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The Company You Keep: How Young Firms in Different Competitive Contexts Signal Reputation through Their Customers

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  • A. Rebecca Reuber
  • Eileen Fischer

Abstract

This article explores how young firms, across different competitive contexts, signal reputation through their customers. Four distinct competitive contexts were differentiated based on whether the complexity of the customer's purchase process was high or low and whether the product/service was customized or standardized. CEOs of young firms operating in each of the four contexts were interviewed to discern patterns, both within and across contexts, in the reputational signals conferred by customers. Analysis of the interview data yields suggestions for how current theory on the exchange partners of young firms can be refined and extended, as well as propositions related to customer–derived reputation in different competitive contexts.

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  • A. Rebecca Reuber & Eileen Fischer, 2005. "The Company You Keep: How Young Firms in Different Competitive Contexts Signal Reputation through Their Customers," Entrepreneurship Theory and Practice, , vol. 29(1), pages 57-78, January.
    • Handle: RePEc:sae:entthe:v:29:y:2005:i:1:p:57-78
    DOI: 10.1111/j.1540-6520.2005.00069.x
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    7. Kimberly A. Eddleston & Jamie J. Ladge & Cheryl Mitteness & Lakshmi Balachandra, 2016. "Do you See what I See? Signaling Effects of Gender and Firm Characteristics on Financing Entrepreneurial Ventures," Entrepreneurship Theory and Practice, , vol. 40(3), pages 489-514, May.
    8. C. S. Richard Chan & Annaleena Parhankangas, 2017. "Crowdfunding Innovative Ideas: How Incremental and Radical Innovativeness Influence Funding Outcomes," Entrepreneurship Theory and Practice, , vol. 41(2), pages 237-263, March.
    9. Nataliya Galan & Ellinor Torsein, 2021. "Identification of international opportunities: A study of mature firms in mature industries," Journal of International Entrepreneurship, Springer, vol. 19(1), pages 53-103, March.
    10. Yli-Renko, Helena & Denoo, Lien & Janakiraman, Ramkumar, 2020. "A knowledge-based view of managing dependence on a key customer: Survival and growth outcomes for young firms," Journal of Business Venturing, Elsevier, vol. 35(6).
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    12. Lanchimba, Cintya & Welsh, Dianne H.B. & Fadairo, Muriel & Silva, Vivian-Lara D.S., 2021. "The impact of franchisor signaling on entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 131(C), pages 337-348.
    13. Liliana Doganova, 2009. "Entrepreneurship as a process of collective exploration," Working Papers halshs-00431695, HAL.
    14. Suzanne Mawson, 2018. "Customer perceived value in high growth firms," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(75), pages 755-778, December.
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    18. Tevfik Aktekin & Dev K. Dutta & Jeffrey E. Sohl, 2018. "Entrepreneurial firms and financial attractiveness for securing debt capital: a Bayesian analysis," Venture Capital, Taylor & Francis Journals, vol. 20(1), pages 27-50, January.
    19. Antoaneta P Petkova, 2016. "Standing Out or Blending In? The Formation of New Firms’ Legitimacy and Reputation under Different Levels of Market Uncertainty," Corporate Reputation Review, Palgrave Macmillan, vol. 19(1), pages 22-34, February.
    20. Eileen Fischer & Rebecca Reuber, 2007. "The Good, the Bad, and the Unfamiliar: The Challenges of Reputation Formation Facing New Firms," Entrepreneurship Theory and Practice, , vol. 31(1), pages 53-75, January.
    21. Bömer, Max & Maxin, Hannes, 2018. "Why Fintechs Cooperate with Banks - Evidence from Germany," Hannover Economic Papers (HEP) dp-637, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    22. Guldiken, Orhun & Tupper, Christina & Nair, Anil & Yu, Huizhi, 2017. "The impact of media coverage on IPO stock performance," Journal of Business Research, Elsevier, vol. 72(C), pages 24-32.
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    25. Karl Taeuscher, 2019. "Uncertainty kills the long tail: demand concentration in peer-to-peer marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 649-660, December.

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