Corporate Reputation Essay examples

16420 Words Jun 2nd, 2013 66 Pages
Corporate Reputation Review

Volume 12 Number 4

A Systematic Review of the Corporate Reputation Literature: Definition, Measurement, and Theory
Kent Walker Asper School of Business, University of Manitoba, Winnipeg, Manitoba, Canada

ABSTRACT

A systematic review of the corporate reputation literature is conducted. The final sample of 54 articles (and one book) consists of well-cited papers, and papers in journals that have published high quality work in corporate reputation. The sample is then analyzed and the three fundamental problems in the reputation literature are addressed – the need for a comprehensive and well-accepted definition, the difficulty in operationalizing corporate reputation, and the ongoing need for more
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Furthermore, the role of reputation is becoming increasingly important in competitive markets (Abimbola and Vallaster, 2007). A good reputation can lead to numerous strategic benefits such as lowering firm costs (Deephouse, 2000; Fombrun, 1996), enabling firms to charge premium prices (Deephouse, 2000; Fombrun and Shanley, 1990; Fombrun, 1996; Rindova et al., 2005), attracting applicants (Fombrun, 1996; Turban and Greening, 1997), investors (Srivastava et al., 1997) and customers (Fombrun, 1996), increasing profitability (Roberts and Dowling, 2002), and creating competitive barriers (Deephouse, 2000; Fombrun, 1996; Milgrom and Roberts, 1982). A positive reputation increases the likelihood that stakeholders will contract with a given firm (Deephouse, 2000; Rhee and Haunschild, 2006). Economic rents are earned on reputation, and thereby provide continued incentives for firms to maintain

Corporate Reputation Review, Vol. 12, No. 4, pp. 357–387 © 2010 Macmillan Publishers Ltd., 1363-3589

www.palgrave-journals.com/crr/

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A Systematic Review of the Corporate Reputation Literature

and invest in their reputations (Fang, 2005). Not behaving reliably or honestly can have immediate and long-term consequences, as a decrease in positive reputation may affect the future actions of other players toward a firm. As long as the ‘present value of future income exceeds the short-term profit’ of dishonesty, firms will be honest and

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