Mechanisms of impact of reputational management on business results

Abstract

In the article, the mechanisms of the impact of reputation management are systematized and combined into three main groups. Firstly, the effect of reputation impact on the company’s resources. Secondly, these are market effects associated with the action of the «supply-demand» mechanism and the change in the microeconomic model of the enterprise’s functioning. Thirdly, these are effects of increasing the sustainability of business development in both normal and crisis conditions, due to a decrease in the turbulence of the operating environment and the establishment of longterm «contracts» with stakeholders. The author has explored and developed a tool for evaluating the strategic effectiveness of managing the reputation of an enterprise based on the concept of reputational rent. The author’s definition of the concept of «reputational rent» is given: as a theoretical and methodological basis for the strategic effectiveness of the reputation management of the enterprise and a particular manifestation of the Sumperian rent — excess profits (non-normative high profits) from the «innovative monopoly» to a unique resource; such resource is an antifragil reputation — a radical marketing / organizational innovation.

Authors and Affiliations

Olena Derevianko

Keywords

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  • EP ID EP352408
  • DOI -
  • Views 118
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How To Cite

Olena Derevianko (2018). Mechanisms of impact of reputational management on business results. Стратегія економічного розвитку України, 42(), 5-18. https://europub.co.uk/articles/-A-352408