Abstract

Digital reputation (Etter et al., 2019) is the overall opinion about a business that results from a social evaluation based on positive criteria. It is essential for attracting new business and has been found to correlate with market demand (Luca & Reshef, 2021). However, during crises such as the COVID-19 pandemic, digital reputation alone may not be enough to sustain financial performance (Parker et al., 2019). This study investigates whether non-profits, specifically business schools, can leverage robust digital reputations (Rindova et al., 2010) to withstand crises better. The study explores the antecedents of digital reputation, including online consumer signals, program quality, and prominence. Business schools' reputation is crucial to their funding, and MBA programs remain a primary source of income. The study aims to determine whether business schools with stronger digital reputations exhibit better financial performance during crises. The study methodology includes user-generated content from the web and social media and internet signals that prelude reputation. It also integrates new digitally promotable variables such as employment outcomes, alumni, and athletic successes to enhance perceived quality and prominence. Empirically, the study analyzes the impact of these variables on the operational revenue of US business schools and finds a positive correlation. Econometrically, the study employs Lagged and Fixed Effect Structural Equation Modeling and an Adjusted Mean Model using Difference-in-Difference analysis to assess revenue performance during COVID-19. The study finds a significant financial decline not mitigated by digital reputation alone. The research contributes to the literature on disaster mitigation by examining the effects of digital reputation through the lens of COVID-19. The study finds that while institutions with greater digital prominence suffer more initially, they recover quicker than those with lesser prominence. The finding presents a novel perspective on how digital reputation influences recovery post-crisis and enriches our understanding of organizational resilience. The longitudinal data used in the study also provide a comprehensive view of the challenges and opportunities posed by global crises.

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