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Reputation and new venture performance in online markets: The moderating role of market crowding

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  • Taeuscher, Karl

Abstract

Reputation represents an important driver of new venture performance. This article shows that the performance benefits of reputation are substantially contingent on ventures' market conditions. My study of 797,087 sales transactions by 5760 new ventures in 119 platform-mediated online markets provides strong evidence that market crowding attenuates the reputation–performance relationship. Ventures benefit 38% to 42% more from a favorable reputation when they compete in an uncrowded (versus crowded) market. By disentangling the underlying mechanisms of reputation, my study allows for more accurate predictions about why, when, and how ventures benefit from reputation.

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  • Taeuscher, Karl, 2019. "Reputation and new venture performance in online markets: The moderating role of market crowding," Journal of Business Venturing, Elsevier, vol. 34(6).
    • Handle: RePEc:eee:jbvent:v:34:y:2019:i:6:s0883902618301344
    DOI: 10.1016/j.jbusvent.2019.06.005
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