Reputation management in the context of an international merger. Case: Logica Finland

Abstract

Objective of the Study: The objective of this study was to investigate the aspects of reputation management in the context of an international merger. The case company was Logica Finland, which had recently become a part of a multinational IT service company, Logica. The purpose was to answer the research question, which was set as: “What issues need to be taken into account in order to manage reputation in the context of an international merger?”

Methodology and the Theoretical Framework: The research approach of this study was qualitative research and the study was conducted as a single-case study. The data consisted of ten semi-structured interviews conducted among the internal and external stakeholders of the case company. Employees and customers were selected as the focus stakeholder groups. The theoretical framework was built to analyze the issues which should be taken into account in order to manage reputation in a sustainable way in the case context.

Findings and Conclusions: The study introduced the concept of sustainable reputation management, which refers to seeking alignment between corporate identity and image by balancing corporate behavior, corporate communication and stakeholders’ expectations in such a manner that stakeholder experiences and their images of the company will meet. The findings suggest that sustainable reputation management is a suitable approach to manage reputation in the context of an international merger. Communication is one of the dimensions of reputation, and based on the findings, its role is to balance the relationship between stakeholders’ images and experiences. If new promises are given to customers in a merger situation, the company should ensure that the promises are fulfilled, in order to balance communication, behavior and stakeholders’ expectations. In spite of the changes of the corporate brand or the business strategy caused by the merger, the company’s internal identity and the external images should be aligned in order to create consistency in the eyes of important stakeholder groups.

Keywords: corporate reputation, reputation management, sustainable reputation management, corporate identity, corporate image, brands, stakeholder perceptions, corporate communication, international merger, international business communication