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Role of Resource Gap and Value Appropriation: Effect of Reputation Gap on Price Premium in Online Auctions

Author

Listed:
  • Tomasz Obloj

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Laurence Capron

    (INSEAD - Institut Européen d'administration des Affaires)

Abstract

In this study, we draw on the resource-based view of the firm and on value-based models of strategy to examine when firms appropriate value from their superior resources. We argue for the need to take into account the role of the resource gap between competitors rather than the absolute resource stock of the focal firm when examining the resource-performance relationship. In particular, we investigate whether the ability of a reputable seller to command a price premium is influenced by the reputation gap (i.e., the reputation differences between the focal seller and its closest competitor standardized by the reputation stock of both sellers). We test our hypotheses on 72 matched pairs of online transactions screened from more than 2,000 auctions of new mobile phones on the Polish Internet auction site Allegro. We find that the ability of a reputable seller to command a price premium (1) increases with the size of the reputation gap between the focal seller and its matched competitor, and (2) becomes increasingly smaller for each additional unit of the seller reputation gap. Copyright © 2010 John Wiley & Sons, Ltd.

Suggested Citation

  • Tomasz Obloj & Laurence Capron, 2011. "Role of Resource Gap and Value Appropriation: Effect of Reputation Gap on Price Premium in Online Auctions," Post-Print hal-00853790, HAL.
    • Handle: RePEc:hal:journl:hal-00853790
    DOI: 10.1002/smj.902
    as

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    Citations

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    Cited by:

    1. Dirk Crass & Franz Schwiebacher, 2017. "The importance of trademark protection for product differentiation and innovation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(2), pages 199-220, June.
    2. Anne Norheim-Hansen, 2018. "The Virtues of Green Strategies: Some Empirical Support from the Alliance Context," Journal of Business Ethics, Springer, vol. 151(4), pages 1161-1173, September.
    3. Anne Norheim-Hansen, 2015. "Are ‘Green Brides’ More Attractive? An Empirical Examination of How Prospective Partners’ Environmental Reputation Affects the Trust-Based Mechanism in Alliance Formation," Journal of Business Ethics, Springer, vol. 132(4), pages 813-830, December.
    4. Ramos, Célia & Casado-Molina, Ana & Peláez, José, 2017. "Measuring Air And Terrestrial Transport Company Reputation: Tourism Intangibles Expressed In The Digital Environment," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 5(4), pages 443-462.
    5. Olivier Chatain & Denisa Mindruta, 2017. "Estimating Value Creation from Revealed Preferences: Application to Value-based Strategies," Strategic Management Journal, Wiley Blackwell, vol. 38(10), pages 1964-1985, October.
    6. Joao Montez & Francisco Ruiz-Aliseda & Michael D. Ryall, 2018. "Competitive Intensity and Its Two-Sided Effect on the Boundaries of Firm Performance," Management Science, INFORMS, vol. 64(6), pages 2716-2733, June.
    7. David Eduardo Cavazos & Matthew A Rutherford & Karen Patterson, 2016. "Applying an Attribution-Based View of Reputation to Examine Firm Responses to Government Product Ratings," Corporate Reputation Review, Palgrave Macmillan, vol. 19(1), pages 59-76, February.
    8. Kaveh Moghaddam & Thomas Weber & Pouya Seifzadeh & Sara Azarpanah, 2021. "Internal Reputation of the Firm: CEO Retention and Firm Market Performance," Corporate Reputation Review, Palgrave Macmillan, vol. 24(4), pages 205-221, November.
    9. Giada Di Stefano & Andrew A. King & Gianmario Verona, 2014. "Kitchen confidential? Norms for the use of transferred knowledge in gourmet cuisine," Strategic Management Journal, Wiley Blackwell, vol. 35(11), pages 1645-1670, November.
    10. Nicole Stofberg & Flore Bridoux & Francesca Ciulli & Niccolò Pisani & Ans Kolk & Marlene Vock, 2021. "A Relational‐Models View to Explain Peer‐to‐Peer Sharing," Journal of Management Studies, Wiley Blackwell, vol. 58(4), pages 1033-1069, June.
    11. Lin, Yini & Wu, Lei-Yu, 2014. "Exploring the role of dynamic capabilities in firm performance under the resource-based view framework," Journal of Business Research, Elsevier, vol. 67(3), pages 407-413.

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