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THE EFFECT OF REPUTATION ON THE DECISION TO JOINT VENTURE

✍ Scribed by MARC J. DOLLINGER; PEGGY A. GOLDEN; TODD SAXTON

Publisher
John Wiley and Sons
Year
1997
Tongue
English
Weight
128 KB
Volume
18
Category
Article
ISSN
0143-2095

No coin nor oath required. For personal study only.

✦ Synopsis

This paper focuses on the impact that reputation has on the decision to proceed with a strategic alliance. Employing reputation constructs adapted from the Fortune Corporate Reputation Survey, we manipulated a target firm's reputation in an experimental design. The subjects were placed in the role of CEO of the partner firm and asked whether they would engage in the alliance. Findings indicate that (1) reputation is a multidimensional construct, (2) the personal information-processing characteristics of the decision-maker mediate the reputation effect and may suppress the reputation information, (3) subjects may compensate weaker elements of reputation for stronger ones when making decisions, (4) product and management reputation are the most important factors, and ( 5) reputation is a factor affecting the decision regardless of whether the proposed target is a supplier or a competitor.

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