Advertisement

Corporate Reputation Review

, Volume 22, Issue 4, pp 144–158 | Cite as

Same Same but Different: the Relationship Between Organizational Reputation and Organizational Public Value

  • Timo MeynhardtEmail author
  • Pepe Strathoff
  • Andreas Fröhlich
  • Steven A. Brieger
Original Article
  • 68 Downloads

Abstract

Organizational public value and organizational reputation are different concepts stemming from independent research traditions. Nevertheless, the constructs share several similarities, which make a systematic comparison and investigation of their relationship a promising and necessary endeavor. In this paper, we compare the two constructs along seven dimensions, with special attention to the micro-level of individual psychology. Several similarities regarding strategic relevance, locus of control, measurement unit, process dynamics, and axiological nature exist. As we will see, the constructs differ significantly with respect to the basis of evaluation and their dominant logic. We draw on a recent micro-foundation of public value to elaborate on these differences and develop propositions about how the constructs are related. Public value applies a holistic basis of evaluation covering all basic values and collective frames of reference, while reputation is more adaptive. Moreover, public value follows a logic of contribution (to a collective), while reputation follows a logic of recognition (by a collective). The two constructs should not be taken as similar or used interchangeably. However, both fields can benefit from a joint theoretical basis and micro-foundation, as well as from connected research programs. Practitioners should consider both constructs in connection.

Keywords

Organizational reputation Public value Construct comparison Axiology Micro-foundation 

Notes

Acknowledgements

We would like to thank the anonymous reviewers and the editor for their helpful comments on earlier versions of this article.

References

  1. Aguinis, H., and A. Glavas. 2012. What we know and don’t know about corporate social responsibility a review and research agenda. Journal of Management 38 (4): 932–968.Google Scholar
  2. Bachmann, R., Ehrlich, G. and Ruzic, D. (2017), Firms and collective reputation: The Volkswagen emissions scandal as a case study. CEPR discussion paper no. 12504.Google Scholar
  3. Barnett, M.L., J.M. Jermier, and B.A. Lafferty. 2006. Corporate reputation: The definitional landscape. Corporate Reputation Review 9 (1): 26–38.Google Scholar
  4. Barney, J., and T. Felin. 2013. What are microfoundations? Academy of Management Perspectives 27 (2): 138–155.Google Scholar
  5. Barnett, M.L., and T.G. Pollock. 2012. Charting the landscape of corporate reputation research. In The Oxford handbook of corporate reputation, ed. T.G. Pollock and M.L. Barnett, 1–15. Oxford: Oxford University Press.Google Scholar
  6. Berndt, T., Bilolo, C. and Meynhardt, T. (2015) Investing in legitimacy: A performance analysis of public value stock portfolios. Paper presented at ACRN social and sustainable finance and impact investing conference; April, Oxford, UK.Google Scholar
  7. Benjamin, B.A., and J.M. Podolny. 1999. Status, quality, and social order in the California Wine industry. Administrative Science Quarterly 44 (3): 563–589.Google Scholar
  8. Bilolo, C. 2018. Legitimacy, public value, & capital allocation. London: Routledge.Google Scholar
  9. Boyd, B.K., D.D. Bergh, and D.J. Ketchen Jr. 2010. Reconsidering the reputation–performance relationship: A resource-based view. Journal of Management 36 (3): 588–609.Google Scholar
  10. Brooks, M.E., S. Highhouse, S.S. Russell, and D.C. Mohr. 2003. Familiarity, ambivalence, and firm reputation: Is corporate fame a double-edged sword? Journal of Applied Psychology 88 (5): 904–914.Google Scholar
  11. Bryson, J.M., B.C. Crosby, and L. Bloomberg. 2014. Public value governance: Moving beyond traditional public administration and the new public management. Public Administration Review 74 (4): 445–456.Google Scholar
  12. Bryson, J.M., B.C. Crosby, and L. Bloomberg. 2015. Public value and public administration. Washington, DC: Georgetown University Press.Google Scholar
  13. Cable, D.M., and M.E. Graham. 2000. The determinants of job seekers’ reputation perceptions. Journal of Organizational Behavior 21 (8): 929–947.Google Scholar
  14. Campbell, J.L. 2007. Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. The Academy of Management Review 32 (3): 946–967.Google Scholar
  15. Carroll, A.B. 1991. The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons 34 (4): 39–48.Google Scholar
  16. Carroll, A.B., and K.M. Shabana. 2010. The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews 12 (1): 85–105.Google Scholar
  17. Chun, R. 2005. Corporate reputation: Meaning and measurement. International Journal of Management Reviews 7 (2): 91–109.Google Scholar
  18. Davies, G., R. Chun, R.V. da Silva, and S. Roper. 2001. The personification metaphor as a measurement approach for corporate reputation. Corporate Reputation Review 4: 113–127.Google Scholar
  19. Dowling, G.R. 2001. Creating corporate reputations. Oxford: Oxford University Press.Google Scholar
  20. Drucker, P.F. 1973. Management: Tasks, responsibilities, practices. New York: Harper & Row.Google Scholar
  21. Drucker, P.F. 1992. The new society of organizations. Harvard Business Review 70 (5): 95–105.Google Scholar
  22. Ebeling, W., and R. Feistel. 1994. Chaos und Kosmos. Prinzipien der Evolution. Heidelberg: Spektrum Akademischer.Google Scholar
  23. Epstein, S. 1989. Values from the perspective of cognitive-experiential self-theory. In Social and moral values: Individual and societal perspectives, 8th ed, ed. N.E. Eisenberg, J.E. Reykowski, and E.E. Staub, 3–22. Hillsdale: Lawrence Erlbaum Associates.Google Scholar
  24. Epstein, S. 2003. Cognitive-experiential self-theory of personality. In Handbook of psychology: Handbook of psychology. Personality and social psychology, vol. 5, ed. T. Millon, M.L. Lerner, and I.B. Weiner, 159–184. New York: Wiley.Google Scholar
  25. Fischer, E., and R. Reuber. 2007. The, the bad, and the unfamiliar: The challenges of reputation formation facing new firms. Entrepreneurship Theory and Practice 31 (1): 53–75.Google Scholar
  26. Fiske, S.T. 1995. Social cognition. In Advanced social psychology, ed. A. Tesser, 149–193. New York: McGraw-Hill.Google Scholar
  27. Fiske, S.T., and S.E. Taylor. 1991. Social cognition, 2nd ed. New York: McGraw-Hill.Google Scholar
  28. Fombrun, C.J. 1996. Reputation: Realizing value from the corporate image. Boston: Harvard Business School Press.Google Scholar
  29. Fombrun, C. 2012. Corporate reputation: Definitions, antecedents, consequences. The Oxford handbook of corporate reputation, 94–113. Oxford: Oxford University Press.Google Scholar
  30. Fombrun, C.J., and M. Shanley. 1990. What’s in a name? Reputation building and corporate strategy. Academy of Management Journal 33 (2): 233–258.Google Scholar
  31. Fombrun, C.J., and C.B.M. van Riel. 1997. The reputational landscape. Corporate Reputation Review 1 (2): 5–13.Google Scholar
  32. Garriga, E., and D. Melé. 2004. Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics 53 (1–2): 51–71.Google Scholar
  33. Haken, H. 1977. Synergetics: Nonequilibrium phase transition and self-organization in physics, chemistry and biology. Berlin: Springer.Google Scholar
  34. Haken, H. 1984. Can synergetics be of use to management theory? Springer Series in Synergetics 26: 33–41.Google Scholar
  35. Heyde, J.E. 1926. Wert: eine philosophische Grundlegung. Erfurt: Stenger.Google Scholar
  36. Iwin, A.A. 1975. Grundlagen der Logik von Wertungen. Berlin: Akademie-Verlag.Google Scholar
  37. Kearney, C., and T. Meynhardt. 2016. Directing corporate entrepreneurship strategy in the public sector to public value: Antecedents, components, and outcomes. International Public Management Journal 19 (4): 543–572.Google Scholar
  38. Kegan, R. 1982. The evolving self: Problem and process in human development. Harvard: Harvard University Press.Google Scholar
  39. Kegan, R. 1995. In over our heads: The mental demands of modern life. Harvard: Harvard University Press.Google Scholar
  40. King, A.A., M.J. Lenox, and M. Barnett. 2002. Strategic responses to the reputation commons problem. In Organizations, policy, and the natural environment: Institutional and strategic perspectives, ed. A.J. Hoffman and M.J. Ventresca, 393–406. Stanford: Stanford University Press.Google Scholar
  41. Kohlberg, L. 1984. The psychology of moral development: The nature and validity of moral stages/Lawrence Kohlberg, essays on moral development, vol. 2. San Francisco: Harper & Row.Google Scholar
  42. Kraatz, M.S., and E.G. Love. 2006. Studying the dynamics of reputation: A framework for research on the reputational consequences of corporate actions. Research Methodology in Strategy and Management 3: 343–383.Google Scholar
  43. Lange, D., P.M. Lee, and Y. Dai. 2011. Organizational reputation: A review. Journal of Management 37 (1): 153–184.Google Scholar
  44. Love, E.G., and M.S. Kraatz. 2009. Character, conformity, or the bottom line? How and why downsizing affected corporate reputation. Academy of Management Journal 52 (2): 314–335.Google Scholar
  45. Meynhardt, T. 2008. Public Value – oder: was heißt Wertschöpfung zum Gemeinwohl? dms – der moderne staat 2: 73–91.Google Scholar
  46. Meynhardt, T. 2009. Public value inside: What is public value creation? International Journal of Public Administration 32 (3–4): 192–219.Google Scholar
  47. Meynhardt, T. 2015. Public Value: Turning a Conceptual Framework into a Scorecard. In Public value and public administration, ed. J.M. Bryson, B.C. Crosby, and L. Bloomberg, 147–169. Washington, DC: Georgetown University Press.Google Scholar
  48. Meynhardt, T. 2016. Public value: The contribution of organizations and companies to the common good. In Responsible entrepreneurship: Business and society: Bridging the gap, ed. Bertelsmann Stiftung, 25–35. Gütersloh: Bertelsmann Stiftung.Google Scholar
  49. Meynhardt, T. 2019. Public value: value creation in the eyes of society. In Public Value - Deepening, Enriching, and Broadening the Theory and Practice, ed. A. Lindgreen, N. Koenig-Lewis, M. Kitchener, J. Brewer, M. Moore, and T. Meynhardt, 5–22. London: Routledge.Google Scholar
  50. Meynhardt, T., and A. Bäro. 2019. Public value reporting: adding value to (non-)financial reporting. In Public Value - Deepening, Enriching, and Broadening the Theory and Practice, ed. A. Lindgreen, N. Koenig-Lewis, M. Kitchener, J. Brewer, M. Moore, and T. Meynhardt, 87–108. London: Routledge.Google Scholar
  51. Meynhardt, T., and S. Bartholomes. 2011. (De)composing public value: in search of basic dimensions and common ground. International Public Management Journal 14 (3): 284–308.Google Scholar
  52. Meynhardt, T., S.A. Brieger, P. Strathoff, S. Anderer, A. Bäro, C. Hermann, and P. Gomez. 2017. Public value performance: What does it mean to create value in the public sector? In Public sector management in a globalized world, ed. R.C. Andeßner, D. Greiling, and R. Vogel, 135–160. Wiesbaden: Springer Fachmedien.Google Scholar
  53. Meynhardt, T., S.A. Brieger, and C. Hermann. 2018a. Organizational public value and employee life satisfaction: the mediating roles of work engagement and organizational citizenship behavior. The International Journal of Human Resource Management.  https://doi.org/10.1080/09585192.2017.1416653.CrossRefGoogle Scholar
  54. Meynhardt, T., J.D. Chandler, and P. Strathoff. 2016. Systemic principles of value co-creation: Synergetics of value and service ecosystems. Journal of Business Research 69 (8): 2981–2989.Google Scholar
  55. Meynhardt, T., and A. Fröhlich. 2019. More value awareness for more (public) value: Recognizing how and for who value truly is created. In Public Value - Deepening, Enriching, and Broadening the Theory and Practice, ed. A. Lindgreen, N. Koenig-Lewis, M. Kitchener, J. Brewer, M. Moore, and T. Meynhardt, 23–39. London: Routledge.Google Scholar
  56. Meynhardt, T., and P. Gomez. 2014. Public value: Gesellschaftliche Wertschöpfung als unternehmerische Pflicht. In Managementperspektiven für die Zivilgesellschaft des 21. Jahrhunderts, ed. C. von Müller and C.-P. Zinth, 17–26. Wiesbaden: Springer Fachmedien.Google Scholar
  57. Meynhardt, T., and P. Gomez. 2016. Building blocks for alternative four-dimensional pyramids of corporate social responsibilities. Business & Society. 58: 404–438.  https://doi.org/10.1177/0007650316650444.CrossRefGoogle Scholar
  58. Meynhardt, T., P. Neumann, and F. Christandl. 2018b. Sinn für das Gemeinwohl. Harvard Business Manager 3: 66–71.Google Scholar
  59. Meynhardt, T., P. Strathoff, L. Beringer, and S. Bernard. 2015. FC Bayern Munich: Creating public value between local embeddedness and global growth. Cranfield: The Case Centre.Google Scholar
  60. Meynhardt, T., and C. von Müller. 2013. Wir wollen Werte schaffen für die Gesellschaft: Der Public Value im Spannungsfeld zwischen Aktienwert und Gemeinwohl Eine Fallstudie am Beispiel der Deutsche Börse AG. ZögU: Zeitschrift für öffentliche und gemeinwirtschaftliche Unternehmen 36 (2–3): 119–149.Google Scholar
  61. Moore, M.H. 1995. Creating public value: Strategic management in government. Cambridge: Harvard University Press.Google Scholar
  62. Pfarrer, M.D., T.G. Pollock, and V.P. Rindova. 2010. A tale of two assets: The effects of firm reputation and celebrity on earnings surprises and investors’ reactions. Academy of Management Journal 53 (5): 1131–1152.Google Scholar
  63. Podnar, K., and U. Golob. 2017. The quest for the corporate reputation definition: Lessons from the interconnection model of identity, image, and reputation. Corporate Reputation Review 20 (3–4): 186–192.Google Scholar
  64. Rescher, N. 1969. Introduction to value theory. Englewood Cliffs: Prentice-Hall.Google Scholar
  65. Rhee, M., and M.E. Valdez. 2009. Contextual factors surrounding reputation damage with potential implications for reputation repair. The Academy of Management Review 34 (1): 146–168.Google Scholar
  66. Rindova, V.P., I.O. Williamson, A.P. Petkova, and J.M. Sever. 2005. Being good or being known: An empirical examination of the dimensions, antecedents, and consequences of organizational reputation. The Academy of Management Journal 48 (8): 1033–1049.Google Scholar
  67. Roberts, P.W., and G.R. Dowling. 2002. Corporate reputation and sustained superior financial performance. Strategic Management Journal 23 (12): 1077–1093.Google Scholar
  68. Rotter, J. 1954. Social learning and clinical psychology. New York: Prentice-Hall.Google Scholar
  69. Rotter, J. 1966. Generalized expectancies of internal versus external control of reinforcements. Psychological Monographs 80: 1–28.Google Scholar
  70. Schutz, A., and T. Luckmann. 1973. The structures of the life-world. Evanston: Northwestern University Press.Google Scholar
  71. Schutz, A. 1974. Der sinnhafte Aufbau der sozialen Welt: Eine Einleitung in die verstehende Soziologie. Frankfurt am Main: Suhrkamp.Google Scholar
  72. Schwartz, M.S., and A.B. Carroll. 2008. Integrating and unifying competing and complementary frameworks: The search for a common core in the business and society field. Business & Society 47 (2): 148–186.Google Scholar
  73. Shamsie, J. 2003. The context of dominance: An industry-driven framework for exploiting reputation. Strategic Management Journal 24 (3): 199–215.Google Scholar
  74. Shapiro, C. 1983. Premiums for high quality products as returns to reputations. The Quarterly Journal of Economics 98 (4): 659–679.Google Scholar
  75. Strathoff, P. 2015. The VBA model and public value: Filling the value gap. Business & Professional Ethics Journal 33 (4): 297–319.Google Scholar
  76. Turban, D.B., C.-M. Lau, H.-Y. Ngo, I.H.S. Chow, and S.X. Si. 2001. Organizational attractiveness of firms in the People’s Republic of China: A person-organization fit perspective. Journal of Applied Psychology 86 (2): 194–206.Google Scholar
  77. Walker, K. 2010. A systematic review of the corporate reputation literature: Definition, measurement, and theory. Corporate Reputation Review 12 (4): 357–387.Google Scholar
  78. Zajonc, R.B. 1968. Attitudinal effects of mere exposure. Journal of Personality and Social Psychology, Monograph Supplement 9 (2): 1–27.Google Scholar

Copyright information

© Reputation Institute and Springer Nature Limited 2019

Authors and Affiliations

  • Timo Meynhardt
    • 1
    • 2
    Email author
  • Pepe Strathoff
    • 2
  • Andreas Fröhlich
    • 1
  • Steven A. Brieger
    • 2
    • 3
  1. 1.Dr. Arend Oetker Chair of Business Psychology and LeadershipHHL Leipzig Graduate School of ManagementLeipzigGermany
  2. 2.Center for Leadership and Values in SocietyUniversity of St. GallenSt. GallenSwitzerland
  3. 3.University of Sussex Business SchoolUniversity of SussexBrightonUnited Kingdom

Personalised recommendations