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Article
Publication date: 3 May 2016

Saku Hirvonen, Tommi Laukkanen and Jari Salo

The purpose of this study is to examine the relationship between brand orientation and business growth in business-to-business (B2B) small- and medium-sized enterprises (SMEs)…

3124

Abstract

Purpose

The purpose of this study is to examine the relationship between brand orientation and business growth in business-to-business (B2B) small- and medium-sized enterprises (SMEs). The authors also explore whether this relationship is moderated by internal firm-related factors (firm age, firm size) and/or external market-related factors (market life cycle, industry type).

Design/methodology/approach

The authors develop and empirically test a conceptual model using data from 396 B2B SMEs operating in Finland. Structural equation modeling is used for testing the research hypotheses.

Findings

Brand orientation contributes to business growth via two indirect paths, the first one going through brand performance and the second one going through brand performance and customer relationship performance. However, although the effects are positive, the results reveal that the regression coefficients are relatively small, implying only a limited impact of brand orientation on growth among B2B SMEs. The results further suggest that firm age, firm size and industry type moderate the brand performance–business growth relationship, whereas market life cycle moderates the effect of brand orientation on brand performance.

Research limitations/implications

Future research could extend this study by examining brand orientation in industrial markets simultaneously with alternative strategic orientations, such as market, technology and innovation orientation. New moderator variables should also be considered, such as market or technological turbulence. Furthermore, given that this study uses a cross-sectional data set, it is recommended that future research should attempt to test the model using longitudinal data sets.

Practical implications

B2B SMEs are able to gain business growth through developing a strong brand. However, brand orientation per se appears to be of limited relevance for such an endeavor. Consequently, managers of small industrial firms should consider brand orientation only with, and in comparison to, alternative strategic orientations.

Originality/value

Brand orientation has been very rarely examined from the perspective of B2B firms or that of SMEs. Interestingly, the findings indicate that the performance benefits of brand orientation seem to be smaller among B2B SMEs than what earlier research would imply. The analysis of moderation effects offers additional insights into whether there are differences between industrial SMEs as to the relevance of brand orientation.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 20 March 2017

Timo Muhonen, Saku Hirvonen and Tommi Laukkanen

The purpose of this paper is to examine the performance effects of brand identity in small- and medium-sized enterprises (SMEs).

5550

Abstract

Purpose

The purpose of this paper is to examine the performance effects of brand identity in small- and medium-sized enterprises (SMEs).

Design/methodology/approach

The authors examine whether brand identity mediates the relationship between brand orientation and brand performance, and further, whether brand performance leads to better financial performance. The authors also study whether these performance effects are moderated by customer type and industry type. Differing from earlier research, this study analyzes brand identity through its constituent components: brand values, brand vision and brand positioning. The data include altogether 721 effective responses from Finnish SMEs. Structural equation modeling is used for testing the research hypotheses.

Findings

Brand positioning and brand vision have a direct positive effect on brand performance, which in turn, positively affects financial performance. Brand orientation drives the components of brand identity. Importantly, there is variation in some of the relationships between brand orientation, brand values, brand vision and brand positioning across business-to-business firms and business-to-customer firms, and across firms in service industries and in production industries.

Research limitations/implications

The research is based on a single-country sample. Including additional factors for the model with the potential to moderate the described relationships is also called for. Future research could also consider new potential brand identity components currently not addressed in the paper.

Originality/value

This paper contributes to the literature by increasing the knowledge of SME branding.

Details

Journal of Product & Brand Management, vol. 26 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 29 June 2017

Muhammad Anees-ur-Rehman, Saila Saraniemi, Pauliina Ulkuniemi and Pia Hurmelinna-laukkanen

The purpose of this paper is to learn how strategic hybrid orientation – constructed from brand and market orientations – is related to the brand awareness, brand credibility, and…

1559

Abstract

Purpose

The purpose of this paper is to learn how strategic hybrid orientation – constructed from brand and market orientations – is related to the brand awareness, brand credibility, and financial performance of business-to-business (B2B) small- and medium-sized enterprises (SMEs).

Design/methodology/approach

The questionnaire was used in a survey to collect data from 250 Finnish B2B SMEs. The sampled firms were categorized into four clusters according to a two-by-two matrix, and their relationships with the brand performance outcomes were examined using one-way ANOVA and multiple regression.

Findings

The results indicate that strategic hybrid orientation is positively related to all three dimensions of brand performance, showing that two dissimilar orientations can complement each other in improving brand performance outcomes. However, the strength of complementary interaction seems to vary depending on the degree to which brand- and market-oriented attributes dominate in a firm’s strategy.

Originality/value

This is one of the first studies to provide empirical evidence to support the concept of strategic hybrid orientation for branding in B2B SMEs. This study aims to contribute to existing research on SME branding by capitalizing on B2B branding and strategic management literatures.

Details

Journal of Small Business and Enterprise Development, vol. 24 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 28 October 2013

Tommi Laukkanen, Gábor Nagy, Saku Hirvonen, Helen Reijonen and Mika Pasanen

The present study sheds light on the role of strategic orientations (SOs) in explaining business growth. The purpose of this paper is to examine how different SOs, namely learning…

4933

Abstract

Purpose

The present study sheds light on the role of strategic orientations (SOs) in explaining business growth. The purpose of this paper is to examine how different SOs, namely learning orientation, entrepreneurial orientation, market orientation and brand orientation simultaneously affect business performance measured with brand performance, market performance and business growth in SME context and whether these effects vary across countries.

Design/methodology/approach

An extensive data set of 1,120 effective responses is collected from two European countries, namely Hungary, representing a post socialist rapidly growing market, and Finland with a stable, highly developed and competitive economy. A multigroup moderation analysis is conducted. Confirmatory factor analysis is used in testing measurement invariance, subsequently followed by structural equation modeling procedure used in testing research hypotheses developed on the basis of a literature review.

Findings

The results show that entrepreneurial orientation, market orientation and brand orientation have a positive effect on business growth in SMEs in both Hungary and Finland through brand and market performance. With regard to learning orientation, a positive yet somewhat weak effect on growth is found only in the Hungarian sample. The moderation analysis reveals that country moderates several of the hypothesized paths from SOs to business performance.

Originality/value

Prior studies on SOs have mainly focussed on single orientations at any given time. However, researchers increasingly argue that many firms are better off if they build their strategies on multiple SOs. To the best of the authors’ knowledge, this study is one of the first empirical studies to address multiple (four) SOs in the same research model. Furthermore, little is known about if and how the performance effects of different SOs vary across countries.

Details

International Marketing Review, vol. 30 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 11 November 2013

Yen-Tsung Huang and Ya-Ting Tsai

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…

2557

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.

Details

European Journal of Marketing, vol. 47 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 13 May 2014

Helen Reijonen, Szandra Párdányi, Sasu Tuominen, Tommi Laukkanen and Raija Komppula

The purpose of this paper is to examine how SMEs with varying growth intentions differ from each other with regard to market orientation and brand orientation. Both of these…

1435

Abstract

Purpose

The purpose of this paper is to examine how SMEs with varying growth intentions differ from each other with regard to market orientation and brand orientation. Both of these strategic orientations are seen to lead to enhanced market performance. Consequently, the authors investigate whether those small firms that regard growth as an important goal have adopted market or brand orientation.

Design/methodology/approach

Responses from 492 SMEs were analysed. They were clustered into four groups according to their growth intentions. These groups included firms that have low growth intention, capital adequacy growth intention, expansion growth intention and high growth intention. ANOVA was used to explore whether these groups differed in their market or brand orientation.

Findings

The results indicate that the higher growth intention group the SME belonged to the more market and brand oriented it is. The biggest differences between the SMEs were found with regards to brand orientation.

Research limitations/implications

The findings suggest that SMEs have acknowledged the positive effect of market and brand orientations on firm growth, thus highlighting the importance of supporting growth-oriented SMEs in their quest to become more market or brand oriented.

Originality/value

The study sheds more light on the little researched themes of market and brand orientations in the context of SMEs. It also offers insights into how growth intentions affect the adoption of different strategic orientations.

Details

Journal of Small Business and Enterprise Development, vol. 21 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 21 January 2022

Amber Sayal and Saikat Banerjee

Small and medium enterprises (SMEs) of emerging economies play a key role in driving a country’s economic development. Business-to-business (B2B) SMEs of emerging economies play a…

Abstract

Purpose

Small and medium enterprises (SMEs) of emerging economies play a key role in driving a country’s economic development. Business-to-business (B2B) SMEs of emerging economies play a key role in driving a country’s economic development. Past researchers have recognized that such impacts are simply magnified by B2B entrepreneurs. However, the performance of B2B SMEs and the contributory factors behind such performance has got limited attention. This study aims to explore factors impacting the performance of B2B SMEs of emerging economies as viewed by SME owner-manager.

Design/methodology/approach

In this study, we have taken Indian B2B SMEs as our focal point of study. Primary data has been collected from the owner-manager of auto component SMEs of India. This study has examined direct and indirect (mediating) effects of predictors on outcome variables. In this study, structural equation modelling was used through AMOS 22 and the default method-maximum likelihood for estimating the model.

Findings

The result shows that entrepreneurial orientation (EO), growth orientation (GO) and market orientation (MO) directly impact the performance of B2B SMEs. It also reveals that brand orientation (BO) mediates the relationship between EO, GO and MO and performance for B2B SMEs. The result advocates that for B2B SMEs operating in emerging economies, being brand-oriented is a prominent strategic move for sustainable performance.

Originality/value

The current empirical research to bridge the research gap in the context of B2B SMEs from emerging economies by exploring important factors, propose their impact on the performance of B2B SMEs and empirically test those hypothesized relationships. This study deciphers that being brand-oriented impacts the entrepreneurial spirit, growth objectives and market readiness of the B2B SMEs and, in turn, influences the performance of B2B SMEs. The study advocates that B2B SMEs from emerging economies should adopt a BO approach and they should invest in the brand-building process.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 24 no. 1
Type: Research Article
ISSN: 1471-5201

Keywords

Article
Publication date: 4 November 2013

Riza Casidy

The purpose of this paper is to examine the relationship between perceived brand orientation (PBO), satisfaction, loyalty, and post-enrolment communication behaviour in the…

2219

Abstract

Purpose

The purpose of this paper is to examine the relationship between perceived brand orientation (PBO), satisfaction, loyalty, and post-enrolment communication behaviour in the Australian higher education sector.

Design/methodology/approach

Two hundred and fifty-eight questionnaires were completed by undergraduate students of a particular university in Australia. Structural equation modeling was employed in this study to examine the associations between the constructs.

Findings

This study provides empirical evidence that PBO has a positive and significant relationship with all dependent variables. The research reveals that students' perception of a university's brand orientation is significantly related to satisfaction, loyalty, and post-enrolment communication behaviour.

Research limitations/implications

The findings may guide the key decision makers in higher education institutions to understand the importance of brand orientation in their corporate strategy to enhance satisfaction, loyalty, and positive WOM, which can be used to differentiate themselves from other institutions in the highly competitive education market.

Originality/value

Past researchers have not looked into the dynamic relationships between PBO, satisfaction, loyalty, and post-enrolment communication behaviour, and hence research is to be called for in this area. The paper is the first to examine brand orientation from the perspective of the students and provide higher education institutions with recommendations to improve service quality through brand orientation.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 25 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 9 November 2012

Jody Evans, Kerrie Bridson and Ruth Rentschler

While the body of work exploring brand orientation has grown, there has been a general failure to build on extant research and generate a holistic conceptualization of brand…

4208

Abstract

Purpose

While the body of work exploring brand orientation has grown, there has been a general failure to build on extant research and generate a holistic conceptualization of brand orientation. This paper aims to develop a model of the key drivers, impediments and manifestations of brand orientation in a museum context.

Design/methodology/approach

A collective case study design was used, consisting of key informant interviews using a semi‐structured interview protocol and analysis of institutional documents and observational research. Interviews took place with well‐known museums across three countries: the UK, the USA and Australia. This paper demonstrates the richness of qualitative case studies as a method of theory building and as a precursor to further empirical research.

Findings

The case study findings reveal both a philosophical and behavioral aspect of brand orientation. Thus, six attributes are presented that include brand orientation as an organizational culture and compass for decision‐making and four brand behaviors (distinctiveness, functionality, augmentation and symbolism). The conceptual model also depicts the critical antecedents to brand orientation in a museum context.

Research limitations/implications

This study provides a foundation for future brand research by offering a holistic conceptualization of brand orientation and identifying the primary antecedents in a museum context. Future research may wish to empirically establish a valid and reliable scale of brand orientation and examine its explanatory potential. Future research may also consider other contexts to provide further insight into the drivers and inhibitors of brand orientation.

Practical implications

If organizations seek to establish a strong brand orientation they must devote resources to establishing the brand as a dominant organizational philosophy that guides decision‐making. In addition, brand‐oriented organizations must establish the brand as a distinctive asset that communicates relevance and accessibility and invest in augmenting initiatives that enable the organization to connect with customers on a personal and emotional level.

Originality/value

Using an exploratory method the authors are able to reconcile a number of approaches to brand orientation and provide a conceptualization that incorporates the philosophical and behavioral approaches to business orientations. Museums face substantial resource constraints, competing needs of multiple stakeholders and increasing market turbulence. If museums can achieve such significant organizational change then the sector presents an interesting exemplar for many other non‐profit organizations.

Details

European Journal of Marketing, vol. 46 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 February 2016

Jing Zhang, Yanxin Jiang, Rizwan Shabbir and Miao Zhu

The paper aims to explore how brand orientation impacts brand equity via internal branding, presented brand, word-of-mouth and customer experience from stakeholder interaction…

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Abstract

Purpose

The paper aims to explore how brand orientation impacts brand equity via internal branding, presented brand, word-of-mouth and customer experience from stakeholder interaction perspective in industrial services context. Brand orientation has emerged as an attractive business philosophy for industrial service companies who believe that brand plays an influential role in delivering customer value and improving firm’s performance. However, the impact of brand orientation upon brand equity is not clear yet, and the active roles of multiple stakeholders in co-creating brand equity are largely neglected in business-to-business (B2B) branding literature.

Design/methodology/approach

A questionnaire survey was conducted among 258 pairs of firms located in mainland China. A total of nine research hypotheses related to how brand orientation impacts B2B service brand equity were examined by structural equation modeling technique.

Findings

The research findings indicate: a company with high level of brand orientation will both actively communicate its brand to customers and implement internal branding among employees; internal branding enhances willingness and skills of service employees so that they can provide customers with excellent service experience, which will lead to positive word-of-mouth; effective brand communication, pleasant customer experience and favorable word-of-mouth can result in positive brand association in the mind of customers and finally build up corporate brand equity.

Research limitations/implications

The major limitation of this paper is that some other potential stakeholders and additional interactive processes among organization, employees and customers, which have potential to impact brand equity, are not included in the model.

Originality/value

This study makes theoretical contribution by addressing the gaps in the branding literature with respect to industrial services context and stakeholder interaction perspective. It also provides practical implications for B2B service firms as to how to develop a strong brand by implementing brand orientation within the network of core stakeholders.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

1 – 10 of over 23000