankruptcy, theoretical foundations, and provides practical suggestions to mitigate the risk of bankruptcy for businesses by better managing the influx of negative reviews. Further, this paper will identify avenues for future research.

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Paper Number 1608; Track E-Business; Short Paper

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