Corporate reputation: A discussion on construct definition and measurement and its relation to performance

Abstract

Abstract

Purpose – The purpose of this paper is to discuss the different approaches to the corporate reputation

construct, in order to identify a comprehensive definition that can be used for measurement purposes, gaps

identified by previous literature identified.

Design/methodology/approach – This is a theoretical essay. The authors analyzed studies that involve

the relationship between corporate reputation and organizational performance, and the attributes of national

and international corporate reputation ratings.

Findings – The authors identified a more comprehensive definition for the reputation construct, and

indicated courses for the construct’s measurement, by considering: the judgment by the stakeholders

(internal, suppliers, clients and the financial market); periodical evaluations under different organizational

perspectives; attention to theoretical assumptions, among other aspects.

Research limitations/implications – The study is a theoretical paper that presents that the research field

has many definitions that cannot be used interchangeably. It indicated how the reputation construct should

be operationalized for measurement purposes. This study presented a reflection on the relationship between

corporate reputation and performance, showing that it is not a settled topic in the academy.

Practical implications – The study advances the understanding of the reputation construct measurement,

considering the adopted definition and the discussion of the attributes of the main ratings on corporate

reputation. The adoption of a measurement method that takes into account the definition used in this study and

the features of the methodologies discussed will improve the corporate reputation assessment.

Social implications – Literature indicates that a good corporate reputation can affect organizational

performance and the inverse relationship is also true. As a social implication, it is extremely relevant to

improve the understanding the definition and measurement methods of this construct.

Originality/value – This study discusses one of the most important intangible resources for organizations,

contributing to the understanding of the difference between the market value and the book value of public

companies. Besides it should be considered that there is one lack of a definition directly related to the

measurement of the reputation construct in the literature, a gap in which this study contributes.

Keywords Performance, Corporate reputation, Intangible resources