Antecedents and consequences of corporate reputation from a bi-stakeholder perspective in Turkish banking sector

Abstract

This paper examines the effects of corporate identity strength (CIS) and corporate reputation (CoR) on the performance of Turkish banks. We suggest that CIS is related to firm performance (FP). In addition, CoR is proposed as an important variable that has positive impacts on both organizational identification (OI) and FP. Presumed relationships are tested based on data obtained from 54 banks registered in the Turkey Banking System and Participation Banks Association of Turkey by using SmartPLS 3.0. The findings show that CIS is positively associated with CoR while they provide no empirical evidence in support of a direct relationship between CIS and OI, or between CIS and any of the other performance variables. Moreover, the results also provide empirical evidence regarding a positive relationship between CoR and FP in terms of self-reported and objective measures (AU= asset utilization, and ROA: return on assets). Besides, the findings support the mediation role of CoR between CIS and self reported firm performance. By highlighting the antecedent role of CIS on CoR and firm performance in the banking industry from a bi-stakeholder perspective, this study offers a framework for researchers and managers to visualize and understand the relationships between corporate-level constructs and individual and firm-level outputs, thus enhancing the movement of the Social Identity Theory in OB literature.