Corporate reputation, country reputation and international performance: bridging institutional theory and emerging markets insights

Purpose This study aims to examine the role of corporate and country reputation as drivers of international performance in Latin American firms, as well as the moderating effect of country reputation on the relationship between corporate reputation and international performance. Design/methodology/approach This study uses hierarchical regressions using unbalanced panel data from 44 Latin American companies across the region’s six largest economies, spanning eight consecutive years. Findings The results show a positive direct effect of corporate and country reputation on international performance and confirm the moderation effect of country reputation on the relationship between corporate reputation and international performance. The results should be interpreted with caution due to the limited sample size and the focus on six Latin American economies. Practical implications This study highlights the significance of leveraging a company’s country-of-origin reputation in its international strategies by actively promoting its associated values and benefits to strengthen its organization’s reputation abroad. For policymakers, it underscores the importance of developing country promotion strategies and strengthening formal institutions (e.g. governance, transparency, anti-corruption measures), to cultivate a positive country reputation, thereby enhancing the international activities and standing of local firms and fostering global competitiveness. Originality/value This exploratory research contributes to the field by helping to understand reputation as an element that precedes superior international performance. It also contributes to the institutional theory, particularly in understanding the legitimization process in international business contexts, by explaining how a good reputation may affect the performance of Latin American companies.