Corporate reputation: formative constructs and implications for management

Abstract

Corporate reputation is frequently associated with organizational performance. However, the literature suggests that corporate communication and the stakeholder's identification with the organization are both relevant when it comes to explaining differences in corporate reputation evaluation. Considering these inputs, this study tests the relationship between corporate reputation, identification, corporate communication and organizational performance. The research occurred in two phases because it was necessary to develop or adapt the measurement scale for each one of the four constructs. All measures were perceptual in nature. The second phase of the research consisted of data gathering and analyses; and for that, the scales tested in the phase one were used. Data from 12 organizations were collected, resulting in a sample of 2,139 respondents or 1,025 employees and 1,114 customers. Structural equation modeling was used for analyzing the data. The results show strong effects of communication on organizational identification and reputation, as well as of identification on corporate reputation. The impact of reputation on organizational performance was also relevant. The study leads to the conclusion that communication and identification are critical factors in explaining the variability of reputation of organizations and, consequently, performance.

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