Browsing by Author "Wepener, Marie Louisa"
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- ItemThe development of a new instrument to measure client-based corporate reputation in the service industry(Stellenbosch : Stellenbosch University, 2014-12) Wepener, Marie Louisa; Boshoff, Christo; Van der Merwe Smit, Eon; Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.ENGLISH ABSTRACT: The link between a favourable corporate reputation and business benefits is well established. Most executives recognise the importance of a favourable corporate reputation in building a competitive advantage for their organisations. However, the measuring of a corporate reputation, particularly in the service industry, has remained problematic. This study addresses this lingering gap in the literature and focuses on the development of an instrument to measure the client-based corporate reputation of organisations functioning in the service industry. This includes the identification of the factors (dimensions) that clients of large service organisations consider when they evaluate the reputations of organisations. Large organisations functioning in two sectors, the banking sector and the airline sector, were selected as the focus in this study. Groundwork for the design of a reputation-measuring instrument included the clarification of key terms (e.g. corporate identity, corporate image, corporate brand and corporate reputation). It also included a review of corporate reputation from various perspectives (e.g. organisational studies, economics, strategy and corporate communication). It also included discussions on scale development and the various approaches to the conceptualisation and operationalisation of corporate reputation. This study followed mainly a positivistic paradigm, involving quantitative methods. However, two qualitative methods were also used: a focus group discussion to identify patterns of thinking used by clients to assess corporate reputation and the expert-panel method to obtain the inputs of a panel of experts. Six large-scale surveys in three waves served as primary data sources. Large samples of the target population were used to obtain data that was statistically analysable. Secondary data sources included an extensive literature review. To develop the measurement scale, a series of steps was used to refine, purify and replicate the instrument. The process started with an exploratory factor analysis and concluded with an invariance analysis. The data was analysed during three waves of data collection. A variety of statistical techniques was used to assess the construct validity of the proposed instrument, including unidimensionality, convergent validity, reliability, discriminant validity, nomological validity, model fit and invariance. The outcome is a 19-item instrument using five dimensions to measure the client-based corporate reputation of large organisations in the service industry. These dimensions are Emotional appeal, Corporate performance, Social engagement, Good employer and Service points. This study contributes to the existing literature by the development of a valid and reliable instrument that can be used to measure a service organisation’s client-based corporate reputation before embarking on a reputation-enhancement programme. This study proposes that the measurement of an organisation’s client-based corporate reputation is a crucial starting point to assess the gap between where it is and where it wants to be in terms of its corporate reputation, and to manage its reputation accordingly. By using the proposed instrument, managers will be able to track their organisations’ corporate reputation over time, both overall and at the level of the five dimensions separately.