Abstract
Organizational reputation is recognized as a component of a firm’s competitive advantage. However, relatively little is known regarding stakeholder reactions to deviance from expected performance outcomes. We draw from the organizational stigma and impression management literatures and introduce the concept of reputation surprise (RS), defined as the extent of divergence between stakeholders’ expectations of an entity’s performance and the entity’s recent performance. Using a sample of 2,518 YouTube videos released by 48 established YouTube channels from 2006 to 2011, we hypothesize and find that negative RS (performance below stakeholder expectations) negatively influences prominence and perceived quality. Contrary to our expectations, positive RS (performance above stakeholder expectations) also has a negative effect on prominence and perceived quality. We also find that innovation rate positively moderates both relationships. Implications for theory and research are discussed.
Published Version
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