Assessing the impacts of a firm's reputation on the financial performance of SMEs: Evidence from selected literature

Abstract

Financial performance has been the beckon of growth of most SMEs worldwide as such there is a growing need to improve small and medium-sized enterprises' (SMEs) reputation to gain more financially and to be highly competitive. For this reason, this study reviewed 25 articles referenced in Web of Science and Scopus journals using a systematic literature review to explain the impacts of reputation on SME firms' financial performance. The author identified differences in theoretical models in the articles and conceptualize them summarily based on the outcome. Articles were selected from 2018 to 2022. The resultant effect of this review asserts that business reputation significantly influences SMEs' financial performance, and it is mediated by leadership. However, profitability reduces if SME leaders concentrate more on investment in reputation as acclaimed by some CEOs. This research will leverage more studies in the field of SME performance and reputational management factors. It will give guidance to future researchers thematically.