Managementliterature viewed reputation as strategic nonphysical resources to makeattention of stakeholder over competitors.
In the other hand, in manufacturingliterature it is found that the firms with a reputation for socialresponsibility are bigger in number compared to the rivals (Brown, 2014). Reputation also isdefined as people perception of an organization’s honesty and concern for itsstakeholders (Chang, 2013). In addition, reputation see how organization influencethe customer perceive and treatment from organization to stay using theirproducts or services (Bronn, 2007). In other hand, corporate reputation is organizationalattribute that reflect how the external stakeholder envision the business as abeneficial or not risky or evaluation of an organization from stakeholder overtime (Abratt & Kleyn, 2012). Every changes of reputation can influence theorganizations’ relationship with its stakeholder (Lange, Lee, & Dai,2011).
Keydriver of corporate reputation are corporate identity and corporate branding.Corporate identity pointed how organization choices the strategy (strategicchoices) and expresses it (corporate expression). In the other hand, corporate brandingreflects how expresses (corporate expression) and images identity oforganization (brand image). The component strategic choices are mission,vision, strategic intent, values, culture, strategy formulation and strategyimplementation. The component of corporate expression is visual identity, brandpromise, brand personality, and brand communication. Meanwhile, the componentof brand image are brand experience, brand relationship and brand communities (Abratt & Kleyn, 2012) Laksamana, Wong, Kingshott, andMuchtar (2013) found that reputation is competitive advantage for customer retentionbut does not impact for cross buying.
Retention is customer tendency to staywith supplier services in the next time, while cross buying is products andservices that bought again by customer from the provider as addition to theproducts or service s/he presently has. Loureiro and Kastenholz(2011) also met corporate reputation as a direct antecedent of perceivedquality, satisfaction and loyalty. Loyalty is intended of customer to buy again,to recommend to others, yet giving more for products and services of firm. Similarly,Cao, Myers, and Omer (2011) discovered that the company have high reputation will havehigh quality of financial report and have accurate forecast of management.
Corporatereputation creates loyalty through perceived trust and perceived value andcustomer satisfaction as mediating variable (Chang, 2013). Strong communication has important roles to build strongreputation. Corporate reputation variables are public relation, corporatesocial responsibility and corporate advertising (Johan & Noor, 2013) but environmental performance has negative relationshipwith reputation (Cho, Guidry, Hageman, &Patten, 2012). However, Reputation trouble can emerge in many shapes and be solved byeffective communication between organization and stakeholders with good behaviourfor revert to trust stakeholder.