A Stakeholders’ Perspective of Reputation Dimensions in Selective Service Organisations

Abstract

There is no doubt that a favourable corporate reputation is very beneficial, especially in terms of giving an organisation a competitive advantage and ensuring its profitability and sustainability. Several empirical studies have explored its significance in different kinds of organisations (products and services), as well as the factors that favourably contribute to the reputation of these organisations. It is evident from these studies that although corporate reputation is a must-have for every organisation, it is more significant in some organisations than others. In fact, it is wellestablished that corporate reputation is more significant for service organisations due to the intangible nature of services – a situation whereby stakeholders cannot feel, touch or see services prior to patronage thereby making corporate reputation the biggest indicator of the organisation’s competence to deliver high-quality service. However, despite the huge impact of reputation on service organisations, the factors that make these organisations reputable, otherwise called the dimensions of corporate reputation, remain under-researched. Adding to this problem, previous studies on the dimensions of corporate reputation have excluded developing countries like Nigeria. Hence, no documentation exists on what constitutes the reputation dimensions of any organisation operating within the Nigerian business context. The primary objective of this study was to address this gap in the literature by identifying the precise dimensions of reputation for service organisations from the perspective of four primary stakeholder groups, namely: customers, employees, regulators, and corporate communication executives. Two large service organisations operating within the Nigerian context, a bank and a mobile service provider, were selected as the focus in this study. The secondary objectives were to determine whether the same reputation dimensions apply to service organisations in general, or whether they differ according to the type of service organisation; as well as to identify and understand the impacts of a favourable reputation on each stakeholder of the selected organisations. The study followed a pragmatic paradigm, involving both qualitative and quantitative methods. In other words, the mixed method approach was used to address the research problem and questions. The research design followed the exploratory sequential mixed method in which information derived from the qualitative enquiry informed the quantitative enquiry. An extensive literature review was first conducted to explore the few studies that have investigated the iv reputations dimensions for service organisations. Face-to-face semi-structured interviews were then conducted with selected stakeholders of both organisations and this further facilitated an understanding and identification of reputation dimensions unique to the study context. Thereafter, a questionnaire was developed based on the dimensions identified from the interviews and literature. The questionnaire was pre-tested, and the refined questionnaire was readministered to a larger population. The questionnaire enabled the researcher to streamline and purify the reputation dimensions, and obtain results that did not only emanate from the researcher’s interpretation of interviewees’ responses, but results that were backed by a rigorous, objective scientific process and analysis. Key findings in this study include the identification of six reputation dimensions and 16 items describing the dimensions. These dimensions are Issue management, Service quality, Corporate communication, Branding, Social responsibility and Trustworthiness. Also, it emerged from this study that there is minimal variance in the reputation dimensions considered by stakeholders of a bank, and stakeholders of a mobile service provider. Where the difference lies is in the order of relevance of the dimensions in each organisation. Likewise, prestige and confidence, increased employee motivation, productivity and retention, higher customer patronage, reduced organisational scrutiny, and favourable brand supporting behaviours such as positive word of mouth and referrals, were identified as the major impacts of a favourable reputation in service organisations. The study contributes to theory by the identification of precise and reliable reputation dimensions for service organisations from the perspective of key stakeholders in a developing country context (Nigeria). It represents the first major investigation into reputation dimensions in the aforementioned country context. More so, the study makes significant scholarly contribution towards the development of a unique and valid instrument for measuring the reputation of service organisations where the impact of reputation is most significant. This study also contributes to practice as it provides service organisations and managers with precise dimensions that allows them to be cognisant of core areas to focus on in their reputation building programmes. The outcome of this study could thus serve as a strategic framework for achieving a favourable reputation that ensures the organisations’ continuous relevance and profitability.