Measuring Corporate Reputation Research Articles

The Concept of Corporate Reputation Measurement: The Case of Japanese Companies

Corporate reputation and its impact on different stakeholders have sparked an intense debate among practitioners and academics alike. Researchers have developed multiple dimensions to measure corporate reputation. Different models were proposed to measurethat construct. Considered a major intangible asset, corporate reputation may bring several advantages that ultimately enhance public perception and contribute to better corporate performance. However, sound research can only result from designing a reliable and sound corporate measurement instrument. Building on the measurement framework embodied in the RepTrakTM scorecard developed by the Reputation Institute, this study reports tests conducted to validate the measures empirically through a survey questionnaire of 157 controllers in Japanese companies. Data collected was analyzed using exploratory factor analysis (EFA), followed by structural equation modeling (SEM). The SEM documented that the goodness of fit values was within acceptable limits. Resultsvalidate the RepTrakTM scorecard as a tool for measuring the perceptions of corporate reputation by different stakeholders. The study also documents that effective leadership contributes to higher firm performance. Results are presented and limitations will be discussed.

Enhancing Business Decision Making through a New Corporate Reputation Measurement Model: Practical Application in a Supplier Selection Process

The importance of corporate reputation is a critical issue for business growth, sustainability, and success, as it represents a key intangible asset for the management of all companies. This business importance has its correlation in the academic and research field, where corporate reputation has a high number of publications in the literature. However, despite the importance of this concept, one of the great challenges of recent decades, and one that is still evident today, is how to measure corporate reputation quantitatively and how it affects sustainability. Following an in-depth exploration of the available literature, this manuscript aims to demonstrate the effective application of fuzzy models in enhancing decision-making processes within the realm of corporate reputation management for companies. To achieve this goal, this paper proposes a new corporate reputation measuring model based on the fuzzy 2-tuple linguistic and AHP (Analytic Hierarchy Process) methodologies. The proposed model promotes the computation of corporate reputation for companies based on three widely cited and universally recognized criteria outlined in the literature, drawing inspiration from a well-established framework in the field. This approach ensures a comprehensive and widely accepted foundation for evaluating corporate reputation: Capability, Benevolence, and Integrity and adding the Net Promote Score variable. To integrate sustainability into this equation, our model suggests the inclusion of variables related to sustainable practices in the measurement of corporate reputation. Recognizing the growing importance of sustainability in the public perception of companies, factors such as social responsibility, environmental management, and business ethics are recommended for consideration in the assessment of corporate reputation. The model proposed in this paper is tested and validated on a real business case, based on the selection of several companies selected for an empirical study in the selection of suppliers. For future research endeavors, the authors suggest expanding the model to encompass various decision-making processes. Additionally, they recommend exploring the integration of machine learning algorithms and data analysis techniques to identify patterns and provide recommendations for enhancing corporate reputation.

Global corporate reputation: a projective qualitative approach from a customer perspective

Purpose The purpose of this research is to extend the results of previous studies regarding corporate reputation scales and identify new and specific items relevant for studying global corporate reputation from a customer’s point of view. Design/methodology/approach This research was based on the qualitative projective “Album on Line” (AOL) technique. The authors used a sample of 12 French consumers distributed equally between affective and cognitive scenarios. An individual-difference multidimensional scaling approach (INDSCAL) was applied to display the overall semantic space among generated items. Findings The exploratory AOL approach generated 62 items related to both cognitive and affective orientations characterizing online and offline corporate reputation. The results uncovered six semantic clusters for each scenario. All in all, seven new items could be added in the process of building a new global corporate reputation measurement scale by adding: avant-garde, singularity, exclusivity, savings, return policy, freeness and speed. Research limitations/implications This research makes it possible to propose a new global corporate reputation measurement scale with sound psychometric properties. This scale will be adapted for click and mortars and pure players. This paper unlocks future perspectives by suggesting a causal model that integrates online corporate reputation and its main antecedents and consequences. Practical implications From a managerial perspective, this research offers insights to managers with the main orientations surrounding the components of global corporate reputation. Moreover, the AOL mappings delineate which quadrants the managers would like to be fitted into or avoid, and hence define more precisely which key elements should be stressed or discarded. Originality/value This research outlines AOL, an original qualitative projective technique that can be used to understand customers’ thoughts, which are stocked and collected as images. Moreover, this research intends to analyze the gathered data using both INDSCAL and fuzzy k-means cluster analysis to reduce conventional biases related to subjectivity.

The Effect and Measurement of Public Relations On Brand Equity

The present study examines public relations (PR), its impact on concepts such as corporate communications, and integrated marketing, and its role in creating, maintaining, and shaping brand equity. Also, the interaction between the company's reputation and brand equity is one of the other essential criteria examined in this study. After examining the techniques for measuring corporate reputation and brand equity, we used two models of Fombrun's Reputation Quotient and Aaker's Brand Equity to measure these two criteria. We have included GSM operators such as Turkcell, Vodafone, and Avea. Using questionnaires, end users and dealers (as the internal stakeholder) were asked about the brand equity and items related to the company's reputation. Interviews were conducted with 300 dealers as required by PR's "Stakeholder Theory" in-house staff study. We also surveyed 400 end users. Our research showed that public relations affect brand equity, and this effect varies based on stakeholders.

A REVIEW ON HOTEL REPUTATION: DIMENSIONS AND THEORIES

The last decades have observed an escalating growth of research on corporate reputation because of its importance as a source of competitive advantage. Service industries rely on corporate reputation to differentiate themselves from competitors, and to send different signals to multiple stakeholders about their performance. Nevertheless reputation in the hotel industry can be damaged easily because of the intangibility and the simultaneous production and consumption of provided services. The current article provides a review on the different dimensions used to measure corporate reputation, also it summarizes the different theories that is used to explain the reputation phenomenon. Finally, it spots the light on some concepts that are different from reputation, however used interchangeably by researchers in many contexts.

Definitions and measures of corporate reputation in accounting and management: commonalities, differences, and future research

This study reviews and compares the definitions and measurements of ‘corporate reputation’ used in 173 studies published in seven top-tier accounting and management journals between 1980 and 2020. Accounting scholars frequently fail to define ‘reputation,’ and if they do, definitions vary considerably between the accounting and management fields. We further find that measures of reputation do not fit well with its definition. The accounting literature often employs secondary financial measures, which poorly reflect stakeholders’ reputation assessments. We develop a conceptual framework to better classify prior research and identify appropriate measures of reputation that match the chosen definition. We also suggest a number of further research opportunities: Accounting scholars may focus more on (a) stakeholders’ subjective nonfinancial assessments; (b) the emotional appeal of companies and its relationship with competence and integrity assessments; (c) the role of stakeholders’ normative expectations and (d) explicitly consider a multi-stakeholder perspective, where corporations have multiple reputations rather than one.

Exploring corporate reputation variables to measure personal reputations

This explorative article qualitatively describes reputation variables that are applicable to bothcorporate and personal reputations: identity, image, branding, personality, behaviour, culture,ethics and storytelling. The research problem is concerned with the fact that personal reputationsare not studied with the same intensity as corporate reputations are. In the context of corporatecommunication, the question arises as to whether variables that measure corporate reputationcan be applied to the assessment of personal reputations. The article aims firstly to describe the concepts which define reputations, both corporate and personal, from a corporate communication perspective, and secondly to describe ways ofassessing corporate reputation, in order to suggest their application to personal reputation. Indoing so, the article attempts to ground corporate reputation within the meta-theoretical contextof corporate communication, according to the traditions of Van Riel (1995) and Van Riel andFombrun (2007). The article concludes that the Reputation Quotient (RQ) can be applied to measure personalreputations. This measurement instrument includes all the assessment criteria of the ReputationInstitute’s (2017) the RepTrak®, as well as the criteria of the Authentic Personal GovernanceModel, and the Personal Balanced Scorecard Framework proposed by Rampersad and Hussain(2014). The article does not attempt to elaborate upon a personality analysis of individuals, but isconcerned with the possible application of corporate reputation measurement variables tomeasure the reputation of individuals.

Factors affecting the corporate reputation of Bartın forestry organization

This study was carried out to identify and improve the corporate reputation of the forestry organization of the Bartın province (Bartın Forestry Enterprise Directorate, Ulus Forestry Enterprise Directorate, and Bartın Nature Conservation and National Parks Branch Directorate) in the eyes of external stakeholders. A survey form consisting of three parts was prepared. The survey forms were filled with 308 people from the external stakeholders of the forestry organization (sector enterprises, public institutions, NGOs, auction customers, city and village people) through face-to-face interviews and e-mails. The collected data were evaluated via descriptive statistics, correlation analysis, factor analysis, and the Kruskal-Wallis H test. The analysis of the answers of 55 statements/questions having a 5-point Likert scale and the evaluations performed indicated that the corporate reputation level of the Bartın forestry organization in the eyes of external stakeholders is at a "medium-high" level with a Likert score of 181.07. In addition to the six dimensions (emotional attraction, products and services, financial performance, vision and leadership, work environment, and social responsibility) developed by Fombrun (1996), “institutional relations” as a seventh dimension was used to measure corporate reputation. The factor analysis showed that the most important factors affecting the corporate reputation of the forestry organization, in order of importance are: 1) Institutional relations, 2) products and services, 3) vision and leadership, 4) financial performance, 5) social responsibility, 6) work environment and 7) emotional attraction. The results showed that 68.92% of the corporate reputation of the forestry organization of the Bartın province was explained by these seven factors. Besides, while the total corporate reputation differs significantly at the level of 99% according to the stakeholder group to which the participants belong, their activity area, relationship with the forestry organization, the number of employees, duty, and gender of the participant, it does not differ according to the age and education level of the participants. Finally, some improvement directions were identified to increase the corporate reputation of the forestry organization in the province of Bartın.

Study of Pertashop & BBM Satu Harga in Parigi Baru Village on Pertamina’s Reputation Measured by Customer-Based Brand Equity

Reputation is not only about corporate management, product, and their value. But it also includes the process of how to get a good reputation from the stakeholder perception. One of the ways is through Corporate Social Responsibility (CSR) Programs. This research objective tries to find and explain the significant effect of the public’s perception about CSR programs by Pertamina on corporate reputation measured by Customer-Based Brand Equity (CBBE). This research uses a quantitative approach with survey methods. The theory that underlies this research is stakeholder theory with the concept of Customer-Based brand equity. The result of this research shows the significant effect of local communities’ perception about corporate image and CSR programs is very high (99,40%) on local communities CBBE as the measurement of corporate reputation. These results indicate that the CSR program plays a vital role in determining the company's reputation in the local community's perception. Improving the CSR programs, CSR personnel, CSR executives are very affecting the corporate image and building a better CBBE and corporate reputation.

The digitalization-reputation link: a multiple case-study on Italian banking groups

PurposeThis paper aims to focus on the relation between digital transformation and banks’ reputation, as examined through the information disclosed by the five largest Italian banking groups’ efforts to extend and enhance their digital resources. Considering digitalization as a key strategy for managing reputation, which, in turn, can leverage financial and value performance management, the paper investigates whether and how digital activities might affect banks’ reputation. Therefore, this paper proposes the relationship between digitalization and reputation as a lever for performance management and for increasing efficiency.Design/methodology/approachThe authors use content analysis to generate a digital disclosure index, categorizing activities human, structural and relational. For banks’ reputations, the proxies are a measure of corporate reputation and a reputational risk index. Methodologically the study used multiple case studies, considered as particularly suitable to gain an in-depth understanding of the topic in the case of the five banks. A collection of secondary data and semi-structured interviews are included.FindingsOverall, the digitalization-reputation link shows that banks’ reputation is variously affected, not only by exposure to risk (including reputational risk) but also by strategic issues such as digitalization and the effectiveness of the corresponding communication. Consequently, banks should view digitalization as a key driver to be considered not in a stand-alone perspective, but in a combined approach.Research limitations/implicationsContinued research should include the Covid-19 implications. Additionally, it would be important to compare a larger number of banks, with different characteristics, also including variables indicating the corporate governance mechanisms.Practical implicationsThe analysis contributes to fostering scholars’ and practitioners’ management of the digital transformation challenge that is a current key-factor, capable of increasing banks’ value. It considers not only the drivers directly affecting monetary value but also the institutions’ social and relational value, as well as their reputation.Originality/valueThis paper extends prior research on the digitalization-reputation relation by investigating digital transformation through disclosure of activities in this area within the Italian banking sector. It allows to leverage the key-factors that can contribute to increasing banks’ value, considering not only the drivers directly affecting monetary value but also the institutions’ social and relational value, as well as their reputation.

Individual corporate reputation and perception of collective corporate reputation regarding stock market investments.

There are two different concepts of corporate reputation grounded in individual and collective perceptions, respectively. The aim of this study was to identify how these two ways of conceiving of corporate reputation affect investors’ decisions about whether or not to buy stock in a given company. As this problem tackles individual decision-making processes, we designed and applied an incentivised economic experiment based on vignette studies and focused on individual decisions of single investors. Subjects took part in an online game that imitates stock exchange conditions and that concerns corporate reputation and investing. We found that the individual propensity to invest is not directly based on an investor’s perception (rooted in historical share price and other objective metrics) of a firm’s reputation but rather on an investor’s subjective recognition of collective corporate reputation in the market. This suggests a need to rethink the popular measures of corporate reputation in the context of studies of stock market investor decisions.

Nexus between risk disclosure and corporate reputation: a longitudinal approach

PurposeThe study aims to explore the unexplored domain by examining the impact of risk disclosure on corporate reputation in an emerging economy, like India, characterized by huge information asymmetry and uncertainty.Design/methodology/approachIn total two measures of corporate reputation, i.e. market capitalization and excess of market value over book value have been deployed to measure reputation. Automated content analysis has been executed to measure the extent of total risk disclosure. The empirical analysis is premised on a sample of S&P BSE-100 index spanning over the period of ten years from 2009–2010 to 2018–2019; which eventually gets reduced to 58 nonfinancial firms. In order to unearth the risk–reputation relationship, a panel regression technique has been employed.FindingsThe main findings unmask that corporate risk disclosure has a positive bearing on corporate reputation. Substantiating legitimacy theory, its alternative measures like market capitalization and excess of market value over book value divulged to positively influence corporate reputation.Research limitations/implicationsThe study has certain limitations: since there is no standard method of measuring reputation, the results may vary subject to the changes in proxies of corporate reputation. The study also analyzed S&P BSE 100 index in India, and future research needs to approach a larger sample and in other emerging economies to fill up enough empirical evidence in this domain.Practical implicationsThe findings provide insight into the managers on making higher divulgence of material risk information for augmenting corporate reputation. In other words, it indirectly propels the firm to exhibit higher risk information for building reputational capital. From the investor's standpoint, they should admire such firms which dispel more risk information and should have positive outlook toward them, which in turn prompts them to disclose more risks.Originality/valueThis study is unique as it is the first longitudinal study examining the impact of risk disclosure on corporate reputation in Indian settings. It, thus, assists in furthering the risk disclosure literature where there is hardly any study that comprehensively looks into risk–reputation liaison among Indian nonfinancial companies.

Modelling the impact of corporate reputation on customers' behaviour

AbstractThe research aims to develop and to test a conceptual model to measure corporate reputation and assesses its impact on altering customers' normal behaviour. The findings add to the existing literature by empirically demonstrating that corporate reputation should be interpreted as a reflective construct that can be measured by the means of 25 items, grouped in seven major factors. The analysis validated a medium‐to‐high impact of reputation on customers' loyalty, word‐of‐mouth, and adoption of new product or service introductions, while the desire to pay a premium price was rejected. This study explains why executive managers should embrace corporate reputation as an imperative for the company's efforts to influence customers' behaviours and ultimately to outpace competitors. It also provides the executive management with an actionable tool to map out the corporate issues that need to be addressed and proved that companies can shorten the path to purchase by means of reputation, without a huge cost.

Adaptation of Reputation Tracker Corporate Reputation Measurement Tool (RepTrak) to Turkish: Validity and Reliability Study

Adaptation of Reputation Tracker Corporate Reputation Measurement Tool (RepTrak) to Turkish: Validity and Reliability Study

Measuring corporate reputation: a comprehensive model with enhanced objectivity

PurposeCorporate reputation (CR), the new buzz word has created many waves in the business world and thereby has become a topic of interest of many researchers. CR is often addressed as an intangible asset that brings with itself lots of advantages and benefits that may build the company and push it forward or may bring a company completely down. CR is a multidisciplinary concept generating parallel interpretations, and as a consequence, disagreements arise regarding its definition and its measurement techniques.Design/methodology/approachThis paper attempted to address this issue by bringing in more clarity to the concept and objectivity in its measurement. To address this issue a new comprehensive definition of CR is developed by reviewing the semi-centennial evolution of the construct. By bringing a critical analysis of the currently followed methods of measurement the paper has classified them into the five broad categories on the basis of the guiding definition, methodology and data sources, multiple stakeholders emphasised and the extent of objectivity inherent in the methodology. Establishing linkage between different concepts a model is developed for better understanding of the process of corporate reputation building.FindingsBased on the renewed understanding, a new method has been suggested for measuring corporate reputation from the perspective of multiple stakeholders.Originality/valueThis method is claimed to be superior as it is founded on a comprehensive meaning of the concept and designed to use easily available and accessible objective data.

Disentangling the reputation – performance paradox: Indian evidence

PurposeThe purpose of this study is to examine the existence of bi-directional relation between corporate reputation and financial performance in developing nation like India.Design/methodology/approachThe study conducts panel regression analysis on data collected from annual reports of Indian companies constituting BSE 500 index over a period of 10 years (1 April, 2002 to 31 March, 2012).FindingsThe results of the study point towards the existence of strong positive bi-directional liaison between reputation and performance in India, thereby confirming the presence of “vicious circle” in context of emerging economy like India. The results are in line with the findings of Roberts and Dowling (2002) and Eberl and Schwaiger (2005), who asserted existence of reputational “vicious circle” in developed nations.Research limitations/implicationsThe current study measures the performance of companies through accounting-based measures only. However, incorporating market-based measures could have provided better insights into the relationship between corporate reputation and financial performance. The period of study pertains to the pre-mandatory regime, wherein changes brought about by the enactment of companies act, 2013 is out of the scope of the present research.Practical implicationsIt is argued that in actual practice managers should realise the ingenuity of intangible resources and incorporate them into their strategical plans. It is high time that corporate managers of developing nations give impetus to reputation building activities and uphold a good reputation to improve their financial outcomes. Thus, where good financial performance seems indispensable to build a good reputation, at the same time having the resource (good reputation) is not sufficient, its nurturing, management and effective use is all the more crucial if it is to improve financial performance.Originality/valueThere exists hardly any study comprehensively examining the relationship between corporate reputation and financial performance in the Indian context. This is the first known study to empirically test the lag relation between corporate reputation and financial performance in the Indian market. The study is unique as it follows a different approach in measuring corporate reputation. It is the first longitudinal study to analyse the bi-directional reputation-performance liaison in an emerging economy like India.

Corporate reputation and retail bank selection: the moderating role of brand image

PurposeEven though scholars have proposed multiple dimensions to measure corporate reputation, the relationship between these dimensions and service provider selection has received a dearth of research. Moreover, the moderating role of brand image on this relationship has hardly been considered. The purpose of this paper is to fill these gaps in the literature.Design/methodology/approachThe study employed a quantitative approach, collecting data from 540 retail bank customers using surveys. Results were analyzed using structural equation modelling in AMOS.FindingsThe study found out that emotional engagement, corporate performance, customer centricism and service quality directly predicted customer selection of retail banks in Ghana. The results further indicated that brand image moderates the relationship between social and ethical engagement, which was not directly significant and bank selection.Practical implicationsThe findings of the study indicate that some of the dimensions of corporate reputation have a direct impact on bank selection by customers, and that brand image could also be used to improve social and ethical dimension of corporate reputation to ensure bank selection by retail customers. The study thus provides practical guidelines for managing corporate reputation to achieve retail bank selection in Ghana.Originality/valueThe paper provides support to some of the prior studies on corporate reputation in the retail banking sector. Thus, the study provides useful insights into how corporate reputation can be managed to ensure service provider selection by retail bank customers.

Even When No One Is Watching: The Moral Psychology of Corporate Reputation

The most popular measure of corporate reputation is the ranking of the most admired companies. But what exactly do we admire in people and firms of good reputation? This article is about the ethica...

REPUTASI PERUSAHAAN DALAM CARA PANDANG ONTOLOGI

Corporate reputation is a business buzzword that attracts the scholars and practisioners attention in the last decade. This paper discusses dan provides argumentation on the popularity of corporate reputatation by reviewing the publication of corporate reputation theme at JSTOR, highlights the dynamic aspect of corporate reputation through quoting the Forbes rank on corporate reputation during 2016-2018 and finally, I conclude based on ontology objective and subjective perspective that perception on corporate reputation is not aggregation of all stakeholder. The aggregation of perception on corporate reputation might be performed for a certain corporate stakeholder. This paper contributes on helping researchers in preparing corporate reputation measurement for more comprehensive research on corporate reputation.

THE IMPACT OF CORPORATE REPUTATION ON MARKET VALUE, EMPRICAL EVIDENCE FROM TURKEY

The high profitability expectation of the past is replaced with the advantage of sustainable competition in today’s business world. The boundaries of companies and their effects on society have expanded dramatically because of globalization and developments in information technologies, which has in turn raised society’s expectations of companies. For this reason, investors expect the companies to be sensitive to social issues besides having a high financial performance. The issue of corporate reputation has been discussed by many different disciplines through the years. Most of these studies consider corporate reputation as a strategic asset, and claim that it leads to sustainable competition by increasing financial performance. On the other hand, financial performance recognizes as a part of corporate reputation in some other studies. As a result, the concept of corporate reputation has now become essential for business.This study aims to examine whether the corporate reputation has significant effect on market value of companies. In literature, there are many studies about corporate reputation and financial performance relations. Many studies have demonstrated that there is a positive relationship between corporate reputation and financial performance. This has raised the problematic question of how reputation should be measured. Especially in developed countries, reputation indices are common indicators of reputation. But in Turkey, there are limited studies because of inadequacy of long-term database and measurement scales. In this study, corporate reputation is considered as an intangible asset, shaped by the perceptions of all internal and external stakeholders of corporations which can affect corporate value. To measure corporate reputation, a scale which is composed of 58 different criteria and formed by previous scales has been used. The full sample includes 99 listed companies and 1,188 firm years for 2006-2017. Panel data regression analysis has been used to test the relationship between corporate reputation and market value. The results are consistent with the past studies that highly reputable firms have high market value.