Disentangling Corporate Reputation: How Much Do Time, Firm and Industry Matter?
نویسندگان
چکیده
Firm reputation is an intangible asset that within a resource-based view can provide a sustainable competitive advantage (Barney, 1991; Carter & Ruefli, 2006; Fombrun, 1996; Roberts & Dowling, 2002). While reputation is built over time, it is highly vulnerable to being tarnished and risks being lost in no time at all (Carter & Ruefli, 2006; Davies, Chun, Vinhas da Silva & Roper, 2003; Hall, 1992 & 1993). One only has to think of the fall and subsequent demise of Arthur Andersen & Co. to see how rapidly a stellar reputation may be reversed. When considering how firm reputation may benefit the firm over time, the various advantages of a good reputation include cost savings as suppliers and employees seek to be associated with the firm, favourable access to capital given the perception of lower risk, as well as being able to charge premium prices to generate superior margins, (Carter & Ruefli, 2006; Fombrun, 1996 & 2001; Fombrun & Shanley, 1990; Roberts & Dowling, 2002). Attributed as key to firm success (Hall, 1992 & 1993), but only durable to the few (Carter & Ruefli, 2006) and rarely over a long time-frame (Wiggins & Ruefli, 2002), understanding the evolution of reputation might be considered as integral to firm strategy.
منابع مشابه
Relationship between Corporate Reputation and Customer Loyalty on Nigerian Food and Beverages Industry: PLS Approach
This study used the partial least squares (PLS) approach to examine the effect of corporate reputation on the customer loyalty of the Food and Beverages Industry in Nigeria. The data for this study were collected from the customers in Kano State Nigeria. Out of 250 distributed questionnaires, 212 usable questionnaires were returned. Before examining the effect of corporate reputation on the cus...
متن کاملDoes Reputation Talk? The Matching of Underwriters and Issuing Firms
The purpose of this paper is to examine the role of reputation in the matching of underwriters and issuing firms in the straight corporate bond market in Japan. While the existing literature already investigates how the issuing firm chooses its underwriter at the time of issue, this paper uses initial and seasoned issues of straight corporate bonds to examine how the matching of underwriters an...
متن کاملImproving Sensing And Seizing Capabilities Of A Firm By Measuring Corporate Reputation Based On Social Media Data
Firms need to continuously sense their business environment for being able to seize emerging opportunities and react against threats, such as loss of reputation. Corporate reputation is of particular importance as a valuable intangible asset. Thus, managing a firm’s corporate reputation as well as monitoring the reputation of its competitors may support sensing and seizing capabilities of a fir...
متن کاملFirm Age and Performance
This paper investigates how firm age affects performance. Consistent with an obsolescence of firm endowments, the existence of organizational rigidities, and the proliferation of seniority rules, performance gets worse with age. Profits fall, margins thin, sales growth drops, and costs rise. Firms do best when they are young, and roughly 15 years after listing (37 years after incorporation), th...
متن کاملTHE IMPACT OF CORPORATE SOCIAL ACTIONS ON CORPORATE REPUTATION Grounded in stakeholder theory and a resource-based view
Grounded in stakeholder theory and a resource-based view of the firm, this conceptual paper explores the impact on corporate reputation of the evolution of corporate social actions over time. Information asymmetries between stakeholders, the stickiness of reputation and other temporal considerations provide the foundation for the proposed conceptual model of the relationship between corporate s...
متن کامل