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Reputational risk taking and category non-conformity in new product launches: Insights from the Scotch whisky industry

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  • Lampel, Joseph
  • Ronen, Daniel
  • Banerjee, Aneesh

Abstract

This paper proposes a stock and flow model of reputational risk-taking to show that producers with higher reputation are more likely to take the risk of launching non-conforming products into their product line compared to producers with lower reputation. We also argue that product line differentiation relative to that of competitors will moderate potential reputational losses. We test these dynamics using unique panel data of the launch of single malt Scotch whiskies – With-Age-Statement (WAS) and No-Age-Statement (NAS) in the entire Scotch whisky industry from 2007 to 2015, a period that saw a rapid rise in the launch of NAS whiskies. Our study contributes to research that examines links between firm reputation and the launching of non-conforming products at the market category level. Our study also contributes to recent research that argues that category research should shift from emphasis on category stability, to the dynamics of category change.“Age is an issue of mind over matter. If you don’t mind, it doesn’t matter.”Mark Twain

Suggested Citation

  • Lampel, Joseph & Ronen, Daniel & Banerjee, Aneesh, 2025. "Reputational risk taking and category non-conformity in new product launches: Insights from the Scotch whisky industry," Journal of Business Research, Elsevier, vol. 199(C).
    • Handle: RePEc:eee:jbrese:v:199:y:2025:i:c:s0148296325003935
    DOI: 10.1016/j.jbusres.2025.115570
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