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Article
Publication date: 25 January 2022

Maryam Soleimani, Leo Paul Dana, Aidin Salamzadeh, Parisa Bouzari and Pejman Ebrahimi

This study explores the effect of internal branding on organisational financial performance and brand loyalty with the mediating role of psychological empowerment.

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Abstract

Purpose

This study explores the effect of internal branding on organisational financial performance and brand loyalty with the mediating role of psychological empowerment.

Design/methodology/approach

The data gathered from 200 Pasargad insurance employees in Iran were analysed. Structural equation modelling and R were used to evaluate the model. Financial performance was measured by four concepts (ROI, ROE, Sales growth, ROA) based on available data from March 2010 to March 2020.

Findings

The results revealed that internal branding and psychological empowerment have no significant effect on financial performance, but both have a significant positive effect on brand loyalty. Likewise, the mediating role of psychological empowerment on the subject of the impact of internal branding on brand loyalty was confirmed. Furthermore, psychological empowerment did not play a mediating role in the impact of internal branding on financial performance.

Research limitations/implications

The findings of this study could be important for managers of organisations active in the insurance industry to highlight internal branding and enhance psychological empowerment and employee brand loyalty. Moreover, managers' perception of the effective role of psychological empowerment to enhance employee brand loyalty is another practical aspect of this research.

Originality/value

Considering the mediating role of psychological empowerment to the effect of internal branding on financial performance and brand loyalty is an innovative aspect of the present study. Meanwhile, the use of R software for VB-SEM was another point to surge the value of this paper.

Details

Journal of Asian Business and Economic Studies, vol. 30 no. 2
Type: Research Article
ISSN: 2515-964X

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