Reputation incongruence and the preference of stakeholder: Case of MBA rankings

Abstract

In this paper, we examine the effect of an organization’s multi-dimensional reputation on the external stakeholders’ preference for an organization in the notions of reputation incongruence. We propose that an organization’s incongruent reputation, or large variations among the reputations of each dimension, can be an unfavorable signal to its stakeholders based on theoretical ideas that claim reputation incongruence induces the ambiguity and risk of an organization perceived by stakeholders. We also investigate the moderating effect of reputation incongruence by positing that this incongruence may nullify the influences of reputation dimensions on the preferences of stakeholders. These propositions about reputation incongruence are empirically examined in the context of MBA programs of the global business schools which have three dimensions of reputation— career development, globalization, and research performance.