Skip to main content
SpringerLink
Log in

The brand orientation-performance relationship: An examination of moderation effects

  • Original Article
  • Published:
Journal of Brand Management Aims and scope Submit manuscript

Abstract

The study examines whether the recently validated brand orientation-performance relationship is moderated by firm-related internal factors and/or market-related external factors. Six moderators are investigated namely (1) firm age, (2) firm size, (3) branding know-how, (4) customer type, (5) industry type and (6) market life cycle. Confirmatory factor analysis is used to validate the constructs and test measurement invariance. Moderation effects are examined using multigroup structural equation modeling. The data consist of 797 valid responses from Finnish small and medium-sized enterprises (SMEs). Only external factors are found to moderate the brand orientation-performance relation, whereas internal factors seem to have no moderation effects. The results show that the effect of brand orientation on brand performance is moderated by customer type and market life cycle. It is reported that the effect is greater in firms serving consumers than in other businesses, and also in firms operating in declining/stable markets than in growing markets. This is among the first studies to empirically examine the performance effects of brand orientation in relation to moderation effects. Differing from most earlier papers, the present study examines brand orientation in the context of SMEs. The results have implications for both practitioners and researchers.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1

Similar content being viewed by others

References

  • Aaker, D.A. (1996) Measuring brand equity across products and markets. California Management Review 38 (3): 102–120.

    Article  Google Scholar 

  • Abimbola, T. and Kocak, A. (2007) Brand, organization identity and reputation: SMEs as expressive organizations: A resources-based perspective. Qualitative Market Research: An International Journal 10 (4): 416–430.

    Article  Google Scholar 

  • Ailawadi, K.L., Lehmann, D.R. and Neslin, S.A. (2003) Revenue premium as an outcome measure of brand equity. Journal of Marketing 67 (4): 1–17.

    Article  Google Scholar 

  • Armstrong, J.S. and Overton, T.S. (1977) Estimating nonresponse bias in mail surveys. Journal of Marketing Research 14 (3): 396–402.

    Article  Google Scholar 

  • Bamiatzi, V. and Hall, G. (2009) Firm versus sector effects on profitability and growth: The importance of size and interaction. International Journal of the Economics of Business 16 (2): 205–220.

    Article  Google Scholar 

  • Baumgarth, C. (2010) ‘Living the brand’: Brand orientation in the business-to-business sector. European Journal of Marketing 44 (5): 653–671.

    Article  Google Scholar 

  • Bendixen, M., Bukasa, K.A. and Abratt, R. (2004) Brand equity in the business-to-business market. Industrial Marketing Management 33 (5): 371–380.

    Article  Google Scholar 

  • Berry, L.L. (2000) Cultivating service brand equity. Journal of Academy of Marketing Science 28 (1): 128–137.

    Article  Google Scholar 

  • Berthon, P., Ewing, M.T. and Napoli, J. (2008) Brand management in small to medium-sized enterprises. Journal of Small Business Management 46 (1): 27–45.

    Article  Google Scholar 

  • Beverland, M., Napoli, J. and Lindgreen, A. (2007) Industrial global brand leadership: A capabilities view. Industrial Marketing Management 36 (8): 1082–1093.

    Article  Google Scholar 

  • Brïdson, K. and Evans, J. (2004) The secret to a fashion advantage is brand orientation. International Journal of Retail & Distribution Management 32 (8): 403–411.

    Article  Google Scholar 

  • Byrne, B. (2010) Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming. New York, NY: Routledge.

    Google Scholar 

  • Centeno, E., Hart, S. and Dinnie, K. (2012) The five phases of SME brand-building. Journal of Brand Management, advance online publication 14 September, doi: 10.1057/bm.2012.49.

  • Cheung, G.W. and Rensvold, R.B. (2002) Evaluating goodness-of-fit indexes for testing measurement invariance. Structural Equation Modeling 9 (2): 233–255.

    Article  Google Scholar 

  • Churchill, N.C. and Lewis, V.L. (1983) The five stages of small business growth. Harvard Business Review 61 (3): 30–50.

    Google Scholar 

  • Day, G.S. (1994) The capabilities of market-driven organizations. Journal of Marketing 58 (4): 37–52.

    Article  Google Scholar 

  • De Chernatony, L. (1999) Brand management through narrowing the gap between brand identity and brand reputation. Journal of Marketing Management 15 (1–3): 157–179.

    Article  Google Scholar 

  • De Chernatony, L. and Dall'Olmo Riley, F. (1999) Experts’ views about defining services brands and the principles of services branding. Journal of Business Research 46 (2): 181–192.

    Article  Google Scholar 

  • De Chernatony, L. and Segal-Horn, S. (2003) The criteria for successful services brands. European Journal of Marketing 37 (7/8): 1095–1118.

    Article  Google Scholar 

  • Donaldson, L. (2001) The Contingency Theory of Organizations. Thousand Oaks, CA: Sage.

    Book  Google Scholar 

  • Egan, J. (2008) Relationship Marketing: Exploring Relational Strategies in Marketing, 3rd edn. Essex, UK: Prentice-Hall.

    Google Scholar 

  • Erdem, T. and Swait, J. (1998) Brand equity as a signaling phenomenon. Journal of Consumer Psychology 7 (2): 131–157.

    Article  Google Scholar 

  • Fornell, C. and Larcker, D.F. (1981) Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18 (1): 39–50.

    Article  Google Scholar 

  • Gilmore, A., Carson, D. and Grant, K. (2001) SME marketing in practice. Marketing Intelligence & Planning 19 (1): 6–11.

    Article  Google Scholar 

  • Gilmore, A., Carson, D., O'Donnell, A. and Cummins, D. (1999) Added value: A qualitative assessment of SME marketing. Irish Marketing Review 12 (1): 27–35.

    Google Scholar 

  • Gromark, J. and Melin, F. (2011) The underlying dimensions of brand orientation and its impact on financial performance. Journal of Brand Management 18 (6): 394–410.

    Article  Google Scholar 

  • Hair, J.F., Black, W.C., Babin, B.J. and Anderson, R.E. (2010) Multivariate Data Analysis, 7th edn. Upper Saddle River, NJ: Prentice-Hall.

    Google Scholar 

  • Hankinson, P. (2001) Brand orientation in the charity sector: A framework for discussion and research. International Journal of Nonprofit and Voluntary Sector Marketing 6 (3): 231–242.

    Article  Google Scholar 

  • Horan, G., O'Dwyer, M. and Tiernan, S. (2011) Exploring management perspectives of branding in service SMEs. Journal of Services Marketing 25 (2): 114–121.

    Article  Google Scholar 

  • Huber, G.P. (1991) Organizational learning: The contributing processes and the literatures. Organizational Science 2 (1): 88–115.

    Article  Google Scholar 

  • Joachimsthaler, E. and Aaker, D.A. (1997) Building brands without mass media. Harvard Business Review 75 (1): 39–50.

    Google Scholar 

  • Juntunen, M., Saraniemi, S., Halttu, M. and Tähtinen, J. (2010) Corporate brand building in different stages of small business growth. Journal of Brand Management 18 (2): 115–133.

    Article  Google Scholar 

  • Kay, M.J. (2006) Strong brands and corporate brands. European Journal of Marketing 40 (7/8): 742–760.

    Article  Google Scholar 

  • Keller, K.L. (1993) Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing 57 (1): 1–22.

    Article  Google Scholar 

  • Keller, K.L. (2000) The brand report card. Harvard Business Review 78 (1): 147–157.

    Google Scholar 

  • Keller, K.L. (2008) Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Upper Saddle River, NJ: Pearson Education.

    Google Scholar 

  • Kohli, A.K. and Jaworski, B.J. (1990) Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing 54 (2): 1–18.

    Article  Google Scholar 

  • Krake, F.B.G.J.M. (2005) Successful brand management in SMEs: A new theory and practical hints. Journal of Product & Brand Management 14 (4): 228–238.

    Article  Google Scholar 

  • Kuhn, K.-A.L., Alpert, F. and Pope, N.K.L.I. (2008) An application of Keller's brand equity model in a B2B context. Qualitative Market Research: An International Journal 11 (1): 40–58.

    Article  Google Scholar 

  • Lassar, W., Mittal, B. and Sharma, A. (1995) Measuring customer-based brand equity. Journal of Consumer Marketing 12 (4): 11–19.

    Article  Google Scholar 

  • Leek, S. and Christodoulides, G. (2011) A literature review and future agenda for B2B branding: Challenges of branding in a B2B context. Industrial Marketing Management 40 (6): 830–837.

    Article  Google Scholar 

  • Leek, S. and Christodoulides, G. (2012) A framework for brand value in B2B markets: The contributing role of functional and emotional components. Industrial Marketing Management 41 (1): 106–114.

    Article  Google Scholar 

  • Martín-Tapia, I., Aragón-Correa, J.A. and Rueda-Manzanares, A. (2010) Environmental strategy and exports in medium, small and micro-enterprises. Journal of World Business 45 (3): 266–275.

    Article  Google Scholar 

  • McDonald, M.H.B., de Chernatony, L. and Harris, F. (2001) Corporate marketing and services brands. European Journal of Marketing 35 (3/4): 335–352.

    Article  Google Scholar 

  • Merrilees, B. (2005) Radical brand evolution: A case-based framework. Journal of Advertising Research 45 (2): 201–210.

    Article  Google Scholar 

  • Merrilees, B. (2007) A theory of brand-led SME new venture development. Qualitative Market Research: An International Journal 10 (4): 403–415.

    Article  Google Scholar 

  • Mullins, J.W., Walker, O.C. and Boyd, H.W. (2008) Marketing Management: A Strategic Decision-Making Approach, 6th edn. New York, NY: McGraw-Hill.

    Google Scholar 

  • Mzungu, S.D.M., Merrilees, B. and Miller, D. (2010) Brand management to protect brand equity: A conceptual model. Journal of Brand Management 17 (8): 605–617.

    Article  Google Scholar 

  • Narver, J.C. and Slater, S.F. (1990) The effect of a market orientation on business profitability. Journal of Marketing 54 (4): 20–35.

    Article  Google Scholar 

  • Ohnemus, L. (2009) B2B branding: A financial burden for shareholders? Business Horizons 52 (2): 159–166.

    Article  Google Scholar 

  • Ojasalo, J., Nätti, S. and Olkkonen, R. (2008) Brand building in software SMEs: An empirical study. Journal of Product & Brand Management 17 (2): 92–107.

    Article  Google Scholar 

  • Reijonen, H. (2010) Do all SMEs practise same kind of marketing? Journal of Small Business and Enterprise Development 17 (2): 279–293.

    Article  Google Scholar 

  • Reijonen, H., Laukkanen, T., Komppula, R. and Tuominen, S. (2012) Are growing SMEs more market-oriented and brand-oriented? Journal of Small Business Management 50 (4): 699–716.

    Article  Google Scholar 

  • Sinkula, J.M. (1994) Market information processing and organizational learning. Journal of Marketing 58 (1): 35–45.

    Article  Google Scholar 

  • Steenkamp, J.-B.E.M. and Baumgartner, H. (1998) Assessing measurement invariance in cross-national consumer research. Journal of Consumer Research 25 (1): 78–90.

    Article  Google Scholar 

  • Urde, M. (1994) Brand orientation – A strategy for survival. Journal of Consumer Marketing 11 (3): 18–32.

    Article  Google Scholar 

  • Urde, M. (1999) Brand orientation: A mindset for building brands into strategic resources. Journal of Marketing Management 15 (1–3): 117–133.

    Article  Google Scholar 

  • Urde, M., Baumgarth, C. and Merrilees, B. (2013) Brand orientation and market orientation – From alternatives to synergy. Journal of Business Research 66 (1): 13–20.

    Article  Google Scholar 

  • Yoo, B. and Donthu, N. (2001) Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research 52 (1): 1–14.

    Article  Google Scholar 

  • Wong, H.Y. and Merrilees, B. (2005) A brand orientation typology for SMEs: A case research approach. Journal of Product & Brand Management 14 (3): 155–162.

    Article  Google Scholar 

  • Wong, H.Y. and Merrilees, B. (2008) The performance benefits of being brand-orientated. Journal of Product & Brand Management 17 (6): 372–383.

    Article  Google Scholar 

  • Wood, L. (2000) Brands and brand equity: Definition and management. Management Decision 38 (9): 662–669.

    Article  Google Scholar 

  • Zeithaml, V.A., Varadarajan, P. and Zeithaml, C.P. (1988) The contingency approach: Its foundations and relevance to theory building and research in marketing. European Journal of Marketing 22 (7): 37–64.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Business, University of Eastern Finland, P.O. Box 111, Joensuu, FI-80101, Finland

    Saku Hirvonen, Tommi Laukkanen & Helen Reijonen

Authors
  1. Saku Hirvonen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Tommi Laukkanen
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Helen Reijonen
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Saku Hirvonen.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Hirvonen, S., Laukkanen, T. & Reijonen, H. The brand orientation-performance relationship: An examination of moderation effects. J Brand Manag 20, 623–641 (2013). https://doi.org/10.1057/bm.2013.4

Download citation

  • Received:

  • Revised:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/bm.2013.4

Keywords

Search

Navigation