Study On Reputation Of New Venture From An Embedability Perspective

With the rapid development of our country's economy,our country set off a strong entrepreneurial boom,new ventures have sprung up.But it is common in our country that new ventures have low survival,enterprise growth is not optimistic.Investigate its reason,unstable of the network relations and lack of corporate reputation or legitimacy is the more common reasons.Reputation is an important intangible asset which has the function of "signal",plays an important role in the process to ensure the sustainable development of the new ventures.Good reputation can reduce the uncertainty of information,get financial support from potential investors;good reputation can attract more knowledge-based talent within the innovation cluster,accumulate knowledge stock for new ventures,and improve enterprise innovation ability;good reputation can help new ventures to overcome legitimacy difficult for entering a new market,earn the trust of potential customers,and accelerate process of the start-up enterprise internationalization.The new venture must achieve greater support and better social status,which has a good social reputation if it wants to obtain the required resources,opportunities or enhance the future against various uncertain factors,and enhance enterprise competitive advantage.Embeddedness describes the contact structure of enterprises and other enterprises or individual in social and economic system,the contact is influenced by the political,cultural and cognitive factors in the system,the different individuals connected to each other,and dependent on each other under the action of embeddedness..Corporate reputation is the stakeholder's collective awareness for the past actions and future prospects of enterprise according to certain comparison standard.As a kind of cognitive result,stakeholder's evaluation of new venture reputation is influenced not only by image and culture awareness of new venture,but also by the social network and social environment which new venture embedded in.In addition,through the social network connection can produce positive cognition,which can promote new enterprise exchange resources in its late development.Therefore,social network resources can improve investment level and persistence level of stakeholder relationship specific assets,and spread at different levels of the enterprise network through the networkdiffusion,to further enhance the reputation and status in a social network.Based on the above research background and theme,this study takes China as the research situation,based on the new ventures in the growth stage,focus on new ventures established reputation,in the perspective of embedding of new ventures,attempts to systematically analyze the influence factors of start-up reputation,main research content is as follows:First,the literature review introduced the relevant theoretical basis of this study,including start-up reputation theory,embedded theory,the theory of new institutional,and analysed the relationship between embeddedness,start-up enterprise reputation and organizational legitimacy.Through literature review,this paper found that it can analys the influence of embeddedness on new ventures reputation from the macro,meso and micro three levels :(1)the macro level for the embedded system,institutional background of formal and informal system of venture enterprise reputation;(2)the meso level for network embedded,embedded analysis continuation of Granovetter the effect of structural embeddedness and relational embeddedness on new corporate reputation;(3)the micro level is mainly cognitive embeddedness,selected enterprise culture for enterprise cognition to explore the cognitive mechanism of new corporate reputation from the perspective of individual.Secondly,the literature construct the theoretical model of the effect of embeddedness on new ventures.In this paper,based on the reputation of the related literature at home and abroad,from three levels of new ventures embedded,namely:(1)the macro level of embedded system,embedded system including formal and informal institution embedded;(2)the meso level include network centrality,relationship strength,network density and trust;(3)the micro level is cognitive embeddedness including corporate culture,demonstrates the relationship between embeddedness,organizational legitimacy and reputation of new ventures.Finally,the literature did the empirical research and verified the hypotheses proposed in this study using regression model and statistical analysis methods,the main conclusion of the study are as follows:(1)the formal system,network centrality,relationship strength,trust relationship and enterprise culture embedded in new venture has a positive effect on the new enterprise reputation,and informalinstitutions,the network density has not positive impact on entrepreneurial reputation;(2)in addition to informal institutions and the network density of new ventures,the other dimensions affected new venture reputation by organizational legitimacy.The result shows that the formal embedded system of new ventures and the center position,network relationship strength,trust,corporate culture has a direct impact on the reputation of the new enterprise at the same time,there are also indirect effects,and indirect effect is more significant than the direct effect.The innovation of this research lies in:1.Expanding the research perspective.Through review past literature,few literatures at home and abroad systematically analysed the influence factors of start-up reputation from the macro,meso and micro environmental which the new venture embedded,this study is different from the past,systematically analysed the effects of new enterprise embedding environment on corporate reputation in the macro,meso and micro levels starting from the embeddedness perspective,this expand the research perspective of corporate reputation,and rich enterprise reputation theory.2.This paper proposes and demonstrates the influence mechanism of embeddedness on new ventures.The reputation of existing literature shows that domestic and foreign scholars have gradually began to focus on the impact of embeddedness on corporate reputation,but how to effect new enterprise reputation,also few people study.This study verified the influence mechanism that all levels of new ventures embedding effect on new corporate reputation through organizational legitimacy,deepen the understanding of the mechanism of reputation effect of new enterprise embeddedness,further proved the importance of organizational legitimacy in new ventures establishing reputation.