Editing Reputation (section)

=== Consequences ===

==== Performance outcomes ====
Myriad reputation studies from the 1980s to the 2000s demonstrated that a company's reputation was positively related to various performance measures, such as financial success and profitability.<ref>{{Cite journal|last=Rao|first=Hayagreeva|author-link=Hayagreeva Rao|date=1994|title=The Social Construction of Reputation: Certification Contests, Legitimation, and the Survival of Organizations in the American Automobile Industry: 1895–1912|journal=Strategic Management Journal|language=en|volume=15|issue=S1|pages=29–44|doi=10.1002/smj.4250150904|issn=1097-0266}}</ref><ref name=":6" /> However, more recent work demonstrated that reputation can be both "a benefit and a burden",<ref>{{Cite journal|last1=Zavyalova|first1=Anastasiya|last2=Pfarrer|first2=Michael D.|last3=Reger|first3=Rhonda K.|last4=Hubbard|first4=Timothy D.|date=2015-07-24|title=Reputation as a Benefit and a Burden? How Stakeholders' Organizational Identification Affects the Role of Reputation Following a Negative Event|journal=Academy of Management Journal|volume=59|issue=1|pages=253–276|doi=10.5465/amj.2013.0611|issn=0001-4273}}</ref> suggesting that "the bigger you are, the harder you (might) fall" with respect to reputation.<ref name=":5" />

==== Decision outcomes ====
Relatedly, researchers have theorized or demonstrated that a company's reputation could also influence the decisions and perceptions of its managers;<ref name=":11">{{Cite journal|last1=Petkova|first1=Antoaneta P.|last2=Wadhwa|first2=Anu|last3=Yao|first3=Xin|last4=Jain|first4=Sanjay|date=2013-05-28|title=Reputation and Decision Making under Ambiguity: A Study of U.S. Venture Capital Firms' Investments in the Emerging Clean Energy Sector|journal=Academy of Management Journal|volume=57|issue=2|pages=422–448|doi=10.5465/amj.2011.0651|s2cid=167381065|issn=0001-4273}}</ref> in some cases, reputation can promote the use of '''risk-reduction''' strategies by managers as they seek to preserve the reputation they have cultivated.<ref name=":11" /> In other cases, researchers argue that reputation can embolden managers to '''take risks''' in areas unrelated to their reputation, since stakeholders may be focused on the reputation itself and inattentive to other areas of the company.<ref>{{Cite journal|last=Barnett|first=Michael L.|date=2012-02-03|title=Why Stakeholders Ignore Firm Misconduct|journal=Journal of Management|language=en-US|volume=40|issue=3|pages=676–702|doi=10.1177/0149206311433854|s2cid=146428499|issn=0149-2063}}</ref><ref>{{Cite web|title=APA PsycNet|url=https://psycnet.apa.org/record/1991-97723-000|access-date=2020-08-25|website=psycnet.apa.org|language=en}}</ref>