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Reputation and Organizational Efficiency: A Data Envelopment Analysis Study

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Abstract:

In the spirit of the resource-based view, resources can be treated as ‘stocks’ that are used by the firm in its activities. Managerial actions influence, both directly and indirectly, the quantities of the resource stock by ‘filling’ or ‘emptying’ them. Consequently, it is important for the organization to have a measure of the state of the resource stock, as well as an understanding of how different actions affect their level. In this sense, for any managerial measure to be useful, it should be operation-oriented and not simply an indicator of past performance. In this paper, the Data Envelopment Analysis (DEA) methodology is proposed as a way to view reputation from another angle — from inside the organization. The approach is described by means of an example based on data similar to that employed in the reputation quotient (RQ). The implications for applying it to the six attributes that define the RQ are discussed. The authors believe the results of a DEA investigation can lead to an assessment of the internal operational aspects of reputation and thereby can assist practicing managers to better utilize this strategic resource.Corporate Reputation Review (2005) 8, 45–58; doi:10.1057/palgrave.crr.1540238

Document Type: Research Article

DOI: http://dx.doi.org/10.1057/palgrave.crr.1540238

Affiliations: 1: 1The Norwegian University of Life Sciences, Norway 2: 2The Norwegian School of Management, Norway

Publication date: April 1, 2005

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