Reputation Building: Small Business Strategies for Successful Venture Development

Posted: 24 Nov 2009

See all articles by Albert I Goldberg

Albert I Goldberg

Technion-Israel Institute of Technology

Gilat Cohen

affiliation not provided to SSRN

Avi Fiegenbaum

Technion-Israel Institute of Technology - The William Davidson Faculty of Industrial Engineering & Management

Date Written: 2003

Abstract

A Strategic Reference Point (SRP) perspective is usedto delineate various reputation-building strategies.Following adiscussion of the role that a positive corporate reputation can play in a smallfirm's success, the three dimensions of the SRP matrix are outlined. These dimensions, which include conditions internal to the firm, conditionsexternal to the firm, and time, are the basis for four reputation-buildingstrategies.These strategies include the dynamic exploitation of existingassets, the development of core competencies, image management, and theformation of strategic alliances.A field study of three enterprises inthe Israeli software industry was undertaken in 1997 and 1998 to determine thedegree to which the companies made use of reputation-building strategies.Interviews were conducted with senior managers at each of the companies, anddata were obtained about the firm's activities and performance.Managersalso completed a survey about their company's strategies. According to the data, the firm that focused on the long-term development ofcore competencies remained relatively obscure, while another company achievedmoderate success by focusing on the short-term exploitation of existingassets.The third and most successful firm implemented a strategy thatstrengthened internal core competencies, created a positive corporate image,and broadened the firm's external network. Small businesses can build theirreputations most efficiently by taking a comprehensive approach that fullyintegrates all four strategies. (SAA)

Keywords: Firm image, Strategic Reference Point Theory, Market competition, Software industry, Firm strategies, Firm growth, Firm image, Core competencies, Firm performance, Stakeholders, Interfirm alliances

Suggested Citation

Goldberg, Albert I and Cohen, Gilat and Fiegenbaum, Avi, Reputation Building: Small Business Strategies for Successful Venture Development (2003). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1511034

Albert I Goldberg (Contact Author)

Technion-Israel Institute of Technology ( email )

Technion City
Haifa 32000, Haifa 32000
Israel

Gilat Cohen

affiliation not provided to SSRN

No Address Available

Avi Fiegenbaum

Technion-Israel Institute of Technology - The William Davidson Faculty of Industrial Engineering & Management ( email )

Haifa 32000
Israel

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