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Cyber-attacks that generate technical disruptions in organisational operations and damage the reputation of organisations have become all too common in the contemporary organisation. This paper explores the reputation repair strategies undertaken by organisations in the event of becoming victims of cyber-attacks.

For developing the authors’ contribution in the context of the Internet service providers' industry, the authors draw on a qualitative case study of TalkTalk, a British telecommunications company providing business to business (B2B) and business to customer (B2C) Internet services, which was a victim of a “significant and sustained” cyber-attack in October 2015. Data for the enquiry is sourced from publicly available archival documents such as newspaper articles, press releases, podcasts and parliamentary hearings on the TalkTalk cyber-attack.

The findings suggest a dynamic interplay of technical and rhetorical responses in dealing with cyber-attacks. This plays out in the form of marshalling communication and mortification techniques, bolstering image and riding on leader reputation, which serially combine to strategically orchestrate reputational repair and stigma erasure in the event of a cyber-attack.

Analysing a prototypical case of an organisation in dire straits following a cyber-attack, the paper provides a systematic characterisation of the setting-in-motion of strategic responses to manage, revamp and ameliorate damaged reputation during cyber-attacks, which tend to negatively shape the evaluative perceptions of the organisation's salient audience.

Once a corporate crisis is entangled with a social issue, how consumers make sense of the crisis can be impacted by issue-based opinion polarization. This study investigates the underlying mechanisms as consumers go through this process. This study also examines whether corporate social advocacy (CSA) can be an effective crisis-response strategy for mitigating reputational loss.

Theoretical inquiries were empirically tested using an online experiment (N = 792). The experiment set the context in China, in a working-overtime-issue-related crisis. It had a 2 (online exposure: anti-issue opinion vs. pro-issue opinion) × 2 (CSA: absence vs. presence) between-subject design with a continuous variable (pre-existing issue attitudes) measured before the manipulation.

This study found that pre-existing issue attitudes can be directly and indirectly associated with corporate reputation, for the issue attitudes influence how consumers attribute crisis blame. Such a direct effect of pre-existing issue attitudes varies depending on which polarized opinion consumers were exposed to on social media. This study also found CSA to be a robust crisis response strategy, through multiple mechanisms, in protecting the corporate reputation.

Scholars are scarcely aware of the threats that issue-based opinion polarization poses to corporate reputation. This study serves as an early attempt to provide theoretical explanations. In addition to this, this study extends the current conceptual understandings of CSA during corporate crises that involve social issues while adding fresh insights into the established typology of crisis-response strategies.

This study aims to investigate the dynamic interplay between the management control system (MCS) and organizational identity (OI) in the Deepwater Horizon incident involving British Petroleum (BP). It examines how the MCS manages challenges, particularly those addressing the embarrassment stemming from identity disparities between external portrayal (frontstage) and internal operations (backstage), with a focus on the often-underestimated influence of the media.

This study builds upon the frameworks developed by Ravasi and Schultz (2006) and Malmi and Brown (2008) to construct a theoretical framework that profoundly investigates the relationship between MCS and OI. The framework developed guided the research design and incorporated a qualitative approach complemented by an illustrative case study. The research data was rigorously gathered from diverse sources, including official BP documents and influential media outlets, with a particular focus on well-established American and British newspapers.

BP’s MCS plays a dual role: it exposes discrepancies in safety, leadership and values, causing embarrassment and identity damage, yet catalyses a sense-making process leading to organizational transformation and shifts in the OI. This transformation influences sense-giving and prompts changes in MCS. The study reveals an intricate interplay in identity management between frontstage audiences (e.g. influential media) and backstage actors (e.g. BP’s senior management). It highlights interdependencies both within and between MCS and OI, emphasizing their roles in interacting within identity management. The longitudinal recovery is intricately tied to mutual political interests between BP and the USA, which are significantly facilitated by the media’s role.

This study acknowledges limitations that point future research opportunities. Interviews could provide a more dynamic understanding of MCS changes and organizational transformations. Investigating the role of leadership, particularly the new chief executive office, and the influence of political versus organizational factors in shaping identity claims is essential. Additionally, the effectiveness and historical context of interdependencies should be quantitatively assessed. Theoretical limitations in the OI and MCS frameworks suggest the need for context-specific categorisations. This research serves as a foundation for further exploration of the intricate dynamics between MCS, OI and organizational responses to crises.

This study offers valuable insights with practical implications for organizations facing identity challenges in the wake of significant incidents. Organizations can better navigate crises by recognizing the multifaceted role of MCS in identity damage and restoration. It underscores the importance of addressing both frontstage and backstage aspects of OI while managing identity discrepancies, thereby enhancing transparency and credibility. Additionally, understanding the intricate interdependencies within OI and MCS can guide organizations in implementing more effective identity restoration strategies. Furthermore, the study highlights the significance of media influence and the need to engage with it strategically during crisis management.

This study’s findings have significant social implications for organizations and the broader public. By recognizing the multifaceted role of MCS in shaping identity, organizations can enhance transparency and credibility, rebuilding trust with the public. Additionally, the study highlights the critical role of media in influencing perceptions and decision-making during crises, emphasizing the importance of responsible and ethical reporting. Understanding the intricate interplay between MCS and OI can inform better crisis management strategies and improve how organizations respond to and recover from incidents, ultimately benefiting society by promoting more accountable and responsible corporate behaviour.

This study’s distinctness lies in its innovative exploration of MCS, which transcends traditional methodologies that focus narrowly on front or backstage aspects of OI and often adhere to predetermined MCS practices. It underscores the importance of concurrently addressing both the front- and backstage audiences in managing the embarrassment caused by identity discrepancies and restoration. The research uncovers multifaceted interdependencies within MCS and OI, and these extend beyond simplistic relationships and emphasize the complex nature of identity restoration management.

This study examines how firm product reputation functions as an internal and external expectations-setting mechanism shaping firm and external stakeholder behavior.

Longitudinal analysis of 17,879 recalls from 15 automobile manufacturers operating in the United States between 1967 and 2016.

Applying the behavioral theory of the firm (BTF) and signaling theory, this study’s findings suggest that product safety reputation creates variability in the likelihood of both voluntary and government-ordered recalls.

Performance expectations set by past product performance influence managerial decision-making such that products with a higher reputation for quality are more likely to be voluntarily recalled than are their less reputable counterparts. Similarly, regulators are more likely to order the recall of higher reputation products, suggesting that past product performance also influences enforcement behavior. Finally, the scope and severity of product defects are shown to interact with product reputation to influence the likelihood of government-ordered recall.

Firms and firm stakeholders make distinct decisions based on performance variations within firm product portfolios.

Overall firm reputation is important, but there are distinct dynamics that result in product performance variability within firm product portfolios that have important implications on issues such as product safety recalls.

This study's findings reveal that as an internal signal, managers' expectations of product performance can change their behavior following product safety defects. Specifically, voluntary product recalls are more likely for higher-reputation products than those with lower reputations for product safety. This suggests that firm behavior regarding product safety recalls is not consistent within their own product lines. Externally, this study’s findings suggest that product reputation also influences relationships with key stakeholders. Product reputation for quality was shown to be associated with an increased likelihood of government sanctions. Regulators will also be more likely to initiate punitive sanctions against higher-reputation products as the severity and scope of safety defects increase. Under such circumstances, higher-reputation products are more likely to face government sanctions than lower-reputation products. Hence, government regulatory behavior is subject to influence from performance signals such as product reputation.

With the evolution of the turbulent environment constantly triggering the emergence of a trust crisis between organizations, how can university–industry (U–I) alliances respond to the trust crisis when conducting green technology innovation (GTI) activities? This paper aims to address this issue.

The authors examined the process of trust crisis damage, including trust first suffering instantaneous impair as well as subsequently indirectly affecting GTI level, and ultimately hurting the profitability of green innovations. In this paper, a piecewise deterministic dynamic model is deployed to portray the trust and the GTI levels in GTI activities of U–I alliances.

The authors analyze the equilibrium results under decentralized and centralized decision-making modes to obtain the following conclusions: Trust levels are affected by a combination of hazard and damage (short and long term) rates, shifting from steady growth to decline in the presence of low hazard and damage rates. However, the GTI level has been growing steadily. It is essential to consider factors such as the hazard rate, the damage rate in the short and long terms, and the change in marginal profit in determining whether to pursue an efficiency- or recovery-friendly strategy in the face of a trust crisis. The authors found that two approaches can mitigate trust crisis losses: implementing a centralized decision-making mode (i.e. shared governance) and reducing pre-crisis trust-building investments. This study offers several insights for businesses and academics to respond to a trust crisis.

The present research can be extended in several directions. Instead of distinguishing attribution of trust crisis, the authors use hazard rate, short- and long-term damage rates and change in marginal profitability to distinguish the scale of trust crises. Future scholars can further add an attribution approach to enrich the classification of trust crises. Moreover, the authors only consider trust crises because of unexpected events in a turbulent environment; in fact, a trust crisis may also be a plateauing process, yet the authors do not study this situation.

First, the authors explore what factors affect the level of trust and the level of GTI when a trust crisis occurs. Second, the authors provide guidelines on how businesses and academics can coordinate their trust-building and GTI efforts when faced with a trust crisis in a turbulent environment.

First, the interaction between psychology and innovation management is explored in this paper. Although empirical studies have shown that trust in U–I alliances is related to innovation performance, and scholars have developed differential game models to portray the GTI process, building a differential game model to explore such an interaction is still scarce. Second, the authors incorporate inter-organizational trust level into the GTI level in university–industry collaboration, applying differential equations to portray the trust building and GTI processes, respectively, to reveal the importance of trust in CTI activities. Third, the authors establish a piecewise deterministic dynamic game model wherein the impact of crisis shocks is not equal to zero, which is inconsistent with most previous studies of Brownian motion.

When customers make their purchase decisions, they use all the available information from all the initiatives and behaviors that companies carry out with their stakeholders. This research aims to identify whether a company's financial performance and reputation determine the customer's perception of the company, which affects their engagement. This study is based on the theories of engagement, stakeholder and signalling. Are customers engaged solely based on their feeling of satisfaction, or do employees and brand value play a role in this engagement?

Secondary data was collected from 14 automotive companies and empirically tested through a longitudinal study over the period 2010–2018. For panel data analysis this study used weighted least squares.

The variables proposed in this research, firm value and corporate reputation, were significant for the analysed panel sample. Furthermore, employee satisfaction influences customer engagement as an independent and moderating variable, just like brand value.

This research contributes to the emerging stream of customer engagement research by combining insight as a company-initiated resource, with the sheer transaction, integrating data obtained from employees and customers in an international context.

Corporations are confronted with growing demands to take a stand on socio-political issues, i.e. corporate social advocacy (CSA), which affects their reputation in the public. Companies use different CSA message strategies, including calling the public to support and act on the issue they advocate. Using reactance theory, the authors investigate the impact of CSA messages with a call to action on corporate reputation in the case of a company's gender equality initiative.

A one-factorial (CSA message with or without a call to action) between-subjects experiment was conducted by surveying 172 individuals living in Switzerland. The CSA messages were created in the context of gender equality.

The authors' study indicates that CSA messages with a call to action compared to those without overall harmed corporate reputation due to individuals' reactance, which is higher for CSA messages with a call to action, negatively affecting corporate reputation. The impact of the CSA message strategy with a call to action on corporate reputation remains significant after controlling for issue alignment and political leaning.

Communicating about socio-political issues, especially taking a stand, is a significant challenge for corporations in an increasingly polarized society and has often led to backlash, boycotts and damage to corporate reputation. This study shows that the possible adverse effects of advocating for socio-political issues can be related to reactance. It emphasizes that companies advocating for contested issues must be more cautious about the message strategy than the issue itself.

This study aims to examine the implications of short-term and long-term reputation change because of government agency responses to firm product defects.

This study’s findings have important implications for both scholars and practitioners. From a scholarly perspective, the authors create a more fine-grained examination of reputation that may be used to assess various performance dimensions. From a practice perspective, managers must realize that reputation can be one of an organization’s most important resources as it meets each of the valuable, rare, inimitable and nonsubstitutable criteria associated with those resources capable of providing sustainable competitive advantage.

Analysis of 17,879 product recalls from 15 automobile manufacturers in the US suggests that firms with higher long-term reputations are more likely to face regulator sanctions when a reputation-damaging event happens. On the other hand, firms with higher short-term reputations are less likely to face sanctions in such circumstances. Finally, firms whose short-term reputation exceeds their long-term reputation are less likely to be sanctioned by regulators when reputation-damaging events occur.

There are several limitations that should be addressed. First, as our reputation measure is based on government investigations of potential defects, vehicles that have never been inspected are not included in the sample. Although this number is likely extremely low, omitting vehicles that have never been inspected leaves out some high-reputation firms from the sample. In addition, the study relies on a single-firm stakeholder that is capable of punitive actions.

From a practical perspective, this study’s findings encourage managers to think about the temporal aspects associated with firm reputation, and to realize that stakeholders may react differently when their expectations are not met depending on an organization’s relative long- and short-term reputations. From a theoretic perspective, the primary contribution of this study is to illustrate how long-term and short-term changes in reputation can provide mixed signals to firm stakeholders regarding future performance.

This study explores the temporal aspects of firm reputation by examining how government sanctions vary depending on firms’ long-term (10 years) and short-term (1 year) reputation. The findings of this study contribute to current reputation research by illustrating the variation in government responses to product defects as a function of short-term and long-term reputation. In doing so, the important role of the timing of firm performance is considered.

Nowadays, universities increasingly consider reputation as a key component for improving quality and rankings. A positive reputation opens doors to added value and diverse opportunities. This paper aims to explore Middle Eastern higher education managers' perceptions of university reputation components.

Given the significance of this concept in Middle Eastern universities, a descriptive phenomenological qualitative approach is adopted to identify these key components. The study includes interviews with university managers, and data are collected through semi-structured interviews and analyzed thematically.

The findings reveal that, from the perspective of higher education managers, university reputation is influenced by four main components: university management and leadership, quality and performance, identity and image and social responsibility. These components are tailored to the context of Middle Eastern countries.

Practical implications are clearly laid out in the form of four key themes for higher education managers in Middle Eastern countries to manage reputation.

The study’s outcomes can be used as a guide for university managers in developing countries to change the situation in their favor and achieve great success in the competitive condition of universities by planning and making policies in this direction. Also, the managers of higher education in the Middle Eastern countries can take advantage of the components of this study to improve the quality and quantity of their universities and take an important step towards increasing the university’s reputation at the international level.

Although the association between sustainability assurance (SA) quality and firm value has been examined in previous studies, the moderating relationship is novel in this study and highlights the effect of corporate environmental sustainability performance (CESP) on the relationship between SA quality and firm value. This study aims to examine whether such an effect is strengthened or weakened by eco-efficiency, as measured by ISO 14001 certification, aggregate CESP score and each individual dimension of CESP (emission reduction [ER], resource reduction [RR] and product innovation [PI]).

The sample includes 40 companies in Euronext Paris with the largest market capitalisations (the Cotation Assistée en Continu 40 [CAC 40] index) from 2010 to 2020. The authors apply the feasible generalised least squares regression technique to estimate all the regression models. Because observed associations may be biased by reverse causation or self-selection, the authors use the instrumental variable approach and Heckman two-stage estimation.

The results show that SA quality had a positive and significant effect on firm value. Second, the authors demonstrate that CESP, as assessed by ISO 14001 certification, has a stronger interaction with assurance quality and acting as a moderator variable. Using the ASSET4 scores, an alternative proxy for CESP, the authors find inconsistent evidence regarding the impact of CESP attributes. The CESP and ER scores are homogeneous and have a positive effect on firm value. However, the PI and RR CESP attributes are not homogenous and do not have the same interactive effect on firm value. The results are robust to the use of an instrumental variable approach and the Heckman two-stage estimation procedure.

Policy implications: Regulators may be interested in the findings when considering current and future assurance requirements for sustainability reporting, and shareholders when considering SA as an investment choice criterion. The insights into and enhanced understanding of the incentives for obtaining high SA quality can help policymakers develop effective policies and initiatives for SA. Considering the possible improvements in sustainability performance when obtaining a high level of sustainability verification, governments need to consider mandating SA.

Firms receive clear confirmation of the importance of investing in SA quality. Financial markets do not evaluate SA dichotomously but reward companies with higher SA quality because of the greater credibility it provides. Firms should allocate a significant percentage of their annual budgets and other relevant resources to environmental training and development programmes to improve and maintain environmental performance. If they care about environmental issues, they must announce this by issuing sustainability reports and seeking assurance of the information disclosed. High-quality assurance not only has a significant effect on investors’ investment reliability judgements but also the perceived credibility of environmental performance fully moderates the effect of assurance on these judgements.

This study has social implications; the authors find that the French market rewards firms that provide a high-quality assurance to guarantee the integrity of their sustainability reports. Therefore, by incorporating environmental sustainability into their financial goals, a better assurance ultimately will urge firms to move from green washing to strategic goals, which is beneficial for society. Further, firms that focus on sustainability as part of their business strategy may attract employees who engage in green behaviours at work and create a friendlier and productive environment because it gives meaning to the work they do and keeps them engaged to the level needed to perform their jobs capably.

This study contributes to the literature by re-examining the relationship between SA quality and firm value. It also provides new evidence on the moderating effect of CESP on the SA quality–firm value nexus. Specifically, it explores the joint effect of credibility and eco-efficiency on market confidence in sustainability information.