406 Int. J. Business Performance Management, Vol. 9, No. 4, 2007 Copyright © 2007 Inderscience Enterprises Ltd. Reputation performance: a portfolio selection approach Andreas Andrikopoulos Department of Financial and Management Engineering, University of the Aegean, 31, Fostini Street, Chios 82 100, Greece E-mail: apa@fme.aegean.gr Epaminondas Koronis* Warwick Business School, University of Warwick, Coventry CV4 7AL, UK E-mail: e.koronis@warwick.ac.uk *Corresponding author Abstract: This paper introduces a normative view on corporate reputation strategic management. Reputation performance is conceptualised as the outcome of complex processes and social interactions and the lack of a holistic reputation performance management framework is identified. In an attempt to fill this gap, a portfolio-based approach is put forward. Drawing on the foundations of modern portfolio theory we create a portfolio-based reputation management algorithmic model where reputation components and priorities are weighted by decision makers and shape organisational change in an attempt to formulate a corporate reputation strategy. The rationale of this paper is based on the foundational consideration of organisations as choosing the optimal strategy by seeking to maximise their reputation performance while maintaining organisational stability and minimising organisational risk. Keywords: reputation performance; corporate reputation; modern portfolio theory; business strategy; organisational risk. Reference to this paper should be made as follows: Andrikopoulos, A. and Koronis, E. (2007) ‘Reputation performance: a portfolio selection approach’, Int. J. Business Performance Management, Vol. 9, No. 4, pp.406–418. Biographical notes: Andreas Andrikopoulos (PhD) is a Lecturer (adjunct) in the Department of Financial and Management Engineering at the University of the Aegean, Greece, where he teaches simulation methods in finance and financial econometrics. His research interests and published work focus on intangible assets management, intellectual capital reporting and real options techniques on investment appraisal. He is currently working on behavioural models of equity valuation and agency theory. Epaminondas Koronis is a Business Consultant and a doctoral researcher at Warwick Business School, University of Warwick, UK. His research focuses on the construction of organisational images in the mass media,