Organizational Competence and Firm-Specific Tobin's q: The Moderating Role of Corporate Reputation

Abstract

Corporate reputation activities have been shown to be a predictor of and a response to strategic organizational activities and outcomes. However, relatively little is known about the moderating role of corporate reputation in the relationship between organizational competencies and firm performance. Using a dynamic panel data model, this study examines how organizational competencies - employee value-added and technological competence - influence firm-specific Tobin's q, and how corporate reputation activities moderate this relationship. The results indicate that organizational competencies enhance firm-specific Tobin's q and that corporate reputation activities play a synergistic role, reinforcing the relationship between organizational competencies and firm performance. These findings contribute to both the resource-based view of the firm and corporate reputation literature by complementing and extending earlier research on the role of corporate reputation activi-ties on firm-specific performance.