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REPUTATION SPILLOVER: HOW CHANGES IN CORPORATE REPUTATION AFFECT COMPETITIVE ACTION.

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    • Abstract:
      Normally firms choose strategies based on some inherently perceived competencies. This process is typically investigated as being internally deliberated and self-directed. Yet, how strategies are developed when events are outside a firm's control is less well understood. Our paper is a first step in theoretically examining the impact that a negative endogenous shock has on a rival's competitive behavior. We introduce a new theoretical construct, reputation spillover, to illustrate situations when a negative endogenous shock undergone by one firm is likely to spillover to other rival firms. Reputation spillover creates a set of opportunities or threats for firms under rivalry, which motivates firms to pursue different competitive reactions. [ABSTRACT FROM AUTHOR]
    • Abstract:
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