IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v82y2014icp167-176.html
   My bibliography  Save this article

How relational capital mediates the effect of corporate reputation on competitive advantage: Evidence from Taiwan high-tech industry

Author

Listed:
  • Wang, Chao-Hung

Abstract

Although the effects of corporate reputation on competitive advantage are well documented, the mechanisms that explain those effects remain unclear. We develop and test a theoretical model to investigate how relational capital mediates the impact of corporate reputation on competitive advantage. The hypotheses were tested using a sample of Taiwanese high-tech firms during the period of 2002–2011. Results from hierarchical regression analyses support the contention that corporate reputation positively affects relational capital, which then positively affects competitive advantage. But surprisingly, we do not find support for the direct effect of corporate reputation on competitive advantage, and we instead find that relational capital is a complete mediator.

Suggested Citation

  • Wang, Chao-Hung, 2014. "How relational capital mediates the effect of corporate reputation on competitive advantage: Evidence from Taiwan high-tech industry," Technological Forecasting and Social Change, Elsevier, vol. 82(C), pages 167-176.
    • Handle: RePEc:eee:tefoso:v:82:y:2014:i:c:p:167-176
    DOI: 10.1016/j.techfore.2013.06.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162513001352
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2013.06.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. M. Bensaou & Erin Anderson, 1999. "Buyer-Supplier Relations in Industrial Markets: When Do Buyers Risk Making Idiosyncratic Investments?," Organization Science, INFORMS, vol. 10(4), pages 460-481, August.
    2. Marco Corsino & Giuseppe Espa & Rocco Micciolo, 2011. "R&D, firm size and incremental product innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(5), pages 423-443.
    3. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    4. Wagner, Stephan M., 2006. "A firm's responses to deficient suppliers and competitive advantage," Journal of Business Research, Elsevier, vol. 59(6), pages 686-695, June.
    5. Seung Ho Park & Yadong Luo, 2001. "Guanxi and organizational dynamics: organizational networking in Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 455-477, May.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. José Luis Sánchez & Ladislao Sotorrío, 2007. "The Creation of Value Through Corporate Reputation," Journal of Business Ethics, Springer, vol. 76(3), pages 335-346, December.
    8. Zhiang (John) Lin & Mike W. Peng & Haibin Yang & Sunny Li Sun, 2009. "How do networks and learning drive M&As? An institutional comparison between China and the United States," Strategic Management Journal, Wiley Blackwell, vol. 30(10), pages 1113-1132, October.
    9. Thomas Brenner & Tom Broekel, 2011. "Methodological Issues in Measuring Innovation Performance of Spatial Units," Industry and Innovation, Taylor & Francis Journals, vol. 18(1), pages 7-37.
    10. Williamson, Oliver E., 2005. "Transaction cost economics and business administration," Scandinavian Journal of Management, Elsevier, vol. 21(1), pages 19-40, March.
    11. Kevin Zheng Zhou & Julie Juan Li & Nan Zhou & Chenting Su, 2008. "Market orientation, job satisfaction, product quality, and firm performance: evidence from China," Strategic Management Journal, Wiley Blackwell, vol. 29(9), pages 985-1000, September.
    12. Mooweon Rhee & Pamela R. Haunschild, 2006. "The Liability of Good Reputation: A Study of Product Recalls in the U.S. Automobile Industry," Organization Science, INFORMS, vol. 17(1), pages 101-117, February.
    13. Morgan, Robert M. & Hunt, Shelby, 1999. "Relationship-Based Competitive Advantage: The Role of Relationship Marketing in Marketing Strategy," Journal of Business Research, Elsevier, vol. 46(3), pages 281-290, November.
    14. Perry, Monica L. & Sengupta, Sanjit & Krapfel, Robert, 2004. "Effectiveness of horizontal strategic alliances in technologically uncertain environments: are trust and commitment enough?," Journal of Business Research, Elsevier, vol. 57(9), pages 951-956, September.
    15. Ariño, Africa & de la Torre, Jose & Ring, Peter S., 2001. "Relational quality: Managing trust in corporate alliances," IESE Research Papers D/434, IESE Business School.
    16. Miller, Alex & Gartner, William B. & Wilson, Robert, 1989. "Entry order, market share, and competitive advantage: A study of their relationships in new corporate ventures," Journal of Business Venturing, Elsevier, vol. 4(3), pages 197-209, May.
    17. Charles Dhanaraj & Marjorie A Lyles & H Kevin Steensma & Laszlo Tihanyi, 2004. "Managing tacit and explicit knowledge transfer in IJVs: the role of relational embeddedness and the impact on performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 428-442, September.
    18. Lutz Schneider & Jutta Gunther & Bianca Brandenburg, 2010. "Innovation and skills from a sectoral perspective: a linked employer-employee analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(2), pages 185-202.
    19. J. Michael Geringer & Stephen Tallman & David M. Olsen, 2000. "Product and international diversification among Japanese multinational firms," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 51-80, January.
    20. Zhou, Kevin Zheng & Brown, James R. & Dev, Chekitan S., 2009. "Market orientation, competitive advantage, and performance: A demand-based perspective," Journal of Business Research, Elsevier, vol. 62(11), pages 1063-1070, November.
    21. Stefanie Ann Lenway & Thomas P Murtha, 2004. "Knowledge and competitive advantage, the coevolution of firms, technology and national institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(6), pages 560-563, November.
    22. Julie Li, 2005. "The Formation of Managerial Networks of Foreign Firms in China: The Effects of Strategic Orientations," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 423-443, December.
    23. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    24. Catherine Pardo & Björn Sven Ivens, 2008. "Key account management in business markets : an empirical test of common assumptions," Post-Print hal-02311744, HAL.
    25. Wayne S. DeSarbo & Kamel Jedidi & Indrajit Sinha, 2001. "Customer value analysis in a heterogeneous market," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 845-857, September.
    26. James Robins & Margarethe F. Wiersema, 1995. "A resource‐based approach to the multibusiness firm: Empirical analysis of portfolio interrelationships and corporate financial performance," Strategic Management Journal, Wiley Blackwell, vol. 16(4), pages 277-299.
    27. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    28. Kirsten Foss & Nicolai J. Foss, 2005. "Resources and transaction costs: how property rights economics furthers the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 541-553, June.
    29. Rose, Caspar & Thomsen, Steen, 2004. "The Impact of Corporate Reputation on Performance:: Some Danish Evidence," European Management Journal, Elsevier, vol. 22(2), pages 201-210, April.
    30. Suzanne M. Carter, 2006. "The Interaction of Top Management Group, Stakeholder, and Situational Factors on Certain Corporate Reputation Management Activities," Journal of Management Studies, Wiley Blackwell, vol. 43(5), pages 1145-1176, July.
    31. Piercy, Nigel & Lane, Nikala, 0. "The Underlying Vulnerabilities in Key Account Management Strategies," European Management Journal, Elsevier, vol. 24(2-3), pages 151-162, April.
    32. Jeffrey H. Dyer & Wujin Chu, 2003. "The Role of Trustworthiness in Reducing Transaction Costs and Improving Performance: Empirical Evidence from the United States, Japan, and Korea," Organization Science, INFORMS, vol. 14(1), pages 57-68, February.
    33. Black, Ervin L & Carnes, Thomas A & Richardson, Vernon J, 2000. "The Value Relevance of Multiple Occurrences of Nonrecurring Items," Review of Quantitative Finance and Accounting, Springer, vol. 15(4), pages 391-411, December.
    34. Caruana, Albert & Ewing, Michael T., 2010. "How corporate reputation, quality, and value influence online loyalty," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1103-1110, September.
    35. Shipilov, Andrew & Danis, Wade, 2006. "TMG Social Capital, Strategic Choice and Firm Performance," European Management Journal, Elsevier, vol. 24(1), pages 16-27, February.
    36. Liu, Chia-Ling (Eunice) & Ghauri, Pervez N. & Sinkovics, Rudolf R., 2010. "Understanding the impact of relational capital and organizational learning on alliance outcomes," Journal of World Business, Elsevier, vol. 45(3), pages 237-249, July.
    37. Abraham Carmeli & Ashler Tishler, 2004. "The relationships between intangible organizational elements and organizational performance," Strategic Management Journal, Wiley Blackwell, vol. 25(13), pages 1257-1278, December.
    38. Gary Davies & Rosa Chun & Michael A. Kamins, 2010. "Reputation gaps and the performance of service organizations," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 530-546, May.
    39. Marc J. Dollinger & Peggy A. Golden & Todd Saxton, 1997. "The Effect Of Reputation On The Decision To Joint Venture," Strategic Management Journal, Wiley Blackwell, vol. 18(2), pages 127-140, February.
    40. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    41. Joseph Lampel & Jamal Shamsie, 2003. "Capabilities in Motion: New Organizational Forms and the Reshaping of the Hollywood Movie Industry," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2189-2210, December.
    42. Glenn Hoetker, 2005. "How much you know versus how well I know you: selecting a supplier for a technically innovative component," Strategic Management Journal, Wiley Blackwell, vol. 26(1), pages 75-96, January.
    43. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pierluigi Murro & Valentina Peruzzi, 2022. "Relationship lending and the use of trade credit: the role of relational capital and private information," Small Business Economics, Springer, vol. 59(1), pages 327-360, June.
    2. Urszula Słupska & Zbigniew Drewniak & Rafał Drewniak & Robert Karaszewski, 2022. "Building Relations between the Company and Employees: The Moderating Role of Leadership," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    3. Yuqiu Lu & Guowei Li & Zhe Luo & Muhammad Anwar & Yunju Zhang, 2021. "Does Intellectual Capital Spur Sustainable Competitive Advantage and Sustainable Growth?: A Study of Chinese and Pakistani Firms," SAGE Open, , vol. 11(1), pages 21582440219, February.
    4. Tsai, Yuan-Hui & Lin, Chieh-Peng & Ma, Hwa-Chun & Wang, Rong-Tsu, 2015. "Modeling corporate social performance and job pursuit intention: Forecasting the job change of professionals in technology industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 14-21.
    5. Li, Yunjian & Chen, Jiawen & Li, Li & Huang, Xiaojun, 2024. "Government innovation awards, innovation funds acquisition and enterprise innovation," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 846-864.
    6. Rafal Drewniak & Urszula Slupska & Iwona Posadzinska, 2020. "Leadership and Internal Relational Capital of Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 373-388.
    7. Liao, Zhongju & Chen, Jie & Chen, Xueli & Song, Malin, 2024. "Digital platform capability, environmental innovation quality, and firms’ competitive advantage: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 268(C).
    8. Urszula Slupska & Zbigniew Drewniak & Robert Karaszewski, 2020. "Improving the Internal Relations Versus Shaping the External Relations of the Enterprise," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 572-585.
    9. Chanchai Phonthanukitithaworn & Wutthiya Aekthanate Srisathan & Chavis Ketkaew & Phaninee Naruetharadhol, 2023. "Sustainable Development towards Openness SME Innovation: Taking Advantage of Intellectual Capital, Sustainable Initiatives, and Open Innovation," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
    10. Benzidia, Smaïl & Makaoui, Naouel & Subramanian, Nachiappan, 2021. "Impact of ambidexterity of blockchain technology and social factors on new product development: A supply chain and Industry 4.0 perspective," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    11. Delgado-Verde, Miriam & Martín-de Castro, Gregorio & Cruz-González, Jorge & Navas-López, José Emilio, 2021. "Complements or substitutes? The contingent role of corporate reputation on the interplay between internal R&D and external knowledge sourcing," European Management Journal, Elsevier, vol. 39(1), pages 70-83.
    12. Wei‐Jr Juo & Chao‐Hung Wang, 2022. "Does green innovation mediate the relationship between green relational view and competitive advantage?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2456-2468, July.
    13. Frank, Björn & Enkawa, Takao & Schvaneveldt, Shane J. & Herbas Torrico, Boris, 2015. "Antecedents and consequences of innate willingness to pay for innovations: Understanding motivations and consumer preferences of prospective early adopters," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 252-266.
    14. He-Boong Kwon & Jooh Lee & Laee Choi, 2023. "Dynamic interplay of environmental sustainability and corporate reputation: a combined parametric and nonparametric approach," Annals of Operations Research, Springer, vol. 324(1), pages 687-719, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Annika Veh & Markus Göbel & Rick Vogel, 2019. "Corporate reputation in management research: a review of the literature and assessment of the concept," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 315-353, December.
    2. Gatzert, Nadine, 2015. "The impact of corporate reputation and reputation damaging events on financial performance: Empirical evidence from the literature," European Management Journal, Elsevier, vol. 33(6), pages 485-499.
    3. Dolores Gallardo-Vázquez & Luis Enrique Valdez-Juárez & José Luis Lizcano-Álvarez, 2019. "Corporate Social Responsibility and Intellectual Capital: Sources of Competitiveness and Legitimacy in Organizations’ Management Practices," Sustainability, MDPI, vol. 11(20), pages 1-29, October.
    4. Lui, Steven S. & Ngo, Hang-yue & Hon, Alice H.Y., 2006. "Coercive strategy in interfirm cooperation: Mediating roles of interpersonal and interorganizational trust," Journal of Business Research, Elsevier, vol. 59(4), pages 466-474, April.
    5. Bai, Xuan & Wang, Qingtao & Sheng, Shibin & Li, Julie Juan, 2021. "Cross-level interpersonal ties and IJV innovation: Evidence from China," Journal of Business Research, Elsevier, vol. 134(C), pages 618-630.
    6. Bernhard Swoboda & Cathrin Puchert & Dirk Morschett, 2016. "Explaining the differing effects of corporate reputation across nations: a multilevel analysis," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 454-473, July.
    7. Amanpreet Kaur & Balwinder Singh, 2018. "Re-examining Reputation–Performance Liaison in Indian Context," Business Perspectives and Research, , vol. 6(2), pages 100-112, July.
    8. Mahka Moeen & Deepak Somaya & Joseph T. Mahoney, 2013. "Supply Portfolio Concentration in Outsourced Knowledge-Based Services," Organization Science, INFORMS, vol. 24(1), pages 262-279, February.
    9. Moeen, Mahka & Somaya, Deepak & Mahoney, Joseph T., 2011. "Supply Portfolio Concentration in Outsourced Knowledge-Based Services," Working Papers 11-0106, University of Illinois at Urbana-Champaign, College of Business.
    10. Vlaar, P.W.L. & van den Bosch, F.A.J. & Volberda, H.W., 2006. "On the Evolution of Trust, Distrust, and Formal Coordination and Control in Interorganizational Relationships: Towards an Integrative Framework," ERIM Report Series Research in Management ERS-2006-035-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    11. Vassilis Tselios, 2008. "Income and educational inequalities in the regions of the European Union: Geographical spillovers under welfare state restrictions," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 403-430, August.
    12. Blind, Knut & Mangelsdorf, Axel & Pohlisch, Jakob, 2018. "The effects of cooperation in accreditation on international trade: Empirical evidence on ISO 9000 certifications," International Journal of Production Economics, Elsevier, vol. 198(C), pages 50-59.
    13. Delgado García, Juan Bautista & De Quevedo Puente, Esther, 2016. "The complex link of city reputation and city performance. Results for fsQCA analysis," Journal of Business Research, Elsevier, vol. 69(8), pages 2830-2839.
    14. Ranjay Gulati & Maxim Sytch, 2008. "Does familiarity breed trust? Revisiting the antecedents of trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 165-190.
    15. M. Billur Akdeniz & Roger J. Calantone, 2017. "A longitudinal examination of the impact of quality perception gap on brand performance in the US Automotive Industry," Marketing Letters, Springer, vol. 28(1), pages 43-57, March.
    16. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.
    17. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 0. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-46.
    18. Martinez-Noya, Andrea & Narula, Rajneesh, 2018. "What more can we learn from R&D alliances? : A review and research agenda," MERIT Working Papers 2018-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Kaveh Moghaddam & Thomas Weber & Pouya Seifzadeh & Sara Azarpanah, 2021. "Internal Reputation of the Firm: CEO Retention and Firm Market Performance," Corporate Reputation Review, Palgrave Macmillan, vol. 24(4), pages 205-221, November.
    20. Feng, Cong & Fay, Scott & Kashmiri, Saim, 2022. "The value relevance of descriptive R&D intensity," Journal of Business Research, Elsevier, vol. 139(C), pages 1394-1407.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:82:y:2014:i:c:p:167-176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.