Two Sides to Every Coin: The Benefits and Burdens of Organizational Reputation on Employees

Abstract

We consider the possibility that a positive organizational reputation brings both benefits and burdens to employees working for those organizations. Drawing from the “Red Queen” notion in competitive strategy and from behavioral theories of stress, we argue that organizational reputation increases stakeholders’ expectations for positive outcomes. These expectations can cause employees to identify more with the high reputation organization, but they may also pressure employees to devote more of their time to the job. In turn, increased identification and time commitment have contrasting effects on employees’ emotional exhaustion. As such, organizational reputation simultaneously serves as a b..