The Effect of Reputation on the Decision to Joint Venture

Abstract

This paper focuses on the impact that reputation has on the decision to proceed with a strategic alliance. Employing reputation constructs adapted from the Fortune Corporate Reputation Survey, we manipulated a target firm’s reputation in an experimental design. The subjects were placed in the role of CEO of the partner firm and asked whether they would engage in the alliance. Findings indicate that (1) reputation is a multidimensional construct, (2) the personal information‐processing characteristics of the decision‐maker mediate the reputation effect and may suppress the reputation information, (3) subjects may compensate weaker elements of reputation for stronger ones when making decisions, (4) product and management reputation are the most important factors, and (5) reputation is a factor affecting the decision regardless of whether the proposed target is a supplier or a competitor. © 1997 by John Wiley & Sons, Ltd.

Being Good or Being Known: An Empirical Examination of the Dimensions, Antecedents, and Consequences of Organizational Reputation

“…First, this study focused on a single type of reputation: an organization's reputation with its customers. Since organizations may have multiple reputations with different stakeholder groups (Dollinger et al, 1997), future research should examine how the two dimensions of reputation we propose affect the economic payoffs associated with different types of reputation, such as reputation with employees or reputation with suppliers. Further, the question of the extent to which an organization's reputation indeed varies along the two dimensions over stakeholder groups is of significant theoretical and practical interest.…”

“…Reputation is viewed as a valuable intangible asset that provides a firm with sustainable competitive advantages (Barney, 1991;Hall, 1992) because it influences stakeholders' economic choices vis-à -vis the organization (Benjamin & Podolny, 1999;Dollinger, Golden, & Saxton, 1997;Deephouse, 2000) and contributes to differences in organizational performance. Indeed, numerous studies have documented a positive relationship between a firm's reputation and its financial performance (Fombrun & Shanley, 1990;Podolny, 1993;Roberts & Dowling, 2002).…”

Spillovers And Governance: An Analysis Of Knowledge And Reputational Spillovers In Information Technology

“…Kreps (1990) posited that internal governance mechanisms are designed to create and protect a firm's reputation. If reputation can affect choices of alliance partners (e.g., Dollinger, Golden, & Saxton, 1997;Houston, 2003;Kim, Lin, & Slovin, 1997;Stuart, 1998), it may also influence alliance contracts. The ability of a transaction to affect a firm's reputation will be a key issue in governance because it can influence the firm's ability to win future business.…”

The Factors Affecting the Level of Trust Between Buyer Seller: An Example From Household Appliances Sector

“…Reputation attributes the perceptions and turn backs of the others about the company (Williams et al, 2005). A firm with high level of reputation will be a better strategic business partner in comparison with others in the channel system (Dollinger et al, 1997). In this context accordingly the second hypothesis is, H2= There is a positive relationships between Trust and Reputation.…”