Abstract
This study examines how reputation predicts variability in firm political responses to government product ratings. Longitudinal examination of nine automobile manufacturers during National Highway Traffic and Safety Administration crash tests reveals several important findings regarding how reputation is associated with firm responses to product ratings. In particular, high reputation firms implement fewer political responses to ratings declines of high-reputation products while implementing more political responses to ratings declines of low-reputation products. Results suggest that reputation at both the product and firm-levels interact to predict how firms respond to reputation-damaging events such as declining product-safety ratings.
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