Reputation Building and Performance: An Empirical Analysis of the Top-50 Pure Internet Firms

This study examines the relationship between three types of reputation building activities-marketing investments, reputation borrowing, and media exposure--and firm performance using a sample of Top-50 pure Internet firms. The study addresses a question of paramount practical importance about how the strategic choices of Internet firms affect their performance in both financial and product markets. The finding suggests that reputation building activities may be one of the key determinants of competitive success for Internet firms. At the same time, it raises questions regarding the longevity of the impact of such activities.