Corporate reputation index: empirical research in banking sector

Damir Grgić ()
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Damir Grgić: HŽ Putnički prijevoz d.o.o.

Tržište/Market, 2012, vol. 24, issue 1, 23-45

Abstract: This paper focuses on presenting an improved model of corporate reputation measurement. This research builds on to the research conducted so far in relation to the instruments used for measuring corporate reputation. It aimed at widening the current theoretical knowledge and research on the instrument of bank reputation measurement, on the impact of individual aspects of business on the reputation of banks as well as on the impact of reputation on attaining competitive advantage. Accordingly, the main issues in this research were the understanding of dimensions of bank reputation measurement as well as the understanding of the direction and intensity of a bank’s reputation in relation to attaining its competitive advantage. Moreover, the aim was to suggest and test an improved model of corporate reputation measurement. A corporate reputation index (indeks reputacije poduzeća, IRP) – an improved model of measuring corporate reputation developed in this work, is firmly based on the current instruments used for measuring corporate reputation which are founded on the concept of social expectations. The model was tested through regression and SEM analysis. The data necessary for the empirical analysis was obtained through the CATI method of research on a sample of 798 respondents. Research results show unambiguously that a bank’s relations with its stakeholders contribute to its reputation. Therefore, it is justifiable to include them in the instrument used for measuring corporate reputation. On the other hand, the results show that the vision and leadership of the bank’s top figures do not contribute to its reputation. Although it is not possible to generalize the findings in relation to all the users of banking sector services, thanks to the size of the sample, they can be considered as indicative of the population of the Republic of Croatia. Future research, as a response to critique by certain authors, should include research on other groups of stakeholders – primarily employees, by using the model presented here.

Keywords: corporate reputation; instruments of measurement; banking sector (search for similar items in EconPapers)
Date: 2012
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