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Corporate reputation as strategic competitive advantage of manufacturing and service-based firms: multi-industry case study

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  • Alan D. Smith
  • William T. Rupp
  • Darlene Motley

Abstract

The present study focuses on corporate reputation from a resource-based view (RBV) theoretical viewpoint as an intangible strategic asset. Although empirical evidence is very sparse on the subject and relatively immature at this stage of development, best business practices dictate that a favourable reputation is positively associated with future financial performance. However, having a sterling company reputation is not only beneficial to a firm's strategic position in a tight economic marketplace, but it may contribute to a firm's sustainable competitive advantage. Dominion, Dick's Sporting Goods, and Fifth Third Bank provided excellent examples of how a manufacturing and service companies' reputation grants them competitive advantage over rival firms. As with any strategic asset, such as product and service reputation, the present case study provided evidence that there is a positive association with firm performance and the proper management of this asset. A properly nurtured and maintained reputation is valuable, typically rare, and imperfectly imitable, as defined by RBV theoretical assumptions.

Suggested Citation

  • Alan D. Smith & William T. Rupp & Darlene Motley, 2013. "Corporate reputation as strategic competitive advantage of manufacturing and service-based firms: multi-industry case study," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 14(2), pages 131-156.
    • Handle: RePEc:ids:ijsoma:v:14:y:2013:i:2:p:131-156
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    Citations

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    Cited by:

    1. Romel C. Neminõ & Gloria P. Gempes, 2018. "The moderating effect of intellectual capital on the relationship between corporate reputation and knowledge sharing of commercial banks," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 4(3), pages 145-155.
    2. Pedro Teixeira & Arnaldo Coelho & Pedro Fontoura & José Carlos Sá & Francisco J. G. Silva & Gilberto Santos & Luis P. Ferreira, 2022. "Combining lean and green practices to achieve a superior performance: The contribution for a sustainable development and competitiveness—An empirical study on the Portuguese context," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 887-903, July.
    3. Aida Maria Ismail & Izrul Haida Mohd Latiff, 2019. "Board Diversity and Corporate Sustainability Practices: Evidence on Environmental, Social and Governance (ESG) Reporting," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 31-50, May.
    4. Oyindamola Abiola Ajayi & Tsietsi Mmutle & Mpho Chaka, 2022. "A Stakeholders’ Perspective of Reputation Dimensions for Service Organisations: Evidence from a Developing Country Context," Corporate Reputation Review, Palgrave Macmillan, vol. 25(4), pages 287-299, November.

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