The complex link of city reputation and city performance. Results for fsQCA analysis

Abstract

Studies suggest that good corporate reputation benefits firm outcomes. Our research tests whether these benefits also hold for city reputation. We propose that the effect of city reputation on city performance does not depend on this individual variable, but on specific configurations of city reputation with other city characteristics. We use a sample of 72 Spanish cities to analyze the effect of these configurations on city economic activities, employment, and migration rates. Results for fsQCA show that city reputation has complex links with performance, so that specific combinations of city reputation with other city characteristics are sufficient conditions for city performance. Moreover, the combinations differ according to the measure of performance considered. Results also show that the influence of city reputation on performance is marked by causal asymmetry. These results are of interest for local authorities, as they indicate when efforts to consolidate city reputation are relevant for city performance.