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Corporate Reputation & Firm Performance: Empiricial Literature Evidence
International Journal of Business and Management
Abstract
For ages, the view that corporate reputation positively impacts on firm performance has been documented; even accounting literature backs the notion that corporate reputation causes an enormous amount of wealth encapsulated in what is called goodwill, while some conventional wisdom assert that the reputation which organizations orchestrate for themselves do cause sustainable profits. These views have attracted quite a lot of scholars to structure research in so many areas of corporate reputation, and the body of knowledge on this subject is indeed not only increasing but deepening also. Reputation is an intangible asset and intangible assets are now increasingly seen as drivers of sustainable competitive business and corporate advantages. Thus, intangible assets like reputation are increasingly researched as sources of sustainable advantages. Research reveals that today what is usually called brand equity or corporate equity is actually determined by corporate reputation. Although reputation may be seen to arise as an output of different activities in the professions, the reputation an organization enjoys is actually constructed by the publics of that organization on the basis of information about the organization’s relative position to other organizations in the industry. It can arise out of consumers’ satisfying experience with the company’s products hence it can be inherited from an organization’s past actions. This work is a review of empirical studies on corporate reputation with emphasis on how it can help organizations achieve strong competitive advantage, enhance stock market performance as well as performance values on other measures. This work reveals that cultivating a strong reputation is a necessary foundation for today’s firms that intend to beat the competition, enhance their market outlook and financial performance as well as sustained existence. Corporate reputation is however also revealed to be a logical outcome of the quality of corporate governance operated in an organization. It is a critical resource, and indeed a pillar, upon which the quality of an organization’s future can be predicated. The paper concludes that the best material wisdom in today’s corporate and political spheres is the wisdom to have a good reputation because it pays to have a very good positive image.
... The common premise among these theoretical perspectives is that the organization can define and create its reputation. In contrast to the idea that an organization can create its reputation is the premise that a reputation is earned, based on what the organization does (Adeosun & Ganiyu, 2013; Bergh, Ketchen, Boyd, & Bergh, 2010; Iwu-Egwuonwu, 2011). This perspective can be seen in Fombrun's (1996) original definition of corporate reputation. ...
... The organization's nature and behavior is how well the organization does what it intends to do (Foreman, Whetten, & Mackey, 2012). Other authors held that reputation is not created through crafted communication but earned based on what the organization does (Adeosun & Ganiyu, 2013; Bergh, Ketchen, Boyd, & Bergh, 2010; Iwu-Egwuonwu, 2011). The perceptions and attitudes of individuals in a stakeholder group toward an organization forms that organization's reputation (Burke, Martin, & Cooper, 2011). ...
... The emotion appeared to solidify participant attitudes about the hospital; thereby making participants adamant about their opinions and attitudes. Emotional appeal is a dimension in the Reputation Quotient (Fombrun, Gardberg, & Sever, 2000) and a variable in studies of consumer-based corporate reputation in banking (Chahal & Kumari, 2014The heavy reliance on experience, either their own or others', in forming the attitudes of the patient focus group participants about the case hospital suggests that the consumer-based reputation of the hospital was based on what the hospital did; thereby supporting the premise that a reputation is earned (Adeosun & Ganiyu, 2013; Bergh, Ketchen, Boyd, & Bergh, 2010; Iwu-Egwuonwu, 2011). In contrast, the role of mass communication described by participants in this study refutes the position that an organizations reputation can be created (Highhouse, Brooks, & Gregarus, 2009; Fisher & Reuber, 2007; Kim, Hong, & Cameron, 2014) and managed (Srivoravilai, Melewar, Liu, & Yannopoulou, 2011) using institutional, impression management, and signaling theories. ...
Corporate reputation has been studied for over two decades from a variety of academic disciplines, constructs, and definitions. The interest in corporate reputation lies in the many potential benefits that an organization can derive from a good corporate reputation. In spite of the all the research, corporate reputation is not yet fully understood due its complexity and much of the research used to develop corporate reputation theory has excluded the healthcare industry. The healthcare industry has been described by authors as unique from other industries. The problem is that hospital executives must be able to manage reputation but it is not known how consumer-based hospital reputation is formed; without such information hospital executives cannot manage reputation that can potentially lead to reduced patient loyalty, lower market share, declining revenues, and hospital closure. This exploratory, qualitative, single case study examined the formation of consumer-based hospital reputation through the lens of attitude theory; one theory of corporate reputation is that reputation can be thought of as an attitude. Focus groups of patients and potential patients of the case hospital were asked to describe the criteria they used to form their attitudes about the case hospital; attitudes that collectively make up the consumer-based reputation of the hospital. The analysis of the data revealed study participants relied primarily on their own experiences, word-of-mouth, and observation of others’ experiences to form their opinions and attitudes about the case hospital. The antecedents found in traditional models of corporate reputation did not reflect the antecedents to consumer-based hospital reputation found in this case study and further research is needed to further explore the phenomena of how consumer-based hospital reputation is formed and develop models for corporate reputation in a healthcare context.
... The common premise among these theoretical perspectives is that the organization can define and create its reputation. In contrast to the idea that an organization can create its reputation is the premise that a reputation is earned, based on what the organization does (Adeosun & Ganiyu, 2013; Bergh, Ketchen, Boyd, & Bergh, 2010; Iwu-Egwuonwu, 2011). This perspective can be seen in Fombrun's (1996) original definition of corporate reputation. ...
... The organization's nature and behavior is how well the organization does what it intends to do (Foreman, Whetten, & Mackey, 2012). Other authors held that reputation is not created through crafted communication but earned based on what the organization does (Adeosun & Ganiyu, 2013; Bergh, Ketchen, Boyd, & Bergh, 2010; Iwu-Egwuonwu, 2011). The perceptions and attitudes of individuals in a stakeholder group toward an organization forms that organization's reputation (Burke, Martin, & Cooper, 2011). ...
... The emotion appeared to solidify participant attitudes about the hospital; thereby making participants adamant about their opinions and attitudes. Emotional appeal is a dimension in the Reputation Quotient (Fombrun, Gardberg, & Sever, 2000) and a variable in studies of consumer-based corporate reputation in banking (Chahal & Kumari, 2014The heavy reliance on experience, either their own or others', in forming the attitudes of the patient focus group participants about the case hospital suggests that the consumer-based reputation of the hospital was based on what the hospital did; thereby supporting the premise that a reputation is earned (Adeosun & Ganiyu, 2013; Bergh, Ketchen, Boyd, & Bergh, 2010; Iwu-Egwuonwu, 2011). In contrast, the role of mass communication described by participants in this study refutes the position that an organizations reputation can be created (Highhouse, Brooks, & Gregarus, 2009; Fisher & Reuber, 2007; Kim, Hong, & Cameron, 2014) and managed (Srivoravilai, Melewar, Liu, & Yannopoulou, 2011) using institutional, impression management, and signaling theories. ...
Corporate reputation has been studied for over two decades from a variety of academic disciplines, constructs, and definitions. The interest in corporate reputation lies in the many potential benefits that an organization can derive from a good corporate reputation. In spite of the all the research, corporate reputation is not yet fully understood due its complexity and much of the research used to develop corporate reputation theory has excluded the healthcare industry. The healthcare industry has been described by authors as unique from other industries. The problem is that hospital executives must be able to manage reputation but it is not known how consumer-based hospital reputation is formed; without such information hospital executives cannot manage reputation that can potentially lead to reduced patient loyalty, lower market share, declining revenues, and hospital closure. This exploratory, qualitative, single case study examined the formation of consumer-based hospital reputation through the lens of attitude theory; one theory of corporate reputation is that reputation can be thought of as an attitude. Focus groups of patients and potential patients of the case hospital were asked to describe the criteria they used to form their attitudes about the case hospital; attitudes that collectively make up the consumer-based reputation of the hospital. The analysis of the data revealed study participants relied primarily on their own experiences, word-of-mouth, and observation of others’ experiences to form their opinions and attitudes about the case hospital. The antecedents found in traditional models of corporate reputation did not reflect the antecedents to consumer-based hospital reputation found in this case study and further research is needed to further explore the phenomena of how consumer-based hospital reputation is formed and develop models for corporate reputation in a healthcare context.
... Reputation positively affects the performance of business (Dowling & Moran, 2012;Fombrun & Shanley, 1990;Iwu-Egwuonwu & Chibuike, 2010;Wartick, 1992), by enhancing competitive advantage (Dowling & Moran, 2012;Iwu-Egwuonwu & Chibuike, 2010;Roberts & Dowling, 2002). Kaul and Desai (2014) argue that having a favourable reputation is the beginning of corporate success; it supports and drives their competitiveness and achievement of goals which typically include, increasing profit through increased sales, service prices, and decreasing operational costs (Argenti & Druckenmiller, 2004). ...
... Reputation positively affects the performance of business (Dowling & Moran, 2012;Fombrun & Shanley, 1990;Iwu-Egwuonwu & Chibuike, 2010;Wartick, 1992), by enhancing competitive advantage (Dowling & Moran, 2012;Iwu-Egwuonwu & Chibuike, 2010;Roberts & Dowling, 2002). Kaul and Desai (2014) argue that having a favourable reputation is the beginning of corporate success; it supports and drives their competitiveness and achievement of goals which typically include, increasing profit through increased sales, service prices, and decreasing operational costs (Argenti & Druckenmiller, 2004). ...
Tourism is a reputation-dependent industry; on the demand side, potential travellers without previous experience of a destination face certain risks when determining their travel options. An accurate perception of the destination’s reputation helps minimise risk of unsatisfactory travel experiences. On the supply side, a favourable tourist destination reputation enhances the destination’s competitive advantage, and helps it to compete for visitors, investments, and skilled human resources. Despite the importance of tourist destination reputation, attempts at developing a definition have been somewhat limited by an over-reliance on theories of corporate reputation. The present study suggests a comprehensive definition of tourist destination reputation based on empirical study, by applying a Delphi research with a group of ten professional and academic tourism experts. Consensus was reached after conducting two-rounds of the Delphi process, resulted in an agreed definition for tourist destination reputation that takes account of professional insights. © 2019
... Corporate reputation of a firm should be considered as an asset and wealth that gives that firm a competitive advantage because the firm will be regarded as reliable, credible, trustworthy and responsible for employees, customers, shareholders and financial markets [18]. Although reputation is an intangible concept, research universally shows that a good reputation demonstrably increases corporate worth and provides sustained competitive advantage [19]. A business can achieve its objectives more easily if it has a good reputation among its stakeholders, especially key stakeholders, such as its largest customers, opinion leaders in the business community, financiers, and suppliers as well as current and potential employees [19]. ...
... Although reputation is an intangible concept, research universally shows that a good reputation demonstrably increases corporate worth and provides sustained competitive advantage [19]. A business can achieve its objectives more easily if it has a good reputation among its stakeholders, especially key stakeholders, such as its largest customers, opinion leaders in the business community, financiers, and suppliers as well as current and potential employees [19]. ...
... The benefit of good corporate reputation can be demonstrated in such a way that the organization is freer to put higher prices on its products and services as customers will be willing to pay such prices. As a consequence, customers will prefer to patronize the products and services of the reputable company even when another company's products are available at comparable quality and price (Chibuike, 2011). Ou and Abratt (2006) indicate that correct pricing helps influence the organization's reputation (e.g. ...
... In effect, researchers have found compelling evidence affirming the theory that reputation positively affects both the sale and the price of products/services. In other words, there is a higher likelihood that highly reputable organizations will not only sell their products faster than the less reputable ones, but will be able to do so at a higher price than their less reputable counterparts (Chibuike, 2011). Babić-Hodović et al. (2011) furthermore conclude that the influence of a bank's corporate reputation on consumer perception of value is positive and significant. ...
Background and Purpose: An increasing number of insurance companies and the intensity of competition in this field require research on customer perceptions of the components of insurance services and insurance company. The objective of this study was to examine the conceptual model and to study the relationships between customer perceptions of the innovation, reputation, adequacy of premium, and adequacy of information about the coverage of insurance services.
Design/Methodology/Approach: The research model was tested with structural equation modelling (SEM) with a sample of 200 Slovenian users of insurance services.
Results: The results indicated that higher perceived innovation of insurance company was associated with higher perceived reputation of insurance company. In addition, higher perceived reputation of insurance company was associated with higher perceived adequacy of information about the coverage and the premium for insurance services. The study also found that higher perceived adequacy of premium was associated with higher perceived adequacy of information about the coverage of insurance services.
Conclusion: The original contribution of this article is also the highlighting of relationship between perceived reputation of insurance company, perceived adequacy of information about the insurance premium and perceived adequacy of information about the coverage of insurance services.
... For ages, the view that corporate reputation positively impacts on firm performance has been documented (Iwu-Egwuonwu, 2011). Strong corporate reputation helps win the war for talents, and fosters employee Retention (Schwaiger, 2004). ...
... There is also a lot of empirical evidence that establish a positive relationship between firm publicperception/reputation and its financial and equity market performance. In contrast, the relationship betweenfirm reputation and the price of its products as well as the value of the firm (Iwu-Egwuonwu, 2011). Corporate reputation can also directly affect a firm's workforce composition. ...
Corporate reputation may also be a critical factor in responding to a crisis. Reputation may be seen to arise as an output of different activities in the professions.Reputation is a set of collectively held beliefs about a company's ability to satisfy the interest of its various stakeholders. Corporate reputation also is: Observers’ collective judgments of a corporation based on assessments of the financial, social, and environmental impacts attributed to the corporation over time. The organization which doing a good job managing their corporate reputations stressed the factors as distinctiveness, focus, consistency, identity, and transparency. Corporate reputation has more benefits such as to raise financial and equity market performance, to affect a firm’s workforce composition, to support the persistence of above-average profits, to increase firm’s performance, and so on. Without a clear and commonly agreed upon definition, however, it is difficult to move forward in this field of study. Corporate reputation can be a key contributor to an organization’s success and it can just as easily be a contributing factor to an organization’s failure.
... CSR activities may act as a reservoir of goodwill, insulating them from the negative impacts of the crisis [38]. Iwu-Egwuonwu and Chibuike [39] review the empirical studies on corporate reputation and argue that cultivating a good reputation is a prerequisite for firms that intend to beat competitors, enhance their market outlook, increase their financial performance, and have a sustainable place in the global economy. A good CSR reputation can increase the value of a company's predicted cash flows, reduce the variability of its cash flows, and increase its net income [7], thus reducing the cost of debt. ...
This study delves into the interplay between the Environmental, Social, and Governance (ESG) ratings and the debt costs incurred by Korean-listed companies, highlighting their pivotal significance in today’s corporate ecosystem. Our primary focus is to explore how the extent of media coverage moderates this relationship, thereby shedding light on the pivotal role that public scrutiny plays in shaping a company’s financial outcomes. Utilizing the Ordinary Least Squares (OLS) regression model, we rigorously control for industry and year effects, as well as firm-specific variations. Additionally, we conduct a series of supplementary analyses and robust tests to further strengthen the credibility of our findings. Our empirical analysis reveals that firms with poor ESG ratings, indicating corporate social irresponsibility, incur higher debt costs in the subsequent period. Notably, this adverse financial impact is significantly alleviated for companies that enjoy higher media coverage. This notable discovery underscores the potential of media scrutiny to reduce the financial burden imposed by inadequate ESG performance. Our results suggest that companies, especially those with limited media attention, should prioritize enhancing their ESG performance to mitigate potential financial implications. Overall, our research contributes to a more nuanced understanding of the intersection between corporate social responsibility, media coverage, and financial performance.
... Some people argue that stakeholder theory can result in managers becoming more selfish because their interests are different, and the decision-making process is difficult, making it difficult to ensure that stakeholder representatives have equal opportunities (Iwu-Egwuonwu, 2012). It is possible that organizations can improve their performance through positive social responsibility relationships (Cheung et al., 2010;Oeyono et al., 2011;Yu & Choi, 2014). ...
Corporate Social Responsibility (CSR) has emerged as an essential element of corporate operations, signifying a company's dedication to tackling environmental, social, and ethical concerns. This study aims to analyze the impact of corporate social responsibility (CSR) on the financial performance of Food and Beverage companies listed on the Indonesia Stock Exchange from 2016 to 2022. The Global Reporting Initiative (GRI) index is used as a measurement tool for CSR. The independent variable in this study is CSR, while the dependent variable is either Return on Assets (ROA) or Return on Equity (ROE). The research focuses on companies in the food and beverage subsector listed on the IDX during the specified period. The sample for this study is selected using the purposive method, which involves predetermined standards. Secondary data from the Indonesia Stock Exchange (IDX) for the period 2016 to 2022 is utilized for analysis. The findings of this study indicate that CSR has an insignificant positive impact on ROA, but it does have a significant positive impact on ROE.
... Reputation is defined as the objective depiction of various constituencies' perceptions of an organization, developed through time and based on identity programs, performance, and how constituencies have perceived an organization's actions [78]. The reputation of the seller improves trust in sellers, leading to an enhancement of satisfaction, ultimately resulting in a greater formation of repurchase intention [79]. ...
Recently, a number of companies have started to implement commerce platforms that maximize the profits of offline stores by using online information. This kind of commerce is called online for offline (O4O). This research proposes a research framework to clarify the precursors of recommendation and loyalty in the context of O4O-commerce platforms. Data was gathered from consumers who had experienced O4O. This study conducted partial least squares structural equation modeling to test hypothesized paths. The findings revealed the fact that relative advantages are affected by channel accessibility, perceived multichannel quality, and customization. The analysis results validated the fact that relative advantages do not affect recommendation intention and loyalty. Price fairness impacts both recommendation intention and loyalty. Reputation is significantly related to loyalty. This study is of academic significance in that it approaches O4O as distinct from traditional O2O, by introducing contextual variables. In addition, this paper derives managerial implications for omnichannel companies that operate mainly in offline stores.
... Failure to satisfy the needs of different stakeholders can cause support withdrawals, which can harm the organization's brand image and economic survival. This means that numerous stakeholders contribute to the formation of corporate reputation (Fombrun et al., 2015), which in turn results in economic advantages (Iwu-Egwuonwu, 2010). According to Bakar et al. (2015), when firms participate in information security programs ISO 27001 and include them in their annual reports, their corporate reputation improves. ...
The immense organizational emphasis on information technology (IT), combined with the growing impact of information security issues, has inflated information security to the top list of management’s priorities. The ISO 27001 standard defines the requirements for an effective information security management system (ISMS). However, the implementation of ISMS not only maximizes firm performance directly, but it can also have a significant impact in different contexts. We investigated whether ISMS implementation can benefit organizations financially by contributing to corporate reputation and branding in this study. With samples from 171 Pakistani firms, we examined firm performance after ISMS ISO 27001 certification. Compatible with our expectations, we discovered strong evidence that ISMS implementation benefited certified firms in terms of high corporate reputation, brand and branding, and financial performance.
Keywords
Information Security Management System (ISMS), ISO 27001, Corporate Reputation, Brand and Branding, Firm Performance
... Semakin baik kinerja perusahaan maka semakin tinggi pula kredibilitas dan reputasi perusahaan tersebut (Fanasch, 2019) (Ratnawati, Freddy, & Hardi, 2018). Reputasi perusahaan bahkan dianggap sebagai salah satu aset strategis dan abadi yang paling penting yang dapat dimiliki perusahaan (Iwu-Egwuonwu & Chibuike, 2010). Perusahaan dengan kinerja yang baik akan semakin dipercaya oleh banyak pihak. ...
Pajak adalah iuran wajib yang terutang kepada negara oleh orang pribadi atau badan sebagai wajib pajak, tanpa timbal balik secara langsung, bersifat wajib dan dipungut menurut undang-undang. Penelitian ini bertujuan untuk menganalisis pengaruh kinerja produksi terhadap penghindaran pajak. Kinerja produksi menggunakan proksi Sales Income Growth dan Net Income Growth. Variabel kontrol yang digunakan dalam penelitian adalah Return on Assets ukuran perusahaan. Sedangkan penghindaran pajak menggunakan proksi GAAP ETR. Populasi yang digunakan adalah perusahaan sektor pertambangan untuk periode 2017-2020. Metode pengumpulan sampel pada penelitian ini menggunakan purposive sampling. Analisis yang digunakan adalah metode regresi linier berganda data panel. Berdasarkan hasil pengujian dapat disimpulkan bahwa kinerja produksi secara bersama-sama berpengaruh signifikan terhadap penghindaran pajak. Secara parsial Net Income Growth berpengaruh terhadap penghindaran pajak. Sedangkan Sales Income Growth, Return on Assets dan ukuran perusahaan tidak berpengaruh terhadap penghindaran pajak.
... For centuries, the belief that corporate reputation positively influences the efficiency of an enterprise was documented (Iwu-Egwuonwu, 2011). Strong corporate reputation helps win the "war" for talent and contributes to keeping employees (Schwaiger, 2004). ...
Purpose – to identify the theoretical aspects of enterprise reputation.
Design/Method/Research approach. Authors applied a structural-functional method in the course of systemic investigation and substantiation of the methodological toolset of enterprise reputation assessment and the method of logical generalization when analyzing the evolution of scientific views on the nature of the notion "reputation". The information base of this research is the monographic works and scientific publications on relevant subjects.
Findings. Authors have substantiated the theoretical aspects of enterprise reputation, according to which the reputation of an enterprise is formed under the influence of both intangible and tangible factors. Approaches to defining reputation of an enterprise were systemized, with their new classification proposed, which distinguishes the immanent-functional, value, emotional (image), monitoring, market, and integrated approaches. Current methodological toolset of enterprise reputation assessment has been analyzed, and the scope of its application has been determined, as well as the main advantages and disadvantages. An algorithm for evaluating an enterprise reputation has been developed, in accordance with the proposed theoretical approach, a market share, and the totality of consumers values.
Practical implications. Results of this study could form the basis for forming a policy of an enterprise concerning the activation of reputation management processes with the purpose of strategic development of the enterprise and in order to faster meet the expectations of its stakeholders, which would provide a synergistic effect.
Originality/Value.Authors proposed to define the essence of the notion of an enterprise "reputation", which, in contrast to existing interpretations, focuses on the cognitive-contemplative characteristic of an enterprise, which is formed based on the results of comparing the totality of tangible, intangible, personal, and social values, inherent to its external and internal stakeholders; changing them in time and space indirectly affects positioning of the enterprise in the market as a result of change in the way its stakeholders perceive it.
Research limitations/Future research. Results of this study should be laid at the basis of the implementation of the proposed algorithm for assessing reputation in the process of enterprise management.
Paper type ‒ theoretical.
... Because of increasing ethical problems in business, organizations are seeking increasingly to adopt measures that preserve and develop their reputation, for the reason that corporate reputation is seen as an intangible resource that creates a competitive advantage for the enterprise and high performance (Iwu-Egwuonwu, 2011). Many studies have emphasized the importance of ethical and social responsibility approaches in relations between business and consumers (B to C) or the relationship between businesses (B to B). ...
Ethics occupies predominant place in the management of the company, view it role in the development of ethical behavior of employees. The establishment of an ethical climate within the company is considered an intangible resource that has positive effects on growth of performance. In this framework, and from an analysis of existing literature, we will try to determine the impact of an ethical approach oriented employee on corporate performance based on the tools of relationship marketing. The main results of this work is that relationship marketing acts internally in the enterprise through internal marketing, and ethics indirectly affects corporate performance across four dimensions of relationship marketing (internal marketing): communication, organizational trust, job satisfaction and organizational commitment. These constitute mediating variables between ethics and performance. Our goal is to establish a conceptual model representing the different relationships.
... A positive corporate reputation has been found to mitigate the negative impact of a crisis (Vanhamme and Grobben, 2009), be a fundamental source of competitive advantage (Dierickx and Cool, 1989; Flatt and Kowalczyk, 2011), attract capital and close contracts (Soppe et al., 2011), and influences consumer behaviour (Dowling, 2001). Thus, corporate reputation is a valuable resource (Iwu-Egwuonwu, 2011) and the significance to manage it, indicates the need to understand its dimensions. A review of the literature shows that definitions of corporate reputation stem from the seminal work of Fombrun (1996) who identified three foundational elements: 1 reputation is based on perceptions; 2 it is the aggregate perception of all stakeholders; and 3 it is comparative. ...
Purpose
In the supply chain context, professionals manage various risks that have the potential to disrupt supplies. Surprisingly, one kind of risk is often overlooked: reputational risk. It is critical to recognise the risk potential that impacts on the reputation of the organisation. Furthermore, managers require an appropriate tool set to control it. The present paper aims to have a twin focus: first, it will lay out the basic premises behind corporate reputation, reputational risk, and corporate social responsibility (CSR). Second, the practical implications will be addressed that lead to a substantial teaching component.
Design/methodology/approach
The present paper is based on two research stages. Initially, the authors adopted the “reflective practitioner” philosophy that aimed at discovering the common beliefs in practice that explain working processes and management thought. In particular, they explored the foundation of CSR, reputation and risk management with specialists in dedicated workshops (electronics, energy, life sciences, telecommunications and defence industries, located at different stages of the supply chain). To gain more insight, the authors subsequently conducted in‐depth interviews in these topic areas with key informants. The combination allowed them methodological triangulation.
Findings
Reputation can be created and controlled as soon as its nature is fully understood (Reputational Owner). Interestingly, it is a transceiving business phenomenon that crosses organizational boundaries. Spillover effects can thus be observed at all stages of the supply chain by mere business association (Reputational Borrower). Reputation can range from positive to negative extremes and needs to be managed. The results of the authors' exploratory work are presented as quotations to provide the substance of the current and relevant subject.
Research limitations/implications
The present work is exploratory in nature. Quantitative research methods are now required to validate and substantiate the findings.
Practical implications
CSR is a contemporary foundation to mitigate reputational risk throughout the supply chain. The authors outline the reputational risk factors in this context and the ways of managing those.
Social implications
In the market place, reputation is a reflection of the supply chain offering (products, services), communication (promotion, PR), and action (behaviour and views expressed). Consumers adopt supply chain reputation as a yardstick when making purchase decisions. It is therefore critical to manage reputational risk in the supply chain and this paper outlines the cause and effect relationships that this topic entails in modern society.
Originality/value
This paper discusses the importance of reputational risk in the supply chain. It also explains the ways it can be mitigated via CSR. This is the management baseline that adds tremendous value for theory builders and present and future managers. Having the education of Master students in mind, the authors outline three specific teaching units that bring the conceptual underpinnings alive in an interactive learning environment.
Plain language summary
Understanding What Drives People to Recommend Online Platforms: Insights from a Study on Consumer Practices
Have you ever wondered why some people are eager to recommend online contests and platforms to others? Our study dives into this question, focusing on online consumer practices (OCPs) - basically, how people engage with online contests and platforms. We explored several factors that might influence someone’s decision to recommend these platforms to friends or colleagues. Firstly, we looked at “outcome expectations”– the belief that participating in an online contest can lead to positive outcomes, like learning something new or improving skills. Then, we considered “career benefits”– the idea that winning a contest could help someone’s job prospects. We also examined how the reputation of the company hosting the contest might affect recommendations, alongside “task identity” (how clear and specific the contest details are) and the duration of the contest (how long it runs). Our findings revealed some interesting points. For example, people are more likely to recommend contests when they believe participating could yield personal or professional gains. However, not all factors influenced recommendations equally. The reputation of the company hosting the contest mattered more to people than how well-defined the contest tasks were or how long the contest lasted. These insights are crucial for anyone organizing online contests or platforms, as they highlight the importance of framing these opportunities in a way that resonates with potential participants. By understanding what drives recommendations, organizers can better design and promote their contests, making them more appealing to a broader audience. In short, our study sheds light on the complex motivations behind recommending online platforms and contests, offering valuable guidelines for enhancing their appeal and reach.
المستخلص الغرض/ يهدف البحث لتحديد طبيعة العلاقة بين سمعة المنظمة والأداء الاستراتيجي في مطاعم الدرجة الأولى والممتازة في محافظة النجف.المنهجية/ التصميم: قام الباحثان بتوزيع (82) استبانة على الافراد المؤثرين في القرار والذين يمثلون مجتمع عينة البحث في مطاعم الدرجة الأولى والممتازة في محافظة النجف، اذ تم تحليلها باستخدام البرنامج الاحصائي المتقدم SmartPLS v.3 فضلا عن برنامج. .SPSS v.22أهمية البحث/ تتمثل أهمية البحث في انه مطبق في أحد اهم القطاعات التجارية في العراق بشكل عام ومحافظة النجف بشكل خاص، الا وهو قطاع المطاعم، ومعالجة مشكلة واقعية تمثلت في بحث المنظمات مجتمع البحث عن موارد فريدة تمكنها من مواجهة المنافسة الشديدة ضمن هذا القطاع.النتائج العملية/ توصل البحث الى مجموعة من النتائج العملية منها ان هنالك علاقة تأثير معنوية بين ابعاد سمعة المنظمة والأداء الاستراتيجي.الاصالة/ القيمة: جاء البحث ليسُد فجوة معرفية تمثلت بعدم وجود بحث عربي على حد علم الباحثان تناول العلاقة والتأثير بين متغيرات البحث في انموذج فرضي واحد، واهمية هذه العلاقة في تحقيق التميز والتفوق للمطاعم عينة البحث.المصطلحات الرئيسة: سمعة المنظمة، الأداء الاستراتيجي، مطاعم الدرجة الأولى والممتازة.AbstractThe Purpose / of this research to determine the nature of the relationship between organization reputation and Strategic Performance in the first premium-class restaurants in the province of Najaf.Methodology / Design: The researchers distributed (82) to identify the individuals' influential in the decision in the first premium-class restaurants in the province of Najaf, as it has been analyzed using statistical program Advanced SmartPLS v.3 as well as a program. .SPSS V.22.The importance of research/ The importance of research in that it is applied in one of the most important business sectors in Iraq in general and in the province of Najaf, in particular, that of the catering sector, and address the real problem was the search organization community searching for unique resources to cope with the intense competition within the sector.Practical results / research found a set of practical conclusions from them that there is significant effect between dimensions of organization reputation and Prospective of Strategic Performance.Originality / value: this research came to fill the knowledge gap represented the lack of Arabic search to the knowledge of researchers addressed the relationship and influence between research variables in the specimen supposedly single, and the importance of this relationship to achieve excellence for restaurants study sample.Keywords,organization Reputation, Strategic Performance, the first premium-class restaurants.
الغرض من هذا البحث هو دراسة تأثير وجود داعش في العراق على سمعة الشركات المساهمة في هذا البلد. ولهذا الغرض تم قياس سمعة الشركات المقبولة في سوق العراق للأوراق المالية من خلال نموذج الانحدار واستخدام المتغير الافتراضي فيما يتعلق بوجود تنظيم داعش في العراق تم التحقيق في الموضوع. أما طريقة إجراء هذا البحث فهي الوصفية-الارتباطية وتضم العينة المختارة 35 شركة تم إدراجها في سوق الأوراق المالية العراقية خلال الأعوام 2013 إلى 2018. تم اختبار فرضيات البحث باستخدام نموذج الانحدار اللوجستي المتعدد بالاعتماد على بيانات اللوحة. وتشير نتائج هذا البحث إلى وجود علاقة كبيرة بين وجود داعش في العراق وسمعة الشركات المقبولة في بورصة هذا البلد، مما يعني أن سمعة الشركات في البورصة العراقية انخفضت مع وجود داعش في العراق. الكلمات المفتاحية: سمعة الشركة، داعش، الاقتصاد العراقي، الانحدار اللوجستي
Nghiên cứu này xem xét ảnh hưởng của yếu tố trách nhiệm xã hội đối với hiệu quả hoạt động của các doanh nghiệp vừa và nhỏ (SMEs) tại Việt Nam. Bên cạnh đó, vai trò trung gian của hình ảnh doanh nghiệp (HA), danh tiếng doanh nghiệp (DT) và lòng trung thành với thương hiệu (TT) được nhấn mạnh trong mối quan hệ này. Mô hình sử dụng lý thuyết quan điểm dựa trên nguồn lực (RBV), lý thuyết các bên liên quan và lý thuyết bản sắc xã hội nhằm cung cấp sự hiểu biết toàn diện về các hiện tượng đang được nghiên cứu. Dữ liệu nghiên cứu được thu thập từ 386 giám đốc điều hành, quản lý cấp trung từ doanh nghiệp vừa và nhỏ (SME). Từ kết quả nghiên cứu, một số hàm ý được đề xuất có thể giúp các nhà quản lý doanh nghiệp có cái nhìn rõ nét về ảnh hưởng của trách nhiệm xã hội đến hiệu suất hoạt động của các doanh nghiệp thông qua vai trò trung gian của hình ảnh công ty, danh tiếng công ty và lòng trung thành với thương hiệu.
This chapter aims to provide an overview and insight into the concepts, aspects, and issues of corporate governance in general and the internal mechanisms of the board of directors and ownership structure in particular. It begins by discussing the concept throughout the historical development of the theory of the firm and postulates different approaches to corporate governance. It is then followed by how the concept of corporate governance has emerged and how governance mechanisms have been used as ways to solve agency problems.
Purpose: The purpose of this research paper is to explore what factors that affect customer purchase decisions in the online environment, particularly after the COVID-19 pandemic in the case of Vietnamese customers. Research Design, Data and Methodology: To clarify which factor has the most significant impacts on online purchasing decision-making process, this study proposed a research model including factors such as customer trust, proposensity to trust, system assurance, the quality of website design, attitude, and customer satisfaction. This study collected the data via online survey. Data analysis was conducted by AMOS 25.0 using the Structural Equation Modeling (SEM) method. Result: The results of this study shows that the purchase decisions were positively affected by customers' attitude, satisfaction, trust, and the quality of websites design. Additionally, factors such as perceived size and reputation and system assurance, have impacts on buyers' trust, while the propensity to trust has no significant impact. Conclusion: This study provides managerial implications. The results provide which factors should be improved to foster trust, attitude, customer satisfaction, and purchase decision in the online environment. The results also provide managerial implication on marketing strategies how to enhance better relationships with customers and to consider environmental issues in the era of post COVID-19.
This paper aims to assess the impact of ISIS’s presence in Iraq on the reputation of listed firms on the Iraq Stock Exchange. This paper’s method is descriptive–correlational, and the selected sample includes 35 listed firms on the Iraq Stock Exchange during 2014–2019. This study measures the reputation of listed firms on the Iraq Stock Exchange. The presence of ISIS in Iraq is analyzed using a regression model and a dummy variable. Research hypotheses were tested using a multivariate regression model based on panel data. The obtained results show a significant relationship between the presence of ISIS in Iraq and the reputation of listed firms on the Iraq Stock Exchange, which means the presence of ISIS in Iraq has declined listed firms’ reputation on the Iraq Stock Exchange. Since the present study is a pioneer in examining this issue in an emerging economy, especially ISIS’s existence, the current study results may give academia and practitioners a profound insight.
Corporate reputation is becoming increasingly important for firms; social media platforms such as Twitter are used to convey their message. In this paper, corporate reputation will be assessed from a sustainability perspective. Using sentiment analysis, the top 100 brands of the Netherlands were scraped and analyzed. The companies were registered in the sustainable industry classification system (SICS) to perform the analysis on an industry level. A semantic search tool called Open Semantic Desktop Search was used to filter through the data to find keywords related to sustainability and corporate reputation. Findings show that companies that tweet more often about corporate reputation and sustainability receive overall a more positive sentiment from the public.
This study explores the relationship between social media usage, the use of public libraries, and reading habits. The data were collected using a questionnaire that evaluates the profile of public library users, the use of social media platforms, and reading habits. A total of 222 valid answers were obtained. The results show that only 33.5% of the respondents are regular users of public libraries. The findings suggest that using social media negatively influences being a public library user who spends more time in social media at the expense of reading and using libraries. Since the number of users is a performance indicator for libraries, increased social media use could threaten their survival. However, social media can be an opportunity to reach current users to stimulate non-users to visit and change reading habits.
In contemporary societies, forms of communication have become, in many ways, predominantly online. The rise of social media has reshaped the culture of communication and created new virtual environments offering multiple opportunities for individuals to create profiles on different platforms, to communicate both personally and professionally. Although there is research on the phenomenon of Branding in social media, it is observed that the people-related perspective presents gaps in conceptual alignment and scientific depth and therefore holds immense room for progression. Thus, the objective of this article is, through a theoretical revision, to investigate and discuss the influence of communication practices and dynamics in the process of Personal Brand Management in social media, in order to contribute to overcome some of the gaps in scientific knowledge and enable the use of this knowledge by society in general.
The various existing social media platforms aim at interaction and connectivity between users within online communities through the production and sharing of content. Like sports, social media allows users to obtain experiences that often stirs emotion. This empirical study combines football with social media through a multiple linear regression analysis involving the social networks, Facebook, Instagram, and Twitter, of the three biggest Portuguese clubs—SL Benfica, FC Porto, and Sporting CP. This research reviews the literature of sports fanaticism, the structure, and content of posts, combined with a bibliometric analysis of social media, which allows the understanding of this vast theme in four components: social media engagement, user-generated content, online communities, and content marketing. Through the testing of the hypotheses written for this research, assertive conclusions were obtained about the performance of social media posts in the sports field, such as the relevance of visual posts, compared to textual posts; the effectiveness of posts that refer to the nostalgia of the supporter; and the determination of the social network most suitable for the accompaniment of a live football match.KeywordsSocial mediaSports marketingMultiple linear regression
The purpose of this study is to examine the effect of carbon emissions disclosure and CSR themes disclosure on firm value as measured by price to book value ratio (PBV). Furthermore, this study also investigates the magnitude of a firm reputation as a moderating variable of relationship between these factors. This study uses a quantitative descriptive approach to provide evidence of the effect of carbon disclosure and CSR themes on firm value. The findings show carbon emission disclosure affects firm value while CSR themes disclosure does not. Testing with the moderating variable of firm reputation produces a sig value greater than 0.05. This indicates that firm reputation is not a moderating variable for the relationship between CSR themes disclosure and carbon emissions disclosure on firm value.
Purpose- The purpose of this study is to examine the degree to which intangible assets affect financial performance and policy of the technological sector.Design/methodology/approach- Structural equation modeling analysis was used to ascertain the relationship among intangible assets, firm performance, firm policy, and firm value in the year 2015 to 2018 of 80 companies according to the market capitalization of their respective countries in the technology sector globally. The measures used in this study profitability efficiency, capital structure, dividend policy and market value that is calculated through the proxies ROA, ROE, ROIC, ATO, Net Profit Margin, debt to equity ratio, dividend payout ratio, price-earnings ratio, price to sales and price to book value.Finding- The results from Multi group Analysis (MGA) revealed that there are differences (p < .05) in the significance of the impact of Assets on the criterion variable between a few countries for instance Asset’s impact on ROIC is significantly different between Russia & China and USA.Practical implications- Owners and managers of technological sector global companies must recognize the importance of both the physical capital and the intangible resources to the best interest of the companiesOriginality/value– This is the first paper to examine the impact of intangible assets on firm performance, policies and value through cross country analysis in the technological sector.
Abstract :
The main aim of this research is to determine the impact of Leadership Empowerment in organizational reputation at the level of universities and civil colleges working in Governorate of the holy Karbala , The research started with a major problem that included several questions about the nature of the influential relations between the two variables of the field , The research was based scale (Arnold et al, 2000) To measure Leadership Empowerment which consists of five sub - dimensions are (Lead by Example, Coaching, Participative Decision Making , Showing Concern / Interacting With The Team , Informing) , A scale has been adopted (Sala , 2011) To measure Organizational Reputation which consists of four sub - dimensions (Quality , Appeal , Performance , Responsibility) . The questionnaire was used as a key tool in gathering information and data for research , The research sample consisted of a group of faculty members in universities and colleges The research sample And their number (236) teachers. For the purpose of data analysis and statistical processing Was used Confirmatory Factor Analysis (Structural Equation Modeling), And an appropriate set of measures descriptive statistics, rank correlation coefficient (Spearman's rho) , and multiple regression analysis through statistical software (SPSS V.20 ; Amos V.23) .The research found several conclusions the most important ones that Leadership Empowerment have a significantly impact on organizational reputation, The results show clear progress for the dimension of Participative Decision Making , then Informing , and then Showing Concern / Interacting With The Team , And then beyond Lead by Example , And finally Coaching in terms of the impact in organizational reputation . The research came out with a set of recommendations, most importantly Should the administrations of universities and civil colleges of the research sample change their leadership style in dealing with faculty members From of the leadership style Guideline to an empowering leadership style, to achieving superiority and excellence and distinguished organizational reputation in the environment of higher education.
Abstract :
The main aim of this research is to determine the impact of cognitive abilities in organizational reputation at the level of universities and civil colleges working in Governorate of the holy Karbala , The research started with a major problem that included several questions about the nature of the influential relations between the two variables of the field , The research was based scale (Hussein , 2007) To measure cognitive abilities Which included five sub - dimensions are (Structured Thinking , Intelligence , Intuition , Creativity , Renewal and Development), A scale has been adopted (Sala , 2011) To measure Organizational Reputation which consists of four sub - dimensions (Quality , Appeal , Performance , Responsibility) . The questionnaire was used as a key tool in gathering information and data for research , The research sample consisted of a group of faculty members in universities and colleges The research sample And their number (236) teachers. For the purpose of data analysis and statistical processing Was used Confirmatory Factor Analysis (Structural Equation Modeling), And an appropriate set of measures descriptive statistics, rank correlation coefficient (Spearman's rho) , and multiple regression analysis through statistical software (SPSS V.20 ; Amos V.23) . The research found several conclusions the most important ones that Cognitive abilities have a significantly impact on organizational reputation, The results show clear progress for the dimension of Renewal and Development , then creativity, and then Structured Thinking , And then beyond Intelligence , And finally intuition in terms of the impact in organizational reputation . The research came out with a set of recommendations, most importantly Should the administrations of universities and civil colleges of the research sample to Attracting faculty members with advanced scientific degrees characterized by the high uniqueness of knowledge and skills , to achieving superiority and excellence and distinguished organizational reputation in the environment of higher education.
The banks have, since the 2008 global financial crisis, been increasingly concerned about how they are perceived, which resulted in corporate reputation emerging as a key feature of their strategic management processes, and reputation management becoming even more pivotal in managing stakeholder perceptions. From a study conducted among four leading (top four) banks in South Africa, using media data to understand how media content contributes to perceiving corporate reputation, it became apparent that the following reputa tion pillars impact the corporate reputa tion of the banks: vision and leadership, emotional appea l, workplace, s ocial responsibility, financial performance and products and service. Practitioners from the strategic communications and public relation divisions stand to benefit from the insights that may be derived from this study. Strategic managers can better shape their organization's reputation if they understand how reputation is shaped in the public sphere.
This paper provides investigation on the effects of board size and intensity of board activity on the financial performance of small and medium scale enterprises. It further examines the mediating effects of access to capital and firms' reputation on these relationships. This cross sectional study considered primary data from 423 small and medium sized enterprises (SMEs) within the Accra Metropolis of Ghana using structured questionnaires. Standard regression and Baron and Kenny's (1986) pattern of mediation analysis were employed to analyze the data. The results of the study revealed that board size had a positive relationship with financial performance while intensity of board activity did not. In addition, access to capital and firm reputation mediated the nexus between board size and financial performance. Since the relationship between intensity of board activity and financial performance was insignificant, access to capital and firm reputation did not mediate this relationship. It is recommended that SMEs should expand their board sizes and reduce the number of board meetings. Finally, the Government should provide guarantees to facilitate SMEs' access to financing from traditional banks. This would lead to the creation of more jobs and overall national development.
The inconsistent findings of the study on the relationship between corporate social responsibility (CSR) and firm performance (FP) lead to the argument about the accuracy of scientific evidence and methodologies of such study. Based on the stakeholder theory, this study aims to explore the mechanism of CSR affecting FP through employees’ job satisfaction. Data of 309 respondents are collected from small and medium size enterprises (SMEs) in Hebei China. The results of data analysis using the partial least squares structural equation modeling (PLS-SEM) approach with SmartPLS 2.0 software showed both internal and external CSR affecting FP indirectly through employees’ job satisfaction. The results highlighted the importance of employees’ job satisfaction to the performance in the SMEs and the important function of CSR on satisfying the needs of employees. In the modern society that advocates a “people centered” management philosophy, the findings deserve referred to by managers of SMEs. The importance of CSR and employees’ job satisfaction in the development of SMEs cannot be neglected.
The objective of this study is to determine the effects of corporate reputation on employees' job satisfaction and firm's financial performance. A questionnaire survey using middle-level managers of randomly selected small and medium sized enterprises in Hebei, China was conducted in 2013. The partial least squares structural equation modeling approach was used to analyze the data of 309 samples. The results do not support the positive relationship between corporate reputation and financial performance. However, the positive relationship between corporate reputation and job satisfaction is supported. In addition, the results also provide evidence of the indirect effect of corporate reputation on financial performance via job satisfaction. Therefore, we draw the conclusion that job satisfaction plays an important role in the relationship between corporate reputation and financial performance of small and medium sized enterprises in Hebei, China.
This study, conducted by the Boston College Center for Corporate Citizenship in the Carroll School of Management, is the sixth biennial examination of the attitudes and commitments of business executives toward corporate citizenship.
In the decade plus that the Center has conducted this survey, corporate citizenship has come a long way.
While the first study in 2003 found that these investments were considered discretionary by the bulk of
executive respondents, the majority now report that corporate citizenship contributes to achieving key goals.
Since the study was first administered in 2003, corporate citizenship has gone from being the purview
of a handful of ideologically-driven business people to a practice that is now considered a non-negotiable part of business strategy. The role of corporate citizenship is only expected to increase going forward.
The very first State of Corporate Citizenship survey found that 46% of respondents perceived “a lack of
resources” to be the greatest obstacle to corporate citizenship and only 30% had plans to increase
investment going forward. In 2012, companies began to prioritize corporate citizenship as they hadn't before,
and—for the first time—the majority of executive respondents anticipated that corporate citizenship
resources would be sustained or increased over a three-year period. Our current study finds that this
trend continues, and predicts that resources for every corporate citizenship dimension will increase in the
near future.
The paper analyses the importance of intangible assets and corporate social responsibility to a modern enterprise. Referencing to the literature, the article provides the answer to the questions of the existence of the coherence between intangible assets and corporate social responsibility and the existence of positive relationship between intangible assets, corporate social performance and corporate financial performance. The formality and sophistication of the process used to increase corporate social performance depends on the size and sophistication of the company, as well as the nature and complexity of its activities. The principles focused in the paper have broad applicability to all companies. In particular, good management intangible assets and social responsible activities are crucial elements of high corporate performance indicators at a company of any size or scope of operations.
The role of organizational reputation (OR) was studied as a source of sustainable competitive advantage (SCA) and superior performance, theoretically and empirically, among local authorities in Israel. Using the LISREL VIII program, we proposed a mediation model that argued for a relationship between OR and financial performance, mediated by three tests for SCA: OR-value, OR-rareness and OR-inimitability. The effects of demographic and environmental variables on financial performance were also examined. Strong support was found for the resource-based view (RBV), maintaining that to achieve superior performance, organizations need to acquire SCA, which is dependent upon the core resources it possesses.
Brand associations affect image and one source of brand association is a company’s reputation. While the relationship between a positive corporate reputation and operational performance is intuitively appealing, there has been relatively little empirical research. This study, using a comprehensive approach, seeks to empirically test the relationship and thereby determine whether firms with a positive brand image, that is those with a positive reputation, experience an economic benefit. Findings are that these firms are associated with a significant market value premium, superior financial performance, and lower cost of capital. Given these findings, marketing managers would do well to strive to build and maintain a positive reputation.
The authors of the article deal with mutual relations of corporate governance and corporate reputation. The aim of this paper is to show that corporate governance design is in the function of better corporate reputation and to test the perceived relation between corporate governance and corporate reputation. The research expect to show: the necessity for integration of corporate strategy into business strategy (this issue will be even more present in the future) and to prove the opinion of consumers and corporations who claim that corporate governance is a necessity for corporate reputation development.
This paper evaluates the contribution of a stakeholder perspective to the definition of the corporate reputation construct and to the development of measurement items. The literature identifies performance, identity, image, brand, management and ethical leadership as core components. The study provides a fit between these components and what stakeholders consider the most important components of corporate reputation. It suggests the three main concepts of the corporate reputation measurement literature: social expectations, corporate personality traits and trust need to be expanded to include legal-rational, functional, evaluative, normative and perceptual measures. The paper contributes to a growing body of corporate reputation literature that supports a stronger stakeholder focus. Purpose of the Research The purpose of this paper is to take what we have learned from analysis of the academic literature on corporate reputation and to provide clarification of some of the issues relating to the corporate reputation concept and to construct a definition from a stakeholder perspective. We will consider what implications this clarification may have for construct measurement.
The impact of a firm's public perception on corporate and investment management is a recurring topic in finance. Numerous articles have been presented on the theoretical basis for a relationship between a firm's public image and its financial performance as well as on empirical evidence of a relationship between a firm's public perception and a firm's financial and equity market performance. In this paper, we investigate the relationship between a firm's past as well as future equity market performance and its published corporate reputation rankings. As in previous studies, our results show that "highly ranked firms in reputation" outperform, on a total equity return basis, "lowly ranked firms in reputation". In addition, as for other studies, the results in this analysis indicate that larger firms generally have higher corporate reputation rankings than smaller firms. Previous empirical results that large firms' have had both higher reputation rankings and return performance have led some researchers to posit both the benefit of firm size on firm reputation and firm reputation on firm performance. In this study, we show that the aforementioned result (e.g., firm size impacts corporate reputation and corporate reputation affects firm performance) is due primarily to the manner of corporate reputation survey collection and risk-return analysis. The results in this study show: (1) little relationship between high corporate reputation rankings and a firm's future risk-adjusted equity performance, and (2) changes in a firm's reputation ranking are related to changes in its equity market performance during the reputation survey period and thus not solely to firm size. Therefore, unlike previous studies, this research implies that it is primarily a firm's equity market performance in the pre-survey and survey period that affects published rankings of a firm's reputation qualities and that the publishing of these rankings has no impact on a firm's future risk-adjusted returns. Lastly we offer evidence as to why large firms may dominate small firms in the published reputation rankings. Our results show that, for the time period of analysis, large firms outperformed small firms in the second and third quarters of the year and small firms outperform large firms in the first quarter of the year. As a result, respondents generally witness higher returns for large firms relative to small firms during the survey period (July-September). Consequently, if a firm's equity performance affects respondents' perception of a firm's quality, large firms will dominate small firms in reported rankings of the following year. Given no new information over a following year, respondents may use last year rankings as a "naive" basis for next year rankings. Therefore, high reputation rankings may be dominated by large firms. However, empirical results also indicate that firm equity performance in the survey period also impacts rankings; that is, the fact that large (small) firms which perform poorly (well) decline (rise) in its ranking, also indicative of 'non-naive' respondents who use equity market performance as reflective of reputation ability for ranking. Thus firm size is not a sole determinant of reputation ranking. Moreover, the lack of relationship between firms' reputation rankings and risk-adjusted equity performance after the publication date is also indicative of the lack of a market reaction to reputation rankings or that the reputation ranking does not contain any new information with respect to present or past market price changes.
The paper examines the role of reputation to explain the relative market value compared to the accounting value for a multinational firm. The results are consistent with internalization theory in that greater multinationality corresponds to a higher valuation of the firm if corporate reputation id high. However, greater multinationality alone does not correlate positively to a significantly greater value which differs from the tenets of imperfect capital markets theory but correlates negatively to a significantly greater value, which confirms the views of the managerial objectives theory.
Different theoretical approaches highlight the growing relevance of corporate reputation as strategic factor. Among these
approaches the arguments of the Resource-Based View are special worthwhile (Grant, 1991, California Management Review 33(3), 114–135; Barney, 1999, Sloan Management Review Spring, 137–145). Nevertheless, this topic poses several methodological problems (Barney etal., 2001), as the unavailability
to identify and measure this organizational factor, that is “socially complex” and intangible in its nature. In this work,
using the findings of our empirical research on Spanish biotechnology firms, we carry out an identification and measurement
of corporate reputation, highlighting its two key components: “business reputation” and “social reputation”.
A wide variety of scientific and semi-scientific publications state that (amorphous) constructs like corporate reputation may cause sustainable profits. The reason for their interest in reputation is that increasing competition in a globalized economy promotes the identification of drivers of sustainable competitive advantages in the field of intangible assets, too. Therefore, in this paper we describe the state of the art in defining and measuring corporate reputation. Literature review, theory based conceptualization, and expert interviews allow us to develop and test an item battery, resulting in a new measurement approach. Our results show that fitting a structural model is much easier if we do not follow American literature, where reputation is supposed to be one-dimensional, but instead split corporate reputation into two dimensions, a cognitive component we call competence and an affective one we call sympathy. We show that performance aspects drive competence but dampen sympathy, whereas responsibility items have positive impact on sympathy and negative impact on competence.
This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection as well as empirical evidence on the effects of patent rights. Then, the second part considers the international aspects of IPR protection. In summary, this paper draws the following conclusions from the literature. Firstly, different patent policy instruments have different effects on R&D and growth. Secondly, there is empirical evidence supporting a positive relationship between IPR protection and innovation, but the evidence is stronger for developed countries than for developing countries. Thirdly, the optimal level of IPR protection should tradeoff the social benefits of enhanced innovation against the social costs of multiple distortions and income inequality. Finally, in an open economy, achieving the globally optimal level of protection requires an international coordination (rather than the harmonization) of IPR protection.
Reputation and the Corporate Brand (Electronic version) Tuck School of Business at Dartmouth Working Paper No. 03-13
- P Argenti
- B Druckenmiller
Argenti, P., & Druckenmiller, B. (2009). Reputation and the Corporate Brand (Electronic version). Tuck
School of Business at Dartmouth Working Paper No. 03-13. Retrieved September 16, 2009 from
http://papers.ssrn.com/sol3/Papers.cfm?abstract_id=387860
Corporate Reputation: The Definitional Landscape (Electronic Edition)
- M L Barnett
- J M Jermier
- B A Lafferty
Barnett, M.L., Jermier, J.M., & Lafferty, B.A. (2006). Corporate Reputation: The Definitional Landscape
(Electronic Edition). Corporate Reputation Review, Vol. 9. Retrieved October 19, 2009 from
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=868492
The Market Valuation of Firm Reputation (Electronic version) Social Science Research Network (ssrn) Retrieved
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- T A Carnes
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