Corporate reputation based theory of choice between organic, hybrid and inorganic growth strategies

Abstract

Purpose

The purpose of this paper is to examine how organizational resources: mass media corporate reputation and relative performance influences firms choice between organic, hybrid and inorganic growth strategies and how industry competition moderates this relationship.

Design/methodology/approach

Using panel data and Tobit regression on sample of firms from emerging markets, i.e. India, the study is conducted.

Findings

The results indicate that firm's corporate reputation, its relative performance with respect to competitors, positively influences hybrid growth strategy and negatively influences organic growth strategies. Further, results show that competition acts as a moderator of firm's relative performance and growth choice.

Originality/value

The study contribute to resource-based view of the firm and corporate reputation literature by the extending the deterministic role of corporate reputation to not only firms’ market-based performance but also strategic choice.

Citation

Agnihotri, A. (2014), "Corporate reputation based theory of choice between organic, hybrid and inorganic growth strategies", Corporate Communications: An International Journal, Vol. 19 No. 3, pp. 247-259. https://doi.org/10.1108/CCIJ-11-2012-0080