Reputational Capital Research Articles

End-to-end sustainability: trade-offs, consumers’ perceptions and decisions beyond B2C interfaces

PurposeThis study aims to examine the extended effects of corporate (ir)responsibilities in supply chains. More specifically, the authors compare the impact of social and environmental initiatives and failures in the reputational capital of supply chain partners. The authors investigate how (and if) companies’ decisions to prioritize different sustainability dimensions in their supplier selection processes (i.e. sustainability trade-offs) affect consumers’ perception of corporate image, corporate credibility-expertise, attitude towards the firm and word-of-mouth.Design/methodology/approachThe authors conducted three behavioural vignette-based experiments with 562 participants from the USA, relying on analysis of variance and t-tests analyses.FindingsResults show that consumers perceive social irresponsibility cases as more severe than environmental ones in suppliers’ operations, penalizing buyers’ corporate image, corporate credibility-expertise and word-of-mouth. Corporate image, attitude towards the firm and word-of-mouth also have significant differences between social and environmental trade-offs. Statistically significant differences were also found between scenarios that portrayed the discovery of an irresponsible action and ones that reinforced the previous irresponsible practice in companies’ suppliers.Practical implicationsWhen types of irresponsibility practices are presented, the discovery of child labour and modern slavery conditions in suppliers damage how consumers perceive the company on corporate image and their attitude towards the organization and how they will spread word-of-mouth, reinforcing the importance of considering sustainability issues when making supplier selection decisions.Originality/valueThe study contributes to the understanding of how companies are perceived by their consumers regarding irresponsible practices and their impact on firms’ supplier selection decisions. Furthermore, data suggests that consumers might hierarchize sustainability dimensions, perceiving social irresponsibility cases as more severe than environmental irresponsibility ones.

Library Service Brand and Mark: General and Special

The problem of forming the library image as an active social marketing tool in the context of globalization of the information space is becoming more urgent and relevant and requires new approaches, both in the theoretical and practical spheres of the library sector. In modern realities, libraries realize the importance of their own image as a socio-cultural phenomenon, echoing such a complex and multifaceted concept of “brand”. In the library space, the brand is used as a tool for updating the image and developing social marketing.The purpose of the article is to determine the features of the service mark as a key element of the library brand and the mechanisms of its civil-legal protection. The issues related to the use of the service mark as one of the elements of the library brand represent the scientific novelty and, in particular, specify the rules of its registration. The author notes that the term in question does not have a legal status, but it can be considered in relation to the institution of civil law close to it — means of individualization — a service mark (trademark). The article discusses the procedure for registering the service mark, as well as determines the stages of the libraryʼs brand policy.Despite the fact that the term “brand” has become widespread in scientific, professional and everyday life, it does not have a legal status, i. e. there is no legal definition in the legislation of the Russian Federation. Therefore, the necessary legal procedure aimed at the legal protection of the library brand as an element of the library branding system is the registration of a service mark — the designation that serves to individualize the work performed or services provided. Basing on the analysis of jurisprudence practice, the article determines the possibility of preferential use of the term “service mark” in the designation of library and information products and services.The analysis of registered service marks (trademarks) of libraries, relevant as of June 2021, demonstrates the awareness by libraries of the importance of their own brand. However, the professional library community is far from always aware of the advantages of using the service mark, which leads to the expiration of the exclusive right to it without its extension in the manner prescribed by law. Registration of the service mark contributes to strengthening the status of the library as an active marketing component of the information market and the formation of reputation capital. It can be considered as a specific incentive for the development of library branding.

How regulatory changes are driven by a need for control in reputational scandals: a case study in the German insurance industry

PurposeThis paper aims to contribute to the understanding of the mechanisms that evolve during reputational scandals and lead to changes in industry regulation. It explores the processes by which a demand for external industry regulation evolves, also addressing the consequences of firms’ competitive behaviors which lead to substantial misbehavior and the destruction of reputational capital. The authors are interested in whether and how regulatory activities – in the case analyzed here, changes in insurance regulation regarding sales commissions for insurance brokers – are used as a costly, external behavioral control mechanism (third-loop learning) to terminate a reputational scandal that cannot be stopped by internal controls at a firm level (first-loop and second-loop learning) anymore.Design/methodology/approachThe paper explores a real-life case in the German insurance industry that peaked in 2012 and has been well documented by broad media coverage, complemented by interviews with leading industry representatives. Using causal process tracing as a methodology, the authors study the factors in the case that led to an industry scandal. The authors further analyze why the insurance firms involved were not able to limit the scandal’s impact by internally controlling their behaviors, but had to call for external regulation, thus imposing costly restrictions on sales and contract processes. To identify the mechanisms underlying this result, theories from the fields of economics (game theory) and sociology (vicious cycle of bureaucracies), as well as organizational learning theory, are used.FindingsThe authors find that individual rationality does not suffice to prevent insurance firms from scandalous business practices, e.g. via implementing appropriate internal behavioral control measures within their organizations. If, as a result, misbehavior leads to reputational scandals, and the destruction of reputational capital spills over to the whole industry, a vicious cycle is set in motion which can be terminated by regulation as an externally enforced control mechanism.Research limitations/implicationsThis study is limited to the analysis of a single case study, combining published materials, e.g. broad media coverage, with interviews from representatives of the insurance industry. Nevertheless, the underlying mechanisms that have been identified can be used in other case studies as well.Practical implicationsThe paper shows that if firms want to avoid increasing regulation, they must implement strong reputational risk management (RRM) to counteract short-term profit pressure and to avoid restrictive regulation imposed on the industry as a whole. Furthermore, it sheds light on the relevance of spillover effects for RRM, as not only employee behavior within an organization might lead to the destruction of reputational capital but also that from other firms, e.g. from elsewhere within an industry.Originality/valueThe paper contributes by emphasizing a direct causal link between corporate scandals, loss of reputation and regulatory change within the insurance industry. Furthermore, the paper contributes by combining economic theories with organizational theories to understand real-life phenomena.

Formation and Assessment of the Investment and Reputation Capital of the Enterprise

The article assesses the influence of factors that form the reputation of an enterprise in the real sector of the economy, on the ability to attract investments and form investment capital. The study aims to identify the most important components of reputation capital that stimulate the inflow of investments for the implementation of projects that are significant for the development of the region. The author applies methods of multidimensional weighted scoring assessment of business reputation, construction of factor models, and identification of regression relationships between investment capital and factors that form business reputation, methods of pair correlations, and modelling. This study assesses the impact of factors on the level of investment capital and business reputation of 38 regionally significant organizations included in the list of residents of the Territory of Advanced Social and Economic Development (TASED) of the Far East and receiving tax incentives and administrative benefits. The scientific hypothesis that the investment capital of an enterprise as a key element of the territorial economic system is formed under the influence of a complex of factors of business reputation is subject to verification. The types of business reputation are identified for enterprises of regional significance. The author makes a conclusion that the inflow of investments and the accumulation of capital is facilitated by information transparency, participation of the enterprise in socio-cultural, educational events in the region, support of ethical and corporate principles. The research results can be used by the management companies of the territories of advanced development and the management of enterprises implementing national projects for the development of the regional economy.

Graduate employability in Europe: the role of human capital, institutional reputation and network ties in European graduate labour markets

ABSTRACT The link between higher education and employment is central to the understanding of social stratification and social mobility. We use three theories to analyse the importance of education and credentials in recruitment decisions in European graduate labour markets: human capital (HC), network capital (NC) and reputational capital (RC) theory. Latent class modelling was applied to data from over 5,000 European private-sector companies to allow segmentation. The results identify four groups of companies using different HC, NC and RC mixes in the recruitment process. A ‘complementary effect’ was found between these forms of capital at the time of recruitment. Company classes, however, vary in their emphasis on different types of capital according to their characteristics. The article further contributes to the literature by exploring how national political economies relate to segmentation patterns, and questioning some of the central tenets of the Varieties of Capitalism literature.

The theory of reputation economy as a new paradigm for the study of the region economic potential

The modern economy with all the variety of its structural elements, which every year is increasingly immersed in a hyper-connected digital space, new conditions of institutional functioning caused by both a change in technological patterns and innovative forms of thinking, needs to adjust the basic, established principles and models of economic growth. If earlier the material productive factors was played a key role, today their importance is to some extent offset by the increasing role of non-material factors of production, the most important of which should include reputation capital. The purpose of the article is to comprehend and theoretically support this scientific problem. The need to revise some principles of building models of economic dynamics and strategic management of the region based on the use and revision of structural, logical and evolutionary views on the construction of this process is substantiated in the article. Based on the results of systematization of the evolution of methodological approaches to assessing the effectiveness of regional socio-economic development of territories / regions, the position is substantiated, according to which, in modern economic conditions, the effectiveness of territorial development should be based on research and strengthening of reputation capital.

Review Pollution: Pedagogy for a Post-Truth Society

Consumer reviews on platforms like Amazon are summarized into star ratings, used to weight search results, and consulted by consumers to guide purchase decisions. They are emblematic of the interactive digital environment that has purportedly transferred power from marketers to ‘regular people,’ and yet they represent the infiltration of promotional concerns into online information, as has occurred in search and social media content. Consumers’ ratings and reviews do promotional work for brands—not just for products but the platforms that host reviews—that money can’t always buy. Gains in power by consumers are quickly met with new strategies of control by companies who depend on reviews for reputational capital. Focusing on ecommerce giant Amazon, this article examines the complexities of online reviews, where individual efforts to provide product feedback and help others make choices become transformed into an information commodity and promotional vehicle. It acknowledges the ambiguous nature of reviews due to the rise of industries and business practices that influence or fake reviews as a promotional strategy. In response are yet other business practices and platform policies aiming to provide better information to consumers, protect the image of platforms that host reviews, and punish ‘bad actors’ in competitive markets. The complexity in the production, regulation, and manipulation of product ratings and reviews illustrates how the high stakes of attention in digital spaces create fertile ground for disinformation, which only emphasizes to users that they inhabit a ‘post-truth’ reality online.

Does the Director Labor Market Settle Up? Examining Directorships for Fired CEOs

Prior research finds that dismissed CEOs suffer consequences in the executive labor market, such as fewer employment opportunities and reduced subsequent compensation. Such research suggests dismissed CEOs face stigma and ex post settling up in the executive labor market due to their poor executive ability. We extend such theory to argue that these processes extend to an alternative labor market: public company directorships. We argue, however, that the reduced odds of dismissed CEOs of gaining directorships is influenced by two considerations: 1) causal accounts for CEO dismissal related to violations of fiduciary duty and personal conduct and 2) the accumulated social, human, and reputational capital of the CEO. Following 280 dismissed CEOS, we find that CEOs dismissed with causal accounts suggesting fiduciary duty violations receive fewer future board appointments. For those without such stigmatizing causal accounts, we find evidence that social, human, and reputational capital enhance perceptions of the CEO’s ability, reducing the penalties faced in the director labor market. Our findings suggest that dismissed CEOs have future employment chances as board members, but those directorship opportunities are shaped by the reasons for their dismissal and the assets and skills they may bring to any future board as a director.

PENGARUH SOCIAL CAPITAL DAN HUMAN CAPITAL TERHADAP BUSINESS GROWTH PENGUSAHA PEREMPUAN DI JAKARTA DAN TANGERANG [EFFECT OF SOCIAL CAPITAL AND HUMAN CAPITAL ON BUSINESS GROWTH OF WOMEN ENTREPRENEURS IN JAKARTA AND TANGERANG

<p>The aim of this study is to examine the positive effect of social capital, human capital, reputational capital on business growth on women entrepreneurs in Jakarta dan Tangerang. Intangible assets are widely regarded as a key success factor for business growth in various countries. The growth of women's businesses in developing countries is still rare to find, but in recent years women have been seen to be more active in terms of entrepreneurship and business with women's ownership continues to grow to this day. This study uses a quantitative approach. The data collection technique in this study used an electronic questionnaire via Google Form, consisting of 31 indicators and the number of respondents was 201 respondents who are women and currently have businesses. The analytical method used in this research is SmartPLS 3.0, and in distributing the questionnaire, this study uses judgment sampling technique. The results of this study conclude that social capital has a positive effect on business growth, human capital has a positive effect on business growth, individual reputation capital has a negative effect on business growth, and organization reputational capital has a positive effect on business growth.</p>

Does reputational capital affect credit rating agencies?: empirical evidence from a natural experiment in China

The subprime mortgage crisis of 2007–2008 has led major economies to reform their credit rating regulations, and China is not an exception. This paper employs a difference-in-difference research design to investigate whether the reputational capital of credit rating agencies affects their rated bonds. The first market-oriented evaluation of the Chinese inter-bank bond market is chosen as the source of the exogenous reputational shock. Using the medium term notes rated by China Chengxin International Credit Rating as benchmarks, a causal relationship is identified revealing that the average yield spread at the issuance of medium term notes, as rated by China Lianhe Credit Rating, increases by between 0.23 and 0.33% due to its decreased reputational capital. This research provides favorable evidence for the recent reform measures that aim to increase the disciplinary power of reputational capital.

University Crises in Africa: A Situational Crisis Communication Theory Case Study of Daystar University, Kenya

While disruption of learning has become a common, almost a permanent feature, of universities in Africa, crisis response strategies in these organisations remain understudied. This article reports on a case study which focused on Daystar University (DU) in Kenya that was plunged into a crisis leading to its closure when students boycotted lectures to protest poor infrastructure and fee increment. The study used Coombs Situational Crisis Communication Theory (SCCT) to analyse crisis response strategies utilised at DU. The study found that the reputational threat was severe and that the university identified with the victim cluster in its crisis response strategies to protect its positive reputational history. Specifically, the SCCT deny response strategies were applied in DU's initial communication utilising the corresponding scapegoat tactic. But later, deal response strategies were applied although ineffectively. Thus, the research recommends that in future, DU should broaden its crisis response strategies in order to effectively reach all constituencies and protect its reputational capital.

System analysis of the impact of reputation capital upon activation of economic activity in the region

The search for the factors that launch the mechanisms of economic dynamics remain polemical and generate contradictions between various economic schools and directions. This is caused by the differences in fundamental approaches, as well as by conjunctural transformations that initiate new forms and instruments for activation of economic growth in modern reality. The debates and works dedicated to the contribution of nonmaterial factors to the dynamics of the key macroeconomic indicators of regional systems are particularly acute. In this regard, it is an essential methodological aspect in studying the regional development is the application of approaches that are based on the principles of reputation economics, which covers the reproduction processes through the prism of reputation capital. Considering the relevance of this problem, the author carries out comprehensive analysis of the impact of the reputation capital of the region (classified as intangible assets) upon the growth of business activity of the economic agents. Leaning on the methods of building the system of recursive equations, the key patterns of the impact of reputation upon activation of economic activity in the region are determined. Substantiation is given to the main vectors of implementation of government regional policy through the prism of the theory of reputation economy. The article offers an interpretation, which discloses the priorities and peculiarities of regional development in the era of the Fourth Industrial Revolution, as well as the specific features of strategic territorial management.

Certifications in the Academic Process Oriented to the Reputational Capital of Brands of Brazilian HEIs


 
 
 
 Considering the analysis of the academic process oriented to the reputational capital of the HEI brands, it arrive three main certifiable objects with impact on the reputation of universities: 'individual teaching advice' - applied to perform the main tasks of the process, the ' self-efficacy '- present in the evaluation of the work plan that guides the student's actions in the process and' disclosure '- which brings academia closer to society and generates a positive internal culture. The objective of this work is to identify how to carry out the certification of these objects. As a research methodology, three quasi-systematic reviews were applied, with successive refinements of articles collected on the CAPES Portal and the results were compiled. It was possible to identify that training followed or monitored by evaluations, and practical tests, also called challenges, are the forms of certification prevalent in this scope. The skills developed from the certifications considered were also listed, with the most mentioned being highlighted, such as the development of social skills, strengthening the commitment to the career and participation in the community of continuous learning; being observed that these favor the reputational capital of university brands.
 
 
 
 

Influence of the coronavirus epidemic on the development of Russian steel industry

The coronavirus infection pandemic, which began in 2020, became a serious challenge for the world economics. The steel sector as an important part of the modern industry, to the full extent suffered from all the problems and restrictions, resulted from COVID-19 virus spreading. The epidemic made the production and economic activity of Russian Federation steel industry enterprises significantly complicated: the current cost increased, the operation cost also increased. Besides, implementation of investment programs and organization of technical maintenance of import facilities became more complicated, since foreign specialists could not come quickly at the site and start working. Particular problems in the production area were related to the team organization of the process: as soon as a member of a team got ill by coronavirus, the whole team had to be suspended and directed to two-weeks quarantine. However, despite the significant problems, the actual situation in the domestic steel industry by results of 2020 turned out to be somewhat better than in other industries of Russia and in the world. This effect was contributed by existence of developed corporate culture of metallurgical companies, as well as beforehand digital transformation of business-processes and the transfer to application of the newest information and communication technologies. Besides, in steel industry there is a perspective of developing by-product production of means of individual protection, medical gases etc. New directions of business activity can be qualified as social responsibility of the business, contributing to the growth of a company reputation capital. Besides, it gives a chance to preserve a part of jobsites, released as a result of digitalization and automation of production processes.

The Formation of the University Reputation Capital under the Digital Transformation of the Environment

In modern conditions, the importance of digitalization for the university success in the education market is growing rapidly. Competitiveness, and ultimately survival of the educational institution in the information environment depends on how timely it will be included in this process. This article is devoted to considering the features of the digital transformation process and its impact on the university reputation. The development trends of distance education in Russia are analyzed, main missions of a modern university are examined in detail, and it is proved to maintain its competitiveness in the context of digitalization, the university must implement not only basic - educational and scientific missions, but also new, entrepreneurial and innovative ones. Only those universities that succeed in efficiently operating in all directions will be able to strengthen their positions in the market. The features of monitoring the reputation of the university are revealed, the target audiences, to which communication efforts should be directed, are considered. Particular attention is paid to methods of reputation analysis. One way to maintain a reputation is publicity. Publicity monitoring during the formation of a university’s reputation in the context of convergence and digitalization allows one to be more attentive to promotion tools.

Performance of Ghanaian women businesses community: the moderating role of social competence

PurposeThis paper aims to investigate the moderating dynamics of social competence in the relationship between intangible resources and the performance of women businesses from an emerging market context. Developed economy literature provides ample evidence of a positive relationship between intangible resources and the performance of women business ventures. Little is known of the complexity of this orthodoxy in developing markets such as Ghana. In particular, this paper investigates the moderating role of social competence in the relationship between intangible resources available to women entrepreneurs and performance.Design methodology approachAn exploratory sequential mixed method research design was used. First phase involved qualitative data collected through interviews, and the second phase was quantitative data collected from 264 participants. Content analysis and multiple regression analysis were used.FindingsSocial competence is important to the success of women businesses as it influences the outcome of entrepreneurial interactions and communications. Also, it positively moderated the relationship between organisational reputational capital (RC) and women business growth. On the flip side, it negatively moderated the relationship between human capital, social capital, individual RC and women business growth.Practical implicationsTo sustainably grow their businesses, women entrepreneurs must ascertain the right level of social competence needed. The utilization of social competence at higher rather than lower levels could mean more costs and more training for which the business may not have immediate use.Originality valueThis paper advocates the need to improve the content of entrepreneurial training packages to include the reinforcement of social competency skills in terms of relationship management as this may be the key to the facilitation of access to resources for innovation and growth.

Non-Financial Environmental Responsibility Information, Information Environment, and Credit Ratings: Evidence from South Korea

The purpose of this study was to analyze which dimensions of non-financial environmental responsibility information are more reflected in credit ratings. The non-financial environmental responsibility information used in this study was environmental strategy, environmental organization, environmental management, environmental performance, and stakeholder communication. Based on 1085 companies listed on the Korean capital market from 2013 to 2018, this study reports that the more companies engage in environmental responsibility activities, the better their credit ratings are. Specifically, it found that companies with higher environmental performance and stakeholder communication activities received better credit ratings, while higher environmental management and environmental strategy scores had a relatively weak influence. This indicates that among the corporate environmental responsibilities, the more activities requiring relatively little discretion from managers are performed, the more the reputation capital that is accumulated through corporate environmental responsibility (CER) activities, which leads to higher credit ratings. These associations were found to be strengthened in an information environment where there is a higher degree of information asymmetry and the lifecycle of a firm is at a maturity stage.

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.

EMPLOYER BRANDING IN FORMATION OF THE INTELLECTUAL CAPITAL OF THE TOUR OPERATOR: THE CASE STUDY OF UKRAINE

Abstract. The article defines that intellectual capital should be considered as one of the key factors of successful realization and provision of tourist services when the level of material stocks and raw materials resources reduce. The main feature of effective tour operator’s business is the formed intellectual potential, first of all, the staff, which has value-oriented professional knowledge, ambition, creativity, and the efficiency of each employee’s work is the key source of innovative changes for any enterprise. The accumulated knowledge and experience transform the staff into intellectual capital that is the resource of growth and development of tour operators. In such a situation, the administration of the tourist enterprises should use efficient tools for attracting professional employees, which are the basis of the intellectual capital of the company. However, the results of a survey among Ukrainian students who study in the field of tourism indicate a passive position of leading tourism operators’ directors in the process of finding and attracting tourism industry professionals to work for these companies. The directors of tour operators do not pay attention to HR brand formation that by the way generates the overall image and reputation of the tourist company. As a result, we have a significant staff turnover in companies that are in the top 10 leading employers in the tourism sector. It is an obstacle to form intellectual capital of organizations, that affects the performance. On other hand, well-formed employer brand enhances the company reputation, which is a proven mechanism for evaluating the partnership’s stability and business strategy. The right policy for the human resources formation creates a special professional intellect, and if tour operators use it, it transforms into intellectual capital for the firm and into intellectual property for the employee. The successful implementation of co-branding (a joint brand «employee company») enhances the image and reputation components that are intended to ensure stable positive financial results that is the most important condition for strategic company development, even in the conditions of fierce competitive struggle. Keywords: intellectual capital, tour operator, reputation capital, co-branding, HR-brand. JEL Classification D69, F15, H73, L14, R11 Formulas: 0; fig.: 4; tabl.: 1; bibl.: 10.

Board director reputation capital and financial performance of listed firms in Nigeria

This study examined the impact of board director reputation capital on financial performance of listed firms in Nigeria. The population of the study consists of all the listed non-financial firms in Nigeria. A sample of fifty (50) firms was selected and data were collected over the period 2007 to 2018. Descriptive statistics and system general method of moment estimation methods were used to undertake the data analysis. Findings reveal that board director reputational capital exerted a positive and significant impact on financial performance of the firms. Board size and firm size were negative on firm financial performance in the reference period. The study concludes that board reputational capital is a significant driver of corporate financial performance in Nigeria irrespective of the size of the board. Based on the empirical findings, it is recommended that there is need for regulators to design a framework to efficiently and effectively monitor the reputation of executive board directors and managers in firms. This will assist to check mate agency costs, demonstration of opportunistic behavior capable of destroying the firm value, There is need for firms to encourage adequate interlocking members who have diverse professional training, high social net worth and experience (experience hypothesis) to positively influence effective management and financial performance of listed firms in Nigeria.