The corporate reputation and consumer-company identification link as a sensemaking process: A cross-level interaction analysis

With two multilevel studies, the present research applies sensemaking theory to examine the ignored cross-level relationship of corporate reputation with consumer-company identification, along with moderators of this effect. The results indicate that reputation has a positive effect on consumer-company identification, but only when consumers have (1) established interpretive languages to perceive reputation cues and (2) a favorable disposition towards reputable companies as a social identity. The observed cross-level effect suggests the literature overestimates reputation’s effect size by focusing on perceived reputation. However, the existence of a cross-level effect supports the critical role of corporate reputation as an intangible asset and a rationale for firms to properly support stakeholder relationships.