Despite the perennial need to understand and manage uncertainty in international business, there is no comprehensive framework that incorporates different types of uncertainty, their antecedents and ...outcomes, and the different coping strategies used by managers and their outcomes. This makes it difficult for international business managers to understand the types of uncertainty in their businesses and develop appropriate strategies to deal with it effectively, especially during times such as the ongoing Covid-19 pandemic. This paper uses an extensive review of the international business literature to address the above research gap by identifying the different types of uncertainty, their antecedents and outcomes, the coping strategies used to mitigate their impact, and the consequences of these actions. The authors also use examples from the current Covid-19 crisis to assess the firms’ responses and their consequences. The paper concludes with some implications for international business managers and directions for future research.
One of the main challenges for small and medium enterprises (SMEs) is how to leverage their R&D activities in the international markets but current literature offers mixed evidence and inconclusive ...models in this regard. This paper addresses this gap by exploring the role of international R&D activities in the impact of SMEs’ technological and marketing capabilities on their performance. The authors use in-depth interviews with five Italian SMEs recognized as particularly innovative firms in their own sectors (retail intelligence, business training, shoes, food, and sportswear) to identify the factors driving the success and performance of their international R&D efforts. Findings show that SMEs’ technological and marketing capabilities have dominant and positive effects on their performance in the international markets. Besides extending the literature on the internationalization of R&D by SMEs, these findings highlight the major challenges and opportunities for the managers of internationally active SMEs.
Marketing scholars and practitioners recognize marketing resources as crucial drivers in the process by which firms develop their competitive advantages and achieve higher levels of performance. ...However, there is little agreement in the literature on what constitutes marketing resources or how these influence brand or firm performance. In this editorial article, the co-editors of this special issue identify and describe three distinct research streams related to marketing resources and performance, namely relation to firm/brand environment, marketing as an organizational function and marketing resource deployment. Next, they discuss the theoretical frameworks and contributions of the seminal research articles as well as the papers included in this special issue that represent these three themes. Finally, this editorial identifies some open questions and future research directions in this important research area.
This study combines the signaling theory and dynamic marketing capabilities perspective to investigate the mediating role of product innovation in the influence of R&D expenditure and brand equity on ...marketing performance. The study shows that MNC firms are able to use R&D expenditure to improve their product innovation and market share to a greater extent compared to SME and retailer firms. However, the stronger brand equity of MNC firms may actually hurt the performance of their new products by inhibiting product innovation. The authors use regression and probit analysis to study a panel data for 1356 food brands. Overall, this research provides fresh insights into the process by which R&D expenditure and brand equity affect product innovation and marketing performance in highly competitive product categories.
Purpose
– The research practice in management research is dominantly based on structural equation modeling (SEM), but almost exclusively, and often misguidedly, on covariance-based SEM. The purpose ...of this paper is to question the current research myopia in management research, because the paper adumbrates theoretical foundations and guidance for the two SEM streams: covariance-based and variance-based SEM; and improves the conceptual knowledge by comparing the most important procedures and elements in the SEM study, using different theoretical criteria.
Design/methodology/approach
– The study thoroughly analyzes, reviews and presents two streams using common methodological background. The conceptual framework discusses the two streams by analysis of theory, measurement model specification, sample and goodness-of-fit.
Findings
– The paper identifies and discusses the use and misuse of covariance-based and variance-based SEM utilizing common topics such as: first, theory (theory background, relation to theory and research orientation); second, measurement model specification (type of latent construct, type of study, reliability measures, etc.); third, sample (sample size and data distribution assumption); and fourth, goodness-of-fit (measurement of the model fit and residual co/variance).
Originality/value
– The paper questions the usefulness of Cronbach's
α
research paradigm and discusses alternatives that are well established in social science, but not well known in the management research community. The author presents short research illustration in which analyzes the four recently published papers using common methodological background. The paper concludes with discussion of some open questions in management research practice that remain under-investigated and unutilized.
Purpose
This study aims to investigate whether users’ engagement with a social media platform is affected as they engage in non-sponsored brand-related user-generated content (UGC). The concept of ...non-sponsored brand-related UGC encapsulates various social media patterns in which individuals choose how to consume, contribute or create brand-related content with no formal brand incentive or control.
Design/methodology/approach
The study focuses on the question of how users engage with non-sponsored brand-related UGC on Instagram and assesses the influence of UGC perceived value, using partial least squares variance-based structural equation modeling.
Findings
The research shows significant and positive effects of UGC on Instagram users’ intentions to engage with the platform and the influence of UGC perceived value on UGC uses. The findings deepen the understanding of the mechanisms underlying non-sponsored brand-related UGC in consumer engagement marketing, with significant implications for brand managers and the future development of Instagram and other social media platforms.
Originality/value
The UGC functional, social and emotional values are evaluated for their effects on generating the three distinct patterns of consumer online brand-related activities (consumer, contribute and create) in the non-sponsored brand-related UGC context.
Purpose
– This paper aims to look into contemporary thinking within the brand equity paradigm, with a view to establishing avenues for further research on the drivers of brand equity formation, ...enabling a more in-depth understanding of the antecedents of brand equity and its determinants, as well as the development of an improved instrument to measure brand equity. The brand equity paradigm and its importance for marketing theory have been in the research focus for more than two decades. There is no agreement in the literature how to develop a unique measure of brand equity, neither what are the sources, drivers or determinants.
Design/methodology/approach
– The authors develop the relating conceptual study through the differentiation and integration as specific conceptual goals. The authors present a taxonomic framework of brand equity grounded on a synthesis of contemporary approaches to the theme.
Findings
– The authors identify gaps in the brand equity literature. The analysis and development of the conceptual study in this paper shall serve as beacons for future research and provide valuable theoretical insights on the determinants of brand equity formation and the development of better brand equity measurement tools.
Originality/value
– The authors synthesized contemporary approaches in the field, identified research gaps and proposed open questions that should be tackled, as well as provided avenues for future research. The authors argue that creation of a unifying brand equity theory should be based on three pillars: stakeholder value, marketing assets and brand financial performance outputs.
Purpose
– The author aims to present a model of the brand value drivers, measured by brand equity. The goal of this research is to identify the drivers, and determine how they influence brand equity ...performance in the researched industry, in order to develop a more effective brand strategy.
Design/methodology/approach
– The author studied an aggregate dataset for 739 food brands. Six predictors were controlled for (i.e. marketing investments, price, revenue, perceived quality organic and functional and brand ownership), while the impact of the brand equity drivers on brand value was estimated. The model was formulated and estimated using a robust OLS procedure. Several data sources have were in this study, such as market-based data from ACNielsen, as well as information and variable constructs using data from the Bureau Van Dijk Electronic Publishing AIDA financial statements database.
Findings
– Results suggest that marketing investment, price, revenue, brand ownership and perceived quality are highly associated with brand equity, and consequently with a higher brand value in the food industry.
Research limitations/implications
– This study has only studied one industry (food), one industry segment (enriched-food) and one country (Italy).
Originality/value
– The majority of marketing studies apply a single research approach and measures. This is the first study of brand equity that combines consumer, financial and marketing approaches. The model contributes to theory and practice in terms of suggesting which business drivers create brand value and what type of brand strategy a firm can apply in order to create brand value.
The purpose of this study is to understand the effects of the rebranding process on private label performance output, namely, on brand equity. More specifically, the study aims to investigate the ...performance of brand equity constructs (brand awareness, brand associations, perceived quality and brand loyalty) before and after the rebranding process. A questionnaire was administered to 466 shoppers, who put forth their perceptions, of the brand’s image, before and after the rebranding. When analyzed altogether, brand equity constructs have not suffered significant changes, meaning that previously existing brand equity had successfully been transferred onto the new brand; however, new brand equity was not created in the process. Consumers do still associate the private label brand image with its previous brand identity. Nevertheless, their ability to easily identify the various brand tiers was improved with the new image. Consumers associate the rebranded image with being “innovative” and “original” and describe the previous image as “inexpensive” and “trustworthy”. Brand awareness and loyalty are the factors that relate the most to consumers’ perceptions of the brand before its rebranding. This study contributes to the brand management literature by providing a new look into the under-researched problem of rebranding and brand equity, empirically validating the real-life market case.
Purpose
– This paper aims to show the effect of brand equity, marketing investment and product differentiation on price in small and medium enterprises (SMEs), multinational companies (MNCs) and ...retailers (private labels). Academics have been researching brand equity, return on investment and effects of product differentiation for many years, but there has been little work that has taken a holistic view.
Design/methodology/approach
– The author studied an aggregate data set for 735 fast-moving consumer goods (FMCG) brands, taken from Nielsen (10,282 households). Regression analysis was used in the first step, a cluster analysis in the second step of modeling procedure.
Findings
– The study suggests that brand equity, marketing investment and product differentiation are closely associated with price. Using a cluster analysis, the authors found that the premium price is significantly associated with product differentiation based on innovation and company type.
Practical implications
– The managerial implications of the models estimated by regression analysis are discussed as well as the results of the cluster analysis and possible research enhancements.
Originality/value
– The role of the value in brand performance output has not been investigated in the financial context, only in consumer or marketing mix context. Little is known about how price strategy depends on brand equity, product innovation activities or marketing investments intended to improve brand performance, neither how this strategy improves brand performance among different players in the market (retailers, SMEs and MNCs).
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