The reputational benefits of instructing information: The first test of the revised model of reputation repair

Abstract

Situational Crisis Communication Theory (SCCT) prescribes crisis response strategies for organizations facing crisis. A meta-analysis of SCCT suggests using the prescribed responses has, at most, a small effect on reputation, while a few studies have shown that the base crisis responses (instructing information and adjusting information) may have a larger effect on reputation. This experiment compares the effects of SCCT’s prescribed responses, instructing information, and adjusting information on reputation in an experiment with 989 participants recruited from mTurk. It finds that instructing information has a very large effect on reputation, while adjusting information has a small but significant effect on reputation. In this sample, SCCT’s prescribed response strategies have no significant effect on reputation. The experiment proposes the revised model of reputation repair (REMREP) as a tool for understanding how crisis influences reputation. The model incorporates virtuousness and offensiveness, which demonstrates the importance of organizational virtuousness in handling a crisis. Implications for theory and practitioners are discussed.