The Company You Keep: How Young Firms in Different Competitive Contexts Signal Reputation through Their Customers

This article explores how young firms, across different competitive contexts, signal reputation through their customers. Four distinct competitive contexts were differentiated based on whether the complexity of the customer's purchase process was high or low and whether the product/service was customized or standardized. CEOs of young firms operating in each of the four contexts were interviewed to discern patterns, both within and across contexts, in the reputational signals conferred by customers. Analysis of the interview data yields suggestions for how current theory on the exchange partners of young firms can be refined and extended, as well as propositions related to customer–derived reputation in different competitive contexts.