Explaining the differing effects of corporate reputation across nations: a multilevel analysis

Abstract

Although multinational corporations increasingly use their reputation as an important differentiation criterion, little is known about the varying effects of corporate reputation in an international context. In this study, the effects of corporate reputation across nations, particularly the moderating role of important institutional country differences, are analyzed. To provide insight into these issues, the authors refer to hierarchical data on 13,665 consumer evaluations of a multinational corporation in 40 countries. The results indicate a strong link between corporate reputation and consumers’ loyalty, but this relationship is reinforced or diminished by cultural, economic, or knowledge differences between countries. These moderators represent important factors when managing corporate reputations across nations.