Antecedents and consequences of brand-oriented companies

Abstract

Purpose

Building a strong brand is an important way to build a competitive advantage in the marketplace. Brand-oriented companies regard their brands as strategic resources, and they create value and increase competitiveness by building a strong brand. However, studies on how companies become brand-oriented and how brand orientation influences brand performance are still rather limited. Therefore, the purpose of this paper is to propose a theoretical model explaining what factors contribute to brand orientation, as well as the impact of brand orientation.

Design/methodology/approach

Questionnaire surveys were distributed to branding companies in Taiwan. The sample data of 106 branding companies were collected in order to test the theoretical model using partial least squares (PLS).

Findings

The empirical results showed that organizational resources (product differentiation capability), organizational structure (cross-function departmental integration), and organizational culture (members' organizational identification and long-term remuneration criteria) could facilitate the building of brand-oriented companies. It was also found that a higher level of brand orientation contributed to better brand performance.

Practical implications

According to this research, corporate managers can understand how to build brand-oriented companies by shaping their organizational context. In other words, if companies want to become brand-oriented, they should build product differentiation capabilities, promote cross-functional integration among departments, and develop an organizational culture with high organizational members' identification and long-term remuneration criteria.

Originality/value

This paper is the first study to propose some antecedents of brand-oriented companies based on the organizational context perspective. The empirical results of this study illustrate how companies can become brand-oriented by arranging their organizational context, as well as the impact of brand orientation on brand performance.

Citation

Huang, Y.-T. and Tsai, Y.-T. (2013), "Antecedents and consequences of brand-oriented companies", European Journal of Marketing, Vol. 47 No. 11/12, pp. 2020-2041. https://doi.org/10.1108/EJM-07-2011-0371