Reputation and New Venture Performance in Online Markets: The Moderating Role of Market Crowding

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)1-17
Number of pages17
JournalJournal of Business Venturing
Volume34
Issue number6
Early online date2 Jul 2019
DOIs
Publication statusPublished - 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

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