Identification of the theoretical aspects of enterprise reputation
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.
Allianz Risk Barometer (2016). Top Business Risks 2016, Allianz SE and Allianz http://www.agcs.allianz.com/assets/PDFs/Reports/AllianzRiskBarometer2016.pdf. [in English]. (2018, December, 01).
Allianz Risk Barometer (2018). Top Business Risks 2018, Allianz SE and Allianz https://www.agcs.allianz.com/assets/PDFs/Reports/Allianz_Risk_Barometer_2018_EN.pdf. [in English]. (2018, December, 01).
AON (2017). Global Risk Management Survey 2017, Aon Global Risk Consulting http://www.aon.com/2017-global-risk-management-survey/downloadreports.jsp. [in English]. (2018, December, 01).
Balmer, J. M. T., & Greyser, S. A. (2002). Managing the multiple identities of the corporation. California Management Review, 44 (3), 72-86. https://doi.org/10.2307/41166133.
Barnett, M.L., Jermier, J.M. & Lafferty, B.A. (2006). Corporate reputation: Thedefinitional landscape. Corporate Reputation Review, 9(1), 26–38. https://doi.org/10.1057/palgrave.crr.1550012.
Barron, D. & Rolfe, M. (2011). Measuring Reputation: Corporate Appeal, Political Influence and Regulation, Oxford University. https://doi.org/10.1093/oxfordhb/9780199596706.013.0008.
Baur, D., & Schmitz, H. P. (2011). Corporations and NGOs: when accountability leads to co-optation. Journal of Business Ethics, 106 (1), 9-21. https://doi.org/10.1007/s10551-011-1057-9.
Beheshtifar, M. & Korouki, A. (2013). Reputation: An Important Component of Corporations' Value. International Journal of Academic Research in Business and Social Sciences, 3 (7), 15–20. https://doi.org/10.6007/IJARBSS/v3-i7/6.
Berens, G., & Van Riel, C. (2004). Corporate associations in the academic literature: three main streams of thought in the reputation measurement literature. Corporate Reputation Review, 7 (2), 161–178. https://doi.org/10.1057/palgrave.crr.1540218.
Bergh, D.D., Ketchen, D.J., Boyd, B.K. & Bergh, J. (2010). New Frontiers of the Reputation – Performance Relationship: Insights From Multiple Theories. Journal of Management, 36 (3), 620–632. https://doi.org/10.1177/0149206309355320.
Blank, I. (1999) Osnovy finansovogo menedzhmenta [Fundamentals of financial management], Nika-Centr, Kyiv, Ukraine, (in Ukrainan).
Bouchikhi, H. & Kimberley, J. R. (2008). The soul of the corporation: How to manage the identity of your company. Upper Saddle, NJ: Wharton School Publishing.
Bromley, D. (2000). Psychological aspects of corporate identity, image and reputation. Corporate Reputation Review, 3 (3), 240-252. https://doi.org/10.1057/palgrave.crr.1540117.
Brown, T.J., Dacin, P.A., Pratt, M.G. & Whetten, D.A. (2006). Identity, intended image, construed image, and reputation: An interdisciplinary framework and suggested terminology. Journal of the Academy of Marketing Science, 34 (2), 99–106. https://doi.org/10.1177/0092070305284969.
Chun, R. (2005). Corporate reputation: Meaning and Measurement, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA. https://doi.org/10.4324/9780203218112.
Davies, G., Chun, R., da Silva, R.V. & Roper, S. (2001). The personification metaphor as a measurement approach for corporate reputation. Corporate Reputation Review, 4 (2), 113–127. https://doi.org/10.1057/palgrave.crr.1540137.
Davies, G. & Miles, C. (1998). Reputation management: theory versus practice. Corporate Reputation Review, 2 (11), 16–27. https://doi.org/10.1057/palgrave.crr.1540064.
Deephouse, D.L. & Carter, S.M. (2005). An examination of differences between organizational legitimacy and organizational reputation. Journal of Management Studies, 42 (2), 329–360. https://doi.org/10.1111/j.1467-6486.2005.00499.x.
Definition of corporate reputation. Reputation Institute. Measuremen https://www.reputationinstitute.com/solutions/reputation-measurement>. (2018, December, 01).
Deloitte (2014). Global survey on reputation risk Reputation@Risk 2014, Deloitte Touche Tohmatsu Limited www.deloitte.com/reputationrisksurvey. (2018, December, 01).
Doorley, J. & Garcia, H.F. (2006). Reputation Management: The Key to Successful Public Relations and Corporate Communications. New York: Routledge. https://doi.org/10.4324/9780203961483.
Dowling, G. R. (2004). Corporate reputations: Should you compete on yours? California Management Review, 46, 19–36. https://doi.org/10.2307/41166219.
Duhe, S. C. (2009). Good management, sound finances, and social responsibility: Two decades ofUS corporate insider perspectives on reputation and the bottom line. Public Relations Review, 35, 77–8. https://doi.org/10.1016/j.pubrev.2008.09.021.
Dyer, W.G. & Whetten, D.A. (2006). Family Firms and Social Responsibility: Preliminary Evidence from the S&P 500. Entrepreneurship Theory and Practice, 30 (6), 785–802. https://doi.org/10.1111/j.1540-6520.2006.00151.x.
Einwiller, S. A., Carroll, C. E, & Korn, K. (2010). Under what conditions do the news media influence corporate reputation? The roles of media dependency and need for orientation. Corporate Reputation Review, 12 (4), 299-315. https://doi.org/10.1057/crr.2009.28.
Fasaei, H., Tempelaar, M.P. & Jansen, J.P. (2018). Firm reputation and investment decisions: The contingency role of securities analysts' recommendations. Long Range Planning, 51 (5), 680–692. https://doi.org/10.1016/j.lrp.2017.07.010.
Fombrun, C. J. (1996). Reputation: Realizing value from the corporate image. Boston,MA: HarvardBusiness School Press. https://doi.org/10.1002/npr.4040150212.
Fombrun, C. J. & Shanley, M. (1990). What's in a Name? Reputation-building and Corporate Strategy. Academy of Management Journal, 33, 233–258. https://doi.org/10.5465/256324.
Fombrun, C. J., Gardberg, N. A., & Sever, J. M. (2000). The reputation quotient: a multi-stakeholder measure of corporate reputation. Journal of Brand Management, 7 (4), 241-255. https://doi.org/10.1057/palgrave.crr.1540151.
Foreman, J., & Argenti, P. A. (2005). How corporate communication influences strategy implementation, reputation and the corporate brand: an exploratory qualitative study. Corporate Reputation Review, 8 (3), 245-264.
Gabbioneta, C., Ravasi, D. & Mazzola, P. (2007). Exploring the drivers of corporate reputation: A study of Italian securities analysts, Corporate Reputation Review, 10(2), 99–123. https://doi.org/10.1057/palgrave.crr.1550048.
Gioia, D.A., Schultz, M. & Corley, K.G. (2000). Organizational identity, image, and adaptive instability. Academy of Management Review, 25 (1), 63–81. doi:10.5465/amr.2000.2791603.
Goldstein, K. (2010). Corporate Reputation Management in the PharmaceuticalIndustry, Kimberly Goldstein, June 25.
Gorin, S.V. (2006). Delovaja reputacija organizacii [Business reputation of the organization], Feniks, Rostov na Donu, Russia (in Russian).
Gotsi, M., & Wilson, A. (2001). Corporate reputation: seeking a definition. Corporate Communications: An International Journal, 6 (1), 24-30. https://doi.org/10.1108/13563280110381189.
Grebeshkova, O.M. & Shimanska, O.V. (2007). Dilova reputaciya yak strategichnij aktiv kompaniyi [Business reputation as a strategic asset of the company], Strategiya rozvitku Ukrayini (ekonomika, sociologiya, pravo), 1(2), 493–502, Kyiv, Ukraine, (in Ukrainan).
Harris, T.L. (1988). Value – Added Public Relations. The Secret Weapon of Integrated Marketing, Chicago, IL, McGraw Hill. https://doi.org/10.1108/jcm.1918.104.22.1686.4
Hatch, M. J., & Schultz, M. (1997). Relations between organizational culture, identity and image. European Journal of Marketing, 31 (5–6), 356–365. https://doi.org/10.1108/eb060636.
Iwu-Egwuonwu, PC. (2011), Corporate Reputation & Firm Performance: Empirical Literature Evidence, International. Journal of Business and Management, 6 (4)197–204. https://doi.org/10.2139/ssrn.1659595.
Kantar TNS (2018). ConversionModel, Kantar TNS Ukraine https://tns-ua.com/en/what-we-do/tools/conversionmodel-peremoga-u-borotbi-za-chastku-rinku. (2018, December, 01).
Lange, D., Lee, P.M. & Dai, Y. (2010). Organizational reputation: A review. Journal of Management, 37, 153–184. https://doi.org/10.1177/0149206310390963.
Logsdon, J. M. & Wood, D.J. (1999). Toward a Theory of Business Citizenship. Presentation at the Social Issues in Management Division, Academy of Management, August.
MacMillan, K., Money, K., Downing, S. & Hillenbrand, C. (2005). Reputations in relationships: Measuring experiences, emotions and behaviors. Corporate Reputation Review, 8, 214–32. https://doi.org/10.1057/palgrave.crr.1540251.
Mahon, J. F. (2002). Corporate reputation: a research agenda using strategy and stakeholder literature. Business & Society, 41 (4), 415-445. https://doi.org/10.1177/2F0007650302238776.
Mahon, J. F. & Wartick, S. L. (2003). Dealing with Stakeholders: How Reputation, Credibility and Framing Influence the Game, Corporate Reputation Review, 6(1), 19–35.https://doi.org/10.1057/palgrave.crr.1540187.
Martin, G, Beaumont, P., Doig, R., & Pate, J. (2005). Branding: a new performance discourse for HR? European Management Journal, 23 (1), 76-88. https://doi.org/10.1016/S1135-2523(12)60093-8.
Melewar, T. C., Karaosmanoglu, E., & Paterson, D. (2005). Corporate identity: concept, components and contribution. Journal of General Management, 31 (1), 59-81. https://doi.org/10.1177/030630700503100104.
Meijer, M., & Kleinnijenhuis, J. (2006). Issue news and corporate reputation: applying the theories of agenda setting and issue ownership in the field of business communication. Journal of Communication, 56 (3), 543-559. https://doi.org/10.1111/j.1460-2466.2006.00300.x.
Noel, E. (1978). Massovye oprosy. Vvedenie v metodiku demoskopii [Massive polls. Introduction to the technique of demoscopy], Progress, Moscow, Russia (in Russian).
Ponzi, L., Fombrun, C., & Gardberg, N. (2011). RepTrak™ pulse: conceptualizing and validating a short-form measure of corporate reputation. Corporate Reputation Review, 14 (1), 15-35. https://doi.org/10.1057/crr.2011.5.
Resnick, J. (2004). Corporate reputation: managing corporate reputation – applying rigorous measures to a key asset. The Journal of Business Strategy, 25 (6), 30-38. https://doi.org/10.1108/02756660410569175.
Riepina I.M. & Kovtun V.P. (2012). Komparativnij analiz dilovoyi reputaciyi pidpriyemstva [A comparative analysis of the business reputation of the enterprise], Kyivskij universitet, 27 (1), 237–242, Kyiv, Ukraine, (in Ukrainan).
Rindova, V.P. (2016). Reputation, The Palgrave Encyclopedia of Strategic Management, (1-6). https://doi.org/10.1057/978-1-349-94848-2_564-1.
Rindova, V.P., & Fombrun C.J. (1999). Constructing competitive advantage. The role of firm-constituent interactions. Strategic Management Journal, 20, 691–710. https://doi.org/10.1002/(SICI)1097-0266(199908)20:8%3C691::AID-SMJ48%3E3.0.CO;2-1.
Rindova, V.P., Petkova, A.P. & Kotha, S. (2007). Standing out: How new firms in emerging markets build reputation. Strategic Organization, 5, 31–70. https://doi.org/10.1177%2F1476127006074389.
Rindova, V.P., Pollock, T.G. & Hayward, M.L.A. (2006). Celebrity firms: The social construction of market popularity. Academy of Management Review, 31, 50–71https://doi.org/10.5465/amr.2006.19379624.
Rindova, V.P., Williamson, I.O., Petkova, A.P. & Sever, J.M. (2005). Being good or being known: An empirical examination of the dimensions, antecedents, and consequences of organizational reputation. Academy of Management Journal, 48, 1033–1049. https://doi.org/10.5465/amj.2005.19573108.
Roberts, P.W., & Dowling, G.R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23, 1077–1093. https://doi.org/10.1002/smj.274.
Roper, S., & Fill, C. (2012). Corporate reputation: brand and communication. Essex: Pearson Education Limited.
Sarstedt, M., & Schloderer, M. P. (2010). Developing a measurement approach for reputation of non-profit organizations. International Journal of Nonprofit & Voluntary Sector Marketing, 15 (3), 276-299. https://doi.org/10.1002/nvsm.389.
Schultz, M., Hatch, M. J., & Larsen, M. H. (2000). The expressive organisation: linking identity, reputation, and corporate brand. Oxford, UK: Oxford University Press.
Smith, K. T, Smith, M., & Wang, K. (2010). Does brand management of corporate reputation translate into higher market value? Journal of Strategic Marketing, 18 (3), 201-221. https://doi.org/10.1080/09652540903537030.
Schnietz, K. E. & Epstein, M. J. (2005). Exploring the financial value of a reputation for corporate social responsibility during a crisis. Corporate Reputation Review, 7, 327–45. https://doi.org/10.1057/palgrave.crr.1540230.
Schwaiger, M. (2004). Components and parameters of corporate reputation—an empirical study. Schmalenbach Business Review, 56, 46–71. https://doi.org/10.1007/bf03396685.
Scott, S.G. & Lane, V.R. (2000). A stakeholder approach to organizational identity. Academy of Management Review, 25 (1), 43–62. https://doi.org/10.5465/amr.2000.2791602.
Shenkar, O. & Yuchtman-Yaar, E. (1997). Reputation, image, prestige, and good will: An interdisciplinary approach to organizational standing. Human Relations, 50, 1361–87. https://doi.org/10.1177/001872679705001102
Soanes, C. & Stevenson, A. (2005). The Oxford Dictionary of English. Oxford University Press, Oxford.
Tirole J. (1996). A theory of collective reputation (with applications to the persistence of corruption and to firm quality). Review of Economic Studies, 63, 1–22. https://doi.org/10.2307/2298112
Tkalac, A., & Vercic, D. (2007). Reputation as matching identities and images: extending Davies and Chun’s (2002) research on gaps between the internal and external perceptions of the corporate brand. Journal of Marketing Communications, 13 (4), 277-290. https://doi.org/10.1080/13527260701300151.
Walker, K. A. (2010). A systematic review of the corporate reputation literature: definition, measurement, and theory. Corporate Reputation Review, 12 (4), 357-387. https://doi.org/10.1057/crr.2009.26.
Wartick, S. L. (1992). The relationship between media exposure and changes in corporate reputation. Business and Society, 31, 33–47. https://doi.org/10.1177/000765039203100104.
Weber, Sh. (2007). Safeguarding Reputation: Strategies to Recover Reputation, Bruegel. http://webershandwick.com/resources/ws/flash/safe_Rep_ Reputation.pdf (2018, December, 01).
Winn, M. I., Macdonald, P., & Zietsma, C. (2008). Managing industry reputation: the dynamic tension between collective and competitive reputation management strategies. Corporate Reputation Review, 11 (1), 35-55. https://doi.org/10.1057/crr.2008.4.
Zyglidopoulos, S. C. (2001). The impact of accidents on firms’ reputation for social performance. Business and Society, 40, 416–41. https://doi.org/10.1177/000765030104000404.
Copyright (c) 2018 European Journal of Management Issues
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The authors agree with the following conditions:
1. Authors retain copyright and grant the journal right of first publication (Download agreement) with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors have the right to complete individual additional agreements for the non-exclusive spreading of the journal’s published version of the work (for example, to post work in the electronic repository of the institution or to publish it as part of a monograph), with the reference to the first publication of the work in this journal.
3. Journal’s politics allows and encourages the placement on the Internet (for example, in the repositories of institutions, personal websites, SSRN, ResearchGate, MPRA, SSOAR, etc.) manuscript of the work by the authors, before and during the process of viewing it by this journal, because it can lead to a productive research discussion and positively affect the efficiency and dynamics of citing the published work (see The Effect of Open Access).