Reputation Capital

Reputation capital is a term that refers to certain kinds of intangible long-term strategic assets of a firm. Corporate success depends on effective management of a firm’s intangible as well as its tangible assets. Accounting for up to 75 percent of a company’s value in the market, a firm’s reputation capital is widely recognized to be among the most significant, perhaps even the most important, intangible assets a company possesses. This entry first discusses questions over whether reputation capital can be quantified and about the effects of reputation capital and the efforts to increase it. It then discusses the competitive advantages of reputation capital, issues in its calculation and[Page 624] measurement, its connection with trust, the issue of assigning responsibility for creating reputation capital, and ...