Towards a Theory on Corporate Reputation and Survival of Young Firms

A high percentage of companies cease to exist in the first years of life because of their typical fragility. There is a widespread view that these companies are very fallible. New businesses do not have a history that demonstrates, indirectly, their ability to meet the expectations of customers and stakeholders (investors, lenders, strategic partners, suppliers, dealers). Therefore, the main cause of the fragility of the new businesses is the lack of a reputation. This is the weakness that unites the newly established firms, distinguishing them from those who have already passed the first stage of life. This lack of reputation hinders the acquisition of human resources, financial and technical they need to survive. Therefore, these young firms must quickly gain customers and stakeholders confidence. This study highlights this logical relationship between corporate reputation and survival of young companies, focusing some levers that can contribute to the building of corporate reputation.