The purpose of this paper is to investigate the antecedents, internal/external drivers and circumstances that diminish the importance of reputation and permit it to be circumvented in the context of a fusion (Monsanto-Bayer) and propose a comprehensive stakeholder perception-molding (“sense-giving”) model to counter reputation-damaging factors.
The present study is a longitudinal case study of merging entities using an intra-organizational evolutionary perspective combined with external analysis.
Reputational hurdles can be successfully circumvented by a multifaceted strategy leveraging timely and tailored combinations of cognitive, conative and linguistic perception-molding strategies for effective management of diverse stakeholder perception processes spanning across identity orientation, legitimacy, posture, consistency, commitment, justification and transparency.
The research is susceptible to the general limitations of case studies such as omission bias in terms of focusing on only two purposefully chosen market-leader firms involved in a merger, though every effort was made to track competitor movements, broad trends in markets and the micro- and macro-environments.
The proposed heptagonal reputation circumvention perception-molding framework (Figure 1) summarizes various actionable strategies to help managers develop a global vision and portfolio of strategies to proactively or reactively manage attacks on reputation.
An in-depth and multi-decade study of antecedents and internal/external drivers of the successful mega-fusion of two companies with a long history of reputational shocks was leveraged to provide unique insights into the interplay of various strategies targeting diverse stakeholder perceptions. These insights were then generalized to create a comprehensive perception-molding strategic framework to help firm managers circumvent reputational tarnishment hurdles.
