Abstract
Reputation represents an important driver of new venture performance. This article shows that the performance benefits of reputation are substantially contingent on ventures’ market conditions. My study of 797,087 sales transactions by 5,760 new ventures in 119 platform-mediated online markets provides strong evidence that market crowding attenuates the reputation–performance relationship. Ventures benefit 38% to 42% more from a favorable reputation when they compete in an uncrowded (versus crowded) market. By disentangling the underlying mechanisms of reputation, my study allows for more accurate predictions about why, when, and how ventures benefit from reputation.
Original language | English |
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Pages (from-to) | 1-17 |
Number of pages | 17 |
Journal | Journal of Business Venturing |
Volume | 34 |
Issue number | 6 |
Early online date | 2 Jul 2019 |
DOIs | |
Publication status | Published - 2 Jul 2019 |
Keywords
- New venture performance
- Reputation
- Signaling theory
- Resource-based view
- Online markets
- Platform entrepreneurship
Research Beacons, Institutes and Platforms
- Manchester Institute of Innovation Research