Organizational Function and Reputation Management: Evidence from Central Agencies in China

Public organizations use various reputation symbols to develop and maintain organizational legitimacy, and it is theoretically relevant to explore why they leverage different combinations of reputation symbols. Previous research on organizational reputation has primarily focused on the impact of organizational characteristics on reputation management in regulatory agencies, and most studies adopt case analysis or QCA research methods. This study, based on machine learning of massive textual data, demonstrates the influence of the functional attributes of agencies themselves and the central government's expenditure on organizational reputation. This article seeks to explain the effects of agency function on different reputation dimensions of central agencies in China. These findings were based on advanced machine learning coding of 4,95,384 articles on 449 central agencies in China published in the People’s Daily from 1949 to 2019. The research shows that organizational reputation is closely related to the functional role played by each agency in economic and social development. The empirical findings unequivocally demonstrate a conspicuous dichotomy between agencies vested with economic functions and their non-economic counterparts. Notably, agencies with economic functions evince a discernible decline in both moral and procedural reputation, juxtaposed with a commendable ascent in technical standing. Upon undertaking a more nuanced classification of agency functions, a striking differentiation emerges. Macroeconomic and monetary agencies, distinguished by their pivotal role in shaping fiscal policy and managing monetary affairs, exhibit an exemplary blend of performative prowess and technical expertise. Similarly, Specialized economic agencies, owing to their specialized domain knowledge and expertise, command an elevated echelon of technical reputation. Contrastingly, agencies entrusted with the domains of education, technology, culture, social security, resources, and environment manifest a multifaceted reputation, characterized by commendable performance, moral rectitude, and technical acumen. This notable distinction is particularly pronounced when these agencies are juxtaposed against their counterparts in administration and general affairs, where a discernible disparity in performance, moral standing, and technical expertise becomes apparent. In light of these findings, it is evident that the nature of an agency's economic function exerts a significant influence on its reputation, with moral and procedural standing often bearing the brunt of this association. However, it is imperative to acknowledge the nuanced variations within specific agency functions, as they contribute to the divergent reputation profiles observed across different domains of governance. This article extends the theory of organizational reputation from regulatory agencies to all agencies, revealing the reputation management preferences behind different functional agencies.