We apply reputation theories to the MNE and study the reputational consequences of a move undertaken by an MNE subunit in a given locale for the MNE as a whole. We conceptualize this outcome as the balance between categorical and institutional influences that manifest to varying degrees at different organizational and spatial levels. We employ foreign listing as the reputation-generating move and test its reputational effects based on a sample of non-US MNEs that listed in the US. We find that the listing affects the reputation of US subunits and the MNE in the US and globally. The impact varies by the strength of the categorical associations among subunits, measured by their names, and the diversity of their audiences, measured by their aggregated cultural distance from the US. These findings deepen the understanding of the way by which MNE reputation is formed and the mechanisms that drive reputational spillovers among MNE subunits. The study extends the theorization of assets’ sharing among MNE subunits to reputation, an asset that received limited research attention in spite of its critical impact on MNE. It shows that reputation is an asset that creates value for MNEs across countries and can support international expansion.
