How to Judge What Can’t be Seen and Touched? The Contingent Effect of Media Reputation on Young Firms’ Access to Venture Capital

Abstract

This study explores the differential benefits of media reputation for young firms obtaining venture capital (VC) under different levels of technical and market uncertainty. The analyses of the media reputation and VC funding of 414 information technology firms show that media reputation has a positive effect on the amount of VC funding they receive. This effect is particularly pronounced under conditions of market optimism, when VC investors are pressed to disburse more capital and to evaluate a larger number of young firms in a short period of time. The study contributes to reputation research and practice by drawing attention to the contingent benefits of reputation depending on the industry context in which stakeholders evaluate and compare competing firms.

CEOs' reputation, quality management and environmental innovation: The roles of stakeholder pressure and resource commitment

“…First, unlike previous research that indicates that reputation is crucial for start‐ups seeking venture capital (Amankwah‐Amoah & Syllias, 2020; Petkova, 2014; Petkova, Rindova, & Gupta, 2008) and venture performance (Downing & Ma, 2017), we examine the indirect effect of reputation on environmental innovation. A major contention is that an examination of the role of the individual's reputation in driving environmental innovation is lacking.…”

“…Although reputation can drive quality management practices in organisations, a strong reputation might be insufficient for quality management practices. Arguably, previous research has focused on destination networks (Strobl & Peters, 2013), venture financing (Petkova, 2014; Shane & Cable, 2002) and performance (Downing & Ma, 2017). However, scholarly efforts showing how reputation enhances quality management and the extent to which its effectiveness is moderated by primary and secondary stakeholder pressures have been notably slow to emerge.…”

“…In spite of the importance placed on reputation by researchers and practitioners, our understanding about how reputation drives environmental innovation has not been examined explicitly. While the mechanism often used to explain a positive association between reputation and firm outcomes is intuitively appealing (Petkova, 2014; Xie & Lv, 2018), an understanding related to how and when entrepreneurial reputation drives environmental innovation lacks theoretical clarity. The urgency to address this deficit in the innovation literature motivates this study.…”

CelebrityandInfamy? The Consequences of Media Narratives About Organizational Identity

“…As a result, media reputation can be construed as a specific form of organizational reputation, with positive outcomes similar to those of a favorable organizational reputation. A good media reputation reduces operational costs, allows an organization to increase prices, and ultimately can lead to higher profitability (Deephouse, 2000;Petkova, 2014).…”

Impact of Media Reports on Innovative Behaviours of Photovoltaic Enterprises: Experience View from China

“…Continuous improvement of innovation ability is an important path to improve its own core competitiveness [12]. Within the enterprise, innovation is a systematic project needing its powerful financial support as backup force, and financial support is a beneficial guarantee for innovative quality [13]. In aspect of the relationship between external capital and enterprise innovative behaviours, Brown et al [14] discussed influence of external financing environment on enterprise innovative behaviours, and found that enterprise revenue in stock market improved its risk tolerance degree so as to enhance innovative force.…”