Indexed on: 14 Jul '06Published on: 14 Jul '06Published in: Corporate Reputation Review
The resource-based view suggests that reputations can serve as a source of sustainable competitive advantage, but only if those reputations are durable. This research examines that durability. The authors conduct a 11-year longitudinal study using ordinal time series to examine the durability and dynamics of reputational status for firms within 33 industries. Results indicate that favorable reputational status is not significantly durable for most firms. Instead, reputational status loss from high ranks is often quite precipitous. However, consistent with the resource-based view, a few firms are able to maintain their reputational status over time. Moreover, the dynamics of reputational status show significant asymmetry between building and eroding in that reputation building is more gradual than reputation erosion. Additional analysis of individual reputation attributes shows that some attributes are more stable than others, emphasizing reputation's multidimensionality.