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Open Access
Article
Publication date: 6 December 2022

Sandra Jacobs and Christine Liebrecht

Since public sector organizations provide services to citizens but struggle with poor perceptions of their functioning, it is valuable to examine how their online…

Abstract

Purpose

Since public sector organizations provide services to citizens but struggle with poor perceptions of their functioning, it is valuable to examine how their online responses to complaints on social media could impact their reputation. Yet, surprisingly little is known about effects of public organizations' webcare. Therefore, this study assesses the impact of the webcare's tone, response strategy and user's involvement on participants’ continuance intention and perceptions of reputation.

Design/methodology/approach

Two experimental studies (Study 1: N = 424; Study 2: N = 203) with an interval of one week were carried out to assess the effects of singular and repeated exposure to webcare by a Dutch public transport organization on the participants' continuance intention and perceived organizational reputation. Study 1 examined the effects of the webcare's tone (corporate vs conversational human voice (CHV)) and response strategy (accommodative vs defensive); Study 2 contained tone of voice and user's involvement (observer vs complainer). The effects of repeated exposure to the webcare's tone were also examined.

Findings

The results indicate that perceptions of CHV in webcare contribute to webcare as reputation management tool, since it leads to immediate higher reputation scores that also remain stable after repeated exposure. Furthermore, people's continuance intention increased after repeated exposure to webcare responses that were perceived as CHV, thus a natural and engaging communication style, indicating this is an effective strategy for customer care as well. No substantial impact was found for response strategy and user's involvement in the complaint handling.

Originality/value

The novelty of this study is that the authors assess the effects of the webcare's tone combined with response strategy and user's involvement in a public sector context with a sector-specific conceptualization of reputation and continuance intention measured after singular and repeated exposure to webcare.

Details

Journal of Communication Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1363-254X

Keywords

Article
Publication date: 9 November 2022

David E. Cavazos, Matthew Rutherford and Triss Ashton

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

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 10 October 2016

Fraser Bell

As place branding is reaching an impasse in terms of its development with numerous shortcomings being uncovered, this commentary suggests that the practice can be…

1129

Abstract

Purpose

As place branding is reaching an impasse in terms of its development with numerous shortcomings being uncovered, this commentary suggests that the practice can be repositioned as part of the more comprehensive notion of place reputation. By building on the idea of corporate reputation and embryonic evidence of its application to geographical entities, this paper aims to argue for a more substantial translation of this concept to cities and regions.

Design/methodology/approach

This idea was investigated through empirical work in English second-tier cities, specifically concerning semi-structured interviews with local and regional stakeholders on the topic of place reputation conducted in 2014.

Findings

The empirical work found that place branding and place reputation can remain complimentary to one another, are entwined and are problematic to disentangle. This discovered that place branding is not as effective when used in isolation, and the concept benefits from the support of a more comprehensive reputation management strategy. In addition, this study found that the idea of reputational capital is a key theory for the development of reputation, allowing this broad notion to be tackled in terms of audiences, domains and sectors.

Originality/value

Moreover, this commentary constitutes a novel piece of research, and this is achieved by exploring gaps in both interdisciplinary place branding and corporate literatures of reputation being applied to place. This is addressed from a relational economic geography perspective, with the support of reputational capital which has links to Pierre Bourdieu’s (1986) Forms of Capital, this seeks to raise issues and add value to current place branding debates.

Details

Journal of Place Management and Development, vol. 9 no. 3
Type: Research Article
ISSN: 1753-8335

Keywords

Article
Publication date: 1 September 1999

Michael T. Ewing, Albert Caruana and Ernest Rinson Loy

The importance of corporate reputation is widely acknowledged in both contemporary and academic business writings. While reputation is a difficult concept to measure…

1866

Abstract

The importance of corporate reputation is widely acknowledged in both contemporary and academic business writings. While reputation is a difficult concept to measure, managers frequently assume a positive relationship between business performance and corporate reputation. The literature avers that from a client’s perspective, a healthy reputation may act as a risk suppresser. In this empirical study, the nature of corporate reputation and risk aversion in professional engineering consultancies is examined. Findings support a three‐dimensional reputation construct, but there is no evidence to suggest that a good corporate reputation reduces clients’ perceived risk. Implications are drawn, limitations noted and directions offered for ongoing research.

Details

Corporate Communications: An International Journal, vol. 4 no. 3
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 31 December 2016

Hee-Sung Bae

There are two objectives of this study: to analyze gaps in customer satisfaction and to test the customer loyalty gap on the basis of the reputation of Busan New Port…

Abstract

There are two objectives of this study: to analyze gaps in customer satisfaction and to test the customer loyalty gap on the basis of the reputation of Busan New Port. This study identifies the relationships between variables as well as the conceptual and operational definitions using prior research. Data was collected from 93 members of the International Freight Forwarders Association. The reliability and validity of the data was analyzed and the relationships between the variables were tested by analysis of covariance. The results are as follows: First, the reputation of Busan New Port means the abilities in which the port provides valuable benefits to international freight forwarders. The analytical results show that there is a gap in customer satisfaction between high- level and low- level reputation. Second, the levels of reputation are based on the gap in customer loyalty. This means that there are gaps in the friendly attitude of international freight forwarders and sustainable usage on the basis of the varying levels of port reputation.

Details

Journal of International Logistics and Trade, vol. 14 no. 3
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 1 March 1993

Paul Herbig and John Milewicz

Considers the importance of a firms′ reputation to the success orfailure of its brands; the effect on the firm′s brand when a firm′sreputation decays; how important it is…

4414

Abstract

Considers the importance of a firms′ reputation to the success or failure of its brands; the effect on the firm′s brand when a firm′s reputation decays; how important it is for a firm to maintain or advance I reputation; how a brand′s reputation can be transferred to other products. Addresses and discusses these issues in detail and emphasises the importance of reputation to the ultimate success of a product and company and warns against ignoring its fragility.

Details

Journal of Consumer Marketing, vol. 10 no. 3
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 1 January 2002

Fouad K. AlNajjar and Ahmed Riahi‐Belkaoui

The article hypothesizes that the level of reputation affects both the informativeness of earnings and the magnitude of discretionary accounting accrual adjustments. The…

Abstract

The article hypothesizes that the level of reputation affects both the informativeness of earnings and the magnitude of discretionary accounting accrual adjustments. The hypothesis exploits the following: the positive relationship between reputation and firms' risk‐return profiles, and managers' incentives in using discretionary accounting accrual adjustments. Results show that reputation is positively associated with earnings' explanatory power for returns, and related to the magnitude of accounting accrual adjustments.

Details

Review of Accounting and Finance, vol. 1 no. 1
Type: Research Article
ISSN: 1475-7702

Article
Publication date: 11 May 2010

Thomas M. Krueger, Mark A. Wrolstad and Shane Van Dalsem

The purpose of this paper is to examine the contemporaneous relationship between changes in corporate reputations and stock prices.

1765

Abstract

Purpose

The purpose of this paper is to examine the contemporaneous relationship between changes in corporate reputations and stock prices.

Design/methodology/approach

The Harris Interactive Reputation QuotientTM is used as a measure of corporate reputation. Stock return and risk measures are evaluated for each Reputation QuotientTM survey period for the years 1999‐2007.

Findings

The results provide evidence that, in the aggregate, firm reputations are procyclical. Additionally, firms with improved reputations enjoy lower volatility in their stock prices than firms with diminished reputations.

Research limitations/implications

Due to the Harris Poll Online methodology, it is not clear that the price changes occur concurrently with the change in reputation.

Originality/value

This paper contributes to the finance literature by examining the effect of a change in corporate reputation on stock price.

Details

Managerial Finance, vol. 36 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 27 April 2010

Pieter Klaas Jagersma

The article aims to elaborate on the importance of “managing reputation equity” in the banking industry.

2827

Abstract

Purpose

The article aims to elaborate on the importance of “managing reputation equity” in the banking industry.

Design/methodology/approach

This article has been derived in part from the reputation improvement plans of investment banks and in part from the author's own experience as a non‐executive director.

Findings

The most critical and strategic asset a bank possesses is its reputation. A “reputation improvement plan” is a critical document for the board of directors. In practice, reputation improvement plans vary enormously in terms of structure, format and content. This article summarizes what content should ideally be included. Furthermore, it is important to remember that reputation improvement planning is just one component of the process – the other components are implementing the plan, monitoring progress and auditing the reputation's situation. And, although the focus is often on the document, it is the process of drafting, discussing, agreeing and using it that is important. The document facilitates discussion and decision making and can then be used as a guide to action.

Practical implications

The process of producing a “reputation improvement plan” forces management to think through the issues related to a particular reputation and how to address them. The document itself summarizes the reputation's competitive position and guides the implementation of strategic initiatives. In banks (such as Goldman Sachs) that the board of directors with significant input from stakeholders (for instance, important customers), revised in a series of iterations with management before being agreed, and linked to other functional plans (e.g. operations, sales plans etc.) ensuring that all the bank's activities are focused on achieving common goals. A successful reputation improvement plan and program will only occur when at least the following combined forces are effective: a vision of something better (a clear target embedded in a plan) and a few practical first steps to achieve (to launch the process). Reputation is not a gift, but really hard work.

Originality/value

Reputational capital is a vital strategic resource. Reputations reflect a bank's relative success in fulfilling the expectations of multiple stakeholders. They are crucial because they “work” for banks. Therefore, establishing a great reputation is a key element of organizational strategy. Banks will become increasingly focused on managing their reputations over the next decade. The article is about unlocking the value of reputation through reputation improvement planning.

Details

Business Strategy Series, vol. 11 no. 3
Type: Research Article
ISSN: 1751-5637

Keywords

Article
Publication date: 1 March 1994

John Milewicz and Paul Herbig

Can a brand′s reputation be transferred successfully to other products?What is the importance of a firm′s reputation to the success or failureof its brands? What is the…

7612

Abstract

Can a brand′s reputation be transferred successfully to other products? What is the importance of a firm′s reputation to the success or failure of its brands? What is the effect on the firm′s brands when a firm′s reputation, through either acquisition or restructuring, decays. How important is it for a firm to maintain or enhance its reputation? Describe a model of reputation creation and destruction and shows how the brand extension decision can be addressed using the model.

Details

Journal of Product & Brand Management, vol. 3 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

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