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date: 16 May 2021

Abstract and Keywords

This article describes the processes through which young firms develop their initial reputations. The reputation-borrowing perspective shows that securing affiliations with prestigious third parties can compensate to some extent the lack of reputation young entrepreneurial firms face. It is noted that uncertainty reduction is an important stage in the process of developing reputation for young firms. In addition, the three stages, namely the attention-generating stage, the uncertainty-reduction stage and the positive evaluation stage, in the development of reputation for young entrepreneurial firms and the activities determined by research to date as potentially relevant are explained. It is found that the gender of the founders and/or top management team members may play a role – both in terms of priorities and success with reputation-development efforts. There is also no indication of the relative objectivity or reliability of different reputation-granting authorities.

Keywords: young entrepreneurial firms, affiliations, reputations, attention-generating stage, uncertainty-reduction stage, positive evaluation stage, gender

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