How Does Corporate Reputation Affect Innovative Performance?

Yih-Chang Ou, Li-Chang Hsu
2013 International Business Research  
Corporate reputation has received considerable attention in the managerial academic literature. Whereas most research has focused on financial performance of corporate reputation, research on corporate reputation pointing to innovative performance and corporation internal mechanisms to influence innovative performance achieve has only recently emerged. Since little is known about how corporate reputation affects innovative performance, this study tests the separate moderating effects of human
more » ... pital and social capital on the relationship between corporate reputation and innovative performance empirically. The sample is derived from a panel dataset of eighty-six Taiwan high-tech firms, covering six high-tech industry sub-sectors for the period 2004-2012. This study not only finds that better human capital moderates between corporate reputation and innovative performance, but also yields novel insight into the higher social capital decreases the effect of corporate reputation on innovative performance. 47 This study has attempted to incorporate human and social capital into the research of corporate reputation, thereby increasing our understanding of how variations in innovation performance arise. More specifically, rather than focusing on corporate reputation, this work proposes and tests a framework that integrate, theoretical developments from the literatures of human and social capital (Sammarra & Biggiero, 2008) . The concept and methodology benefit from understanding the relative contribution and role of each factor. To this end, this study examines how the level of human capital in a high-tech firm moderates the linkage of corporate reputation-innovative performance. Drawing from technological management thinking that emphasizes the role of external social network relationships, this study also examines how social capital in the high-tech industry moderates the effect of corporate reputation. This study begins by discussing the theoretical background and our conceptual model, and then develops hypotheses. Following this, we present our empirical results from a survey of corporate reputation. This study concludes with a discussion of the theoretical and empirical implications, along with limitations and directions for future research. Theoretical Development Our conceptual model is shown in Figure 1 . In this section, we explain the constructs used in the conceptual model and develop hypotheses positing the relationship between corporate reputation, human capital, social capital, and innovative performance. www.ccsenet.org/ibr
doi:10.5539/ibr.v6n12p46 fatcat:pqobcmbh7nf7zhsvo5wsxbxp2e