The role of corporate reputation on co-operants behavior and organizational performance

Purpose – Corporate reputation (CR) is an important intangible asset of a company. The purpose of this paper is to investigate the role of CR on co-operants behavior and on organizational performance in co-operative organizations. Design/methodology/approach – This investigation proposes an investigation model and tests the framework using structural equation modeling. For this purpose, 263 valid questionnaires were collected from a research sample comprised of co-operants of the biggest dairy union of co-operatives in Iberia. Findings – CR has a significant impact on co-operatives members’ loyalty and on co-operatives’ performance. The model provides a wider comprehension of the CR concept and introduces both the drivers and consequences. Research limitation – This investigation is based on a sample of members of one union of co-operatives in the specific dairy milk industry. Practical implication – The results give new guidelines to redress the co-operatives traditional management, namely the management of intangible assets like reputation. Internal culture, satisfaction with management, image and communication can boost reputation and thus organizational performance and members’ loyalty. Social implication – This paper aims to contribute to the competitiveness of a type of organization closed to the social structure of the rural population. Originality value – The results bring the management challenges of the twenty-first century to the traditional principles underlying co-operatives management helping them to reinforce competitiveness.