Examining the Role of Employee-Brand Value Congruence in Internal Brand Management

Abstract

Given the influential role brands play in shaping customers’ perceptions of service quality, many service companies leverage the power of brands to develop a competitive advantage (Berry 2000). However, to achieve brand success, service organizations need to ensure that the actual brand experience, as reflected through employees’ attitudes and behaviors, are consistent with the brand promise that are set through external branding practices. Recent research has highlighted the importance of brand value congruence in engendering employee brand building behaviors (Chang et al. 2012; Morhart et al. 2009). The rationale underpinning the value congruence effect lies in the role of values in guiding individuals’ attitudes and behaviors. For example, people are more attracted to others with similar values and have greater intentions to form and maintain relationships with similar people to reinforce their self-esteem (Smith 1998; Zhang and Bloemer 2008). Thus, we argue that, when employees perceive their value systems are consistent with the brand values, they are more likely to deliver brand performance. However, the theoretical foundation and comprehensive measurement with respect to employee perceived brand value congruence, as well as the outcomes of this construct is lacking. This study aims to fill this literature gap and offer both theoretical and managerial insights regarding internal branding initiatives that can foster employee – brand value congruence. Of particular significance in this examination is afforded through a new approach to measuring brand value congruence.

Previous studies examining value fit commonly adopt reflective measures (e.g., O’Reilly and Chatman 1986) or profile matching approaches (e.g., Cable and Edwards 2004) which are similar to formative measures. In order to develop a holistic view of employee perceived brand value congruence, we followed Diamantopoulos and Winklhofer (2001) and constructed a Multiple Indicators Multiple Causes (MIMIC) model that combines both reflective and formative measures. With responses from 232 service employees, our MIMC model with four reflective items and 18 formative items achieves a good fit (χ2 = 47.6, df = 36, CFI = .997, RMSEA = .037), suggesting high measurement validity. We also identify the contribution and significance of each formative indicator. Furthermore, through a two-step structural equation model, we demonstrate the significant impact of employee perceive brand value congruence on employee brand-aligned attitudes and behaviors (.78 for brand allegiance, .90 for brand consistent behaviors, and .91 for brand endorsement). The substantial predicting power of our model strongly supports the crucial role of employee perceived brand value congruence in engendering employee brand performances. Thus, it is advised that service organizations should seek to hire employees who possess similar values to those of the specific brand. They should also focus on developing and enhancing such value congruence through internal branding initiatives. Futures studies are encouraged to adopt this new measurement approach as it affords an objective and robust assessment of employees fit with the brand.