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Organizational Reputation as a Source of Sustainable Competitive Advantage and Above-Normal Performance: An Empirical Test among Local Authorities in Israel

Author: ABRAHAM CARMELI AND AARON COHEN
Published in PAM, Vol. 6 No. 4

The role of organizational reputation (OR) was studied as a source
of sustainable competitive advantage (SCA) and superior performance,
theoretically and empirically, among local authorities in Israel. Using the
LISREL VIII program, we proposed a mediation model that argued for a
relationship between OR and financial performance, mediated by three tests
for SCA: OR-value, OR-rareness and OR-inimitability. The effects of
demographic and environmental variables on financial performance were
also examined. Strong support was found for the resource-based view
(RBV), maintaining that to achieve superior performance, organizations
need to acquire SCA, which is dependent upon the core resources it
possesses.

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