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Branding capabilities and SME performance in an emerging market: The moderating effect of brand regulations

Raphael Odoom (Department of Marketing and Entrepreneurship, University of Ghana Business School , Accra, Ghana)
George Cudjoe Agbemabiese (Department of Marketing, University of Professional Studies Accra , Accra, Ghana) (Putra Business School, University of Putra , Putra, Malaysia)
Thomas Anning-Dorson (Department of Marketing and Entrepreneurship, University of Ghana Business School , Accra, Ghana)
Priscilla Mensah (Department of Marketing and Entrepreneurship, University of Ghana Business School , Accra, Ghana)

Marketing Intelligence & Planning

ISSN: 0263-4503

Article publication date: 6 May 2017

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1413

Abstract

Purpose

The purpose of this paper is to test the effect of brand regulations on the relationship between enterprises’ branding capabilities (internal and external) and performance. It also examines the hypothesized relationship effects across manufacturing and service-based enterprises.

Design/methodology/approach

The study uses data from 384 small- and medium-sized enterprises (SMEs) within an emerging market setting. Moderated hierarchical regression was used to examine the theoretical interrelationships between branding capabilities and enterprise performance within the boundaries of regulations.

Findings

Results from the study suggest that both internal and external branding capabilities positively affect enterprise performance. However, the effect is confounded as brand regulations attenuate the relationship between enterprises’ branding capabilities and performance. Varying outcomes across manufacturing and service-based enterprises are also assessed.

Originality/value

The study suggests that policy makers should review regulations on businesses, particularly those relating to the small business sector. Regulations that ameliorate activities of SMEs should be implemented to promote existing enterprises, and attract new ones for industrialization in emerging markets. The findings provide evidence for issues of potential research and managerial interest, with implications for both policy makers, small business owners and the academic community.

Keywords

Citation

Odoom, R., Agbemabiese, G.C., Anning-Dorson, T. and Mensah, P. (2017), "Branding capabilities and SME performance in an emerging market: The moderating effect of brand regulations", Marketing Intelligence & Planning, Vol. 35 No. 4, pp. 473-487. https://doi.org/10.1108/MIP-08-2016-0138

Publisher

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Emerald Publishing Limited

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