Branding and outcomes in small and medium-sized enterprises (SMEs): a resource–capability approach

Abstract

The study investigates the relationships of enterprise resources and branding capabilities with branding efforts and branding benefits. It examines the differential effect of physical resources and branding capabilities on enterprises’ branding efforts and outcomes. Empirical data for the study were drawn from 304 small and medium-sized enterprises (SMEs) in Ghana. The hypothesized relationships were analyzed using Structural Equation Modeling. The study found that resources and capabilities possessions might not be enough to produce the optimum branding benefits for enterprises. A better result, however, emerges when these resources and capabilities are integrated with well-coordinated branding efforts of the enterprises. The study offers several implications for managers of small businesses based on the findings of the study.

Cette étude a exploré les relations entre, d'une part, les ressources de l'entreprise et les stratégies de marque, et d'autre part, les efforts de promotion de la marque et les avantages conférés par la marque. Elle a examiné l'effet différentiel des ressources physiques et des stratégies de marque sur les efforts des entreprises pour promouvoir leur marque et sur leurs résultats. Des données empiriques pour l’étude ont été obtenues de 304 PME au Ghana. Les relations hypothétiques ont été analysées à travers une modélisation à équations structurelles. L’étude a révélé que les ressources et la possession de compétences pourraient ne pas être suffisantes pour produire l'image de marque optimale des entreprises. Cependant, un meilleur résultat est obtenu lorsque les ressources et les compétences sont intégrées aux stratégies de marque bien coordonnées des entreprises. Les résultats de l’étude ont plusieurs implications pour les directeurs des petites entreprises.

Keywords:

• branding
• small and medium-sized enterprise
• SMEs
• emerging market
• RBV
• capability

Mots-clés:

• stratégie de marque
• petite et moyenne entreprise
• PME
• marché émergent
• AFR, compétence

Acknowledgements

The authors wish to acknowledge DANIDA's Building Stronger Universities – Growth and Employment Platform (BSU-GEP) for their support.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Raphael Odoom

Raphael Odoom is a fellow of the Development Economics Research Group (DERG) at the University of Copenhagen and currently with University of Ghana Business School. His research interests are in the areas of marketing in small businesses, branding, social media and general consumer studies.

Bedman Narteh

Bedman Narteh is a professor and head of marketing, at the University of Ghana Business School. His research interests lie in services marketing, branding, knowledge management and consumer marketing.

John Rand

John Rand is a professor at the Department of Economics and co-director of the DERG at the University of Copenhagen. His research interest lies in the area of development economics.