Corporate Reputation and Performance : a Legitimacy Perspective

• Autorzy: Honggui G. Li , Zhongwei W. Chen , Guoxin X. Ma
• Języki publikacji: EN

Abstrakty

EN

Objective: The objective of this paper is to investigate the mediating role of innovation legitimacy between corporate reputation and enterprise growth.

Research Design & Methods: Four hypotheses were formulated and tested in to achieve the research objective. We collected data from 191 enterprises in 16 provinces in China. In total, 300 enterprises were selected to participate in this study. Descriptive analyses showed that the valid data covered a wide range of samples in terms of enterprise types and sizes, industries, market positions and years of establishment. The data was analysed by regression analysis.

Findings: The results of this research suggest that corporate reputation has significant positive relationship with enterprise growth. This positive relationship was found through all pathways tested. This means that brand image, social responsibility, innovation capability and staff quality are all important to enterprise growth. Similar effects were found for innovation legitimacy on enterprise growth, indicating that legitimacy is an important theoretical perspective in understanding how businesses could develop in various important aspects.

Implications & Recommendations: Legitimacy is an important theoretical framework in understanding the complex relationships between corporate reputation and enterprise growth, especially from the innovation perspective. Future research may look into these results in other contexts and further pursue the legitimacy perspective in understanding corporate reputation and enterprise growth.

Contribution & Value Added: This research contributes towards understanding the mediating effects of innovation legitimacy between corporate reputation and performance, especially in Chinese context. (original abstract)

Słowa kluczowe

EN

Enterprise growth; Innovations; Company image; Legitimacy

PL

Wzrost przedsiębiorstwa; Innowacje; Wizerunek przedsiębiorstwa; Prawomocność

• Czasopismo: Entrepreneurial Business and Economics Review
• Rocznik: 2016
• Tom: 4
• Numer: nr 3 Advancing Research in Entrepreneurship
• Strony: 181--193

Twórcy

autor

Honggui G. Li

• Anhui University of Finance & Economics, China

autor

Zhongwei W. Chen

• Anhui University of Finance & Economics, China

autor

Guoxin X. Ma

• Anhui Hull University Business School, UK

Bibliografia

• Akman, G., & Yilmaz, C. (2008). Innovative capability, innovation strategy and market orientation: an empirical analysis in Turkish software industry. International Journal of Innovation Management, 12(1), 69-111.
• Aldrich, H.E., & Fiol, C.M. (1994). Fools rush in? The institutional context of industry creation. Academy of Management Review, 19, 645-670.
• Petkova, A.P. (2016). Standing Out or Blending In? The Formation of New Firms' Legitimacy and Reputation under Different Levels of Market Uncertainty. Corporate Reputation Review, 19(1), 22-34.
• Petkova, A.P., Wadhwa, A., Yao, X., & Jain, S. (2014). Reputation and Decision under Ambiguity: A Study of U.S. Venture Capital Firms, Investments in the Emerging Clean Energy Sector. Academy of Management Journal, 57(2), 422-448.
• Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
• Basdeo, D.K., Smith, K.G., Grimm, C.M., Rindova, V.P., & Derfus, P.J. (2006). The impact of market actions on firm reputation. Strategic Management Journal, 27, 1205-1219.
• Cable, D.M., & Graham, M.E. (2000). The determinants of job seekers' reputation perceptions. Journal of Organizational Behavior, 21(8), 929-947.
• Carmeli, A., & Tishler, A. (2005). Perceived organizational reputation and organizational performance: An empirical investigation of industrial enterprises. Corporate Reputation Review, 8(1), 13-30.
• Cho, H.J., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability, and market value. Strategic Management Journal, 26(6), 555-575.
• Dacin, M.T., Oliver, C., & Roy, J. (2007). The legitimacy of strategic alliances: an institutional perspective. Strategic Management Journal, 28(2), 169-187.
• Deephouse, D.L. (2000). Media reputation as a strategic resource: An integration of mass communication and resource-based theories. Journal of Management, 26(6), 1091-1112.
• Dowling, J.E., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review, 18, 122-136.
• Eluinn, J.B. (2000). Outsourcing innovation: the new engine of growth. Sloan Management Review, 41(4), 13-28.
• Fang, L.H. (2005). Investment bank reputation and the price and quality of underwriting services'. The Journal of Finance, 60(6), 2729-2761.
• Flanagan, D.J., & O'Shaughnessy, K.C. (2005). The effect of layoffs on firm reputation. Journal of Management, 31(3), 445-463.
• Fombrun, C., & Shanley, M. (1990). What's in a name? Reputation building and corporate strategy. Academy Of Management Journal, 33(2), 233-258.
• Gibson, D., Gonzales, J.L., & Castanon, J. (2006). The importance of reputation and the role of public relations. Public Relations Quarterly, 51(3), 15-18.
• Grossman, G.M., & Helpman, E. (1993). Innovation and growth in the global economy. MIT press.
• Retrieved on April 30, 2016 from https://mitpress.mit.edu/books/innovation-and-growthglobal-economy
• Hall, R. (1993). A framework linking intangible resources and capabilities to sustainable competitive advantage. Strategic Management Journal, 14(8), 607-618.
• Jauch, L.R., Glueck, W.F., Osborn, R.N. (1978). Organizational Loyalty, Professional Commitment, and Academic Research Productivity. Academy of Management, 21(1), 84-92.
• Jepperson, R.L. (1991). Institutions, institutional effects, and institutionalism. In W.W. Powell, & P.J. DiMaggio (Eds.), The new institutionalism in organizational analysis: (pp. 143-163). Chicago: University of Chicago Press.
• Lee, C.Y. (2010). A theory of firm growth learning capability, knowledge threshold, and patterns of growth. Research Policy, 39(2), 278-289.
• Li, H.G., & Zhou, J. (2015). Organization reputation and enterprise growth: the mediating role of innovation legitimacy. Science & Technology Progress and Policy, 32(10), 84-87.
• Milgrom, P., & Roberts, J. (1982). Predation, reputation, and entry deterrence. Journal of Economic Theory, 27, 280-312.
• Gatzert, N. (2015). The impact of corporate reputation and reputation damaging events on financial performance: Empirical evidence from the literature. European Management Journal, 33(6), 485-499.
• Okeke, T.C., Ezeh, G.A., & Ugochukwu, N.O.A. (2015). Service Quality Dimensions and Customer Satisfaction with Online Services of Nigerian Banks. Journal of Internet Banking and Commerce, 20(3).
• Olson, M. (1965). The logic of collective action. Cambridge, MA: Harvard University Press.
• Parsons, T. (1960). Structure and process in modem societies. Glencoe, IL: Free Press.
• Pfeffer, J. (1981). Management as symbolic action: The creation and maintenance of organizational paradigms. In L.L. Cummings, & B.M. Staw (Eds.), Research in organizational behavior: an annual series of analytical essays and critical reviews (pp. 1-52). Amsterdam: Elsevier.
• Rindova, V.P., Williamson, I.O., Petkova, A.P., & Sever, J.M. (2005). Being good or being known: An empirical examination of the dimensions, antecedents, and consequences of organizational reputation. Academy of Management Journal, 48(6), 1033-1049.
• Scott, W.R., & Meyer, J.W. (1991). The organization of societal sectors. In W. W. Powell, & P.J. DiMaggio (Eds.), The new institutionalism in organizational analysis (pp. 108-140). Chicago: University of Chicago Press.
• Suchman, M.C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610.
• Turban, D.B., & Greening, D.W. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40, 658-672.
• Walker, K. (2010). A systematic review of the corporate reputation literature: definition, measurement, and theory. Corporate Reputation Review, 12(4), 357-387.
• Wangbin, H., & Yuli, Z. (2011). New Venture Capability of the Transformation from Entrepreneurial Orientation to the New Venture Performance: A Theory Model and Empirical Study in China. Nankai Business Rivew, 14(1), 83-95.
• Zucker, L.G. (1986). Production of trust: Institutional sources of economic structure, 1840-1920. Research in Organizational Behavior, 8, 53-111.

Identyfikatory

DOI

10.15678/EBER.2016.040313