Reputation Building : Small Business Strategies for Successful Venture Development

A Strategic Reference Point (SRP) perspective is usedto delineate various reputation-building strategies.Following adiscussion of the role that a positive corporate reputation can play in a smallfirm's success, the three dimensions of the SRP matrix are outlined. These dimensions, which include conditions internal to the firm, conditionsexternal to the firm, and time, are the basis for four reputation-buildingstrategies.These strategies include the dynamic exploitation of existingassets, the development of core competencies, image management, and theformation of strategic alliances.A field study of three enterprises inthe Israeli software industry was undertaken in 1997 and 1998 to determine thedegree to which the companies made use of reputation-building strategies.Interviews were conducted with senior managers at each of the companies, anddata were obtained about the firm's activities and performance.Managersalso completed a survey about their company's strategies. According to the data, the firm that focused on the long-term development ofcore competencies remained relatively obscure, while another company achievedmoderate success by focusing on the short-term exploitation of existingassets.The third and most successful firm implemented a strategy thatstrengthened internal core competencies, created a positive corporate image,and broadened the firm's external network. Small businesses can build theirreputations most efficiently by taking a comprehensive approach that fullyintegrates all four strategies. (SAA)