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Contingent effects of firm and employee reputations on professional advice adoption

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  • Eugene Soon Lee Kang

    (Nanyang Technological University)

  • Shun Yin Lam

    (Nanyang Technological University)

Abstract

Applying resource-based theory and signaling theory, we argue that firm and employee reputations affect consumer adoption of advice offered by professional service providers, and these effects are contingent on contextual variables. Our study on brokerage reports in Singapore supports our arguments. We show that reliance on firm (employee) reputation when adopting advice is higher (lower) if the evaluation of an entity is an initial rather than a repeated one. Also, reliance on employee reputation increases with stronger recommendation or when the entity has a business relationship with the advice-giving firm. These findings have implications for advice-giving firms and policy makers.

Suggested Citation

  • Eugene Soon Lee Kang & Shun Yin Lam, 2017. "Contingent effects of firm and employee reputations on professional advice adoption," Service Business, Springer;Pan-Pacific Business Association, vol. 11(2), pages 345-373, June.
  • Handle: RePEc:spr:svcbiz:v:11:y:2017:i:2:d:10.1007_s11628-016-0312-7
    DOI: 10.1007/s11628-016-0312-7
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    1. Juan Pineiro-Chousa & Marcos Vizcaíno-González & Samuel Ribeiro-Navarrete, 2019. "Using voting decisions to identify shocks in the financial services industry," Service Business, Springer;Pan-Pacific Business Association, vol. 13(2), pages 419-431, June.

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