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Innovar

Print version ISSN 0121-5051

Abstract

NEWBURRY, William  and  SOLEIMANI, M. Abrahim. Multi-level reputation signals in service industries in Latin America. Innovar [online]. 2011, vol.21, n.39, pp.191-204. ISSN 0121-5051.

This study uses signaling theory to investigate industry -firm- and individual-level determinants of individual-level corporate reputation assessments in the context of Latin America. In a hierarchical linear model, we test our theory using 76,419 individual evaluations of 80 companies in five Latin American countries collected by the Reputation Institute in conjunction with the Foro de Reputación Corporativa. Results show that across our Latin American sample, reputations of firms in the telecom and energy industries are significantly lower than those of manufacturing firms. Additionally, we find consistent evidence across marginalized groups (e.g., women, lower social class, education and income) that they assess telecom industry reputations relatively higher than their less marginalized counterparts do. Results are mixed with regards to marginalized group assessments of firms from other service industries. Additionally, counter to expectations, we do not find evidence that firm size or financial performance impact reputation assessments.

Keywords : corporate reputation; signaling theory; marginalization; service industries; Latin America.

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