Bonding of Market-Based Innovativeness with Corporate Reputation Is Emotional or Rational? Evidence From the Pharmaceutical Industry of Pakistan

Abstract

The study is conducted to find the impact of Product Innovativeness (PI) and Market Innovativeness (MI) on the Emotional Appeal of Corporate Reputation (EA-CR) as well as Corporate Reputation about Products and Services (CR-PS) in the pharmaceutical industry of Pakistan. Primary data was gathered from the sales force of the 15 companies selected via stratified random sampling. Existing measurement scales of the constructs were utilized after adaptation due to their consistency and robustness in different contexts. Moreover, PLS-SEM is used for data analysis. The findings showed that PI significantly affects CR-PS and EA-CR. On the other hand, market innovativeness does not significantly influence CR-PS, however, its impact on EA-CR is also significant. Results suggested that pharmaceutical companies of Pakistan should work over market-based innovativeness for their goods and services to be viewed as superior and innovative, besides, such companies are also admired, liked and esteemed by various publics. The role of innovativeness in shaping sophisticated and legitimate corporate reputation has been recognized by researchers. Nevertheless, both constructs are multidimensional and to the best of the authors’ knowledge, this is the first study discussing the bonding of market-based innovativeness with EA-CR and CR-PS in the context of pharmaceutical sector.