Academic journal article Academy of Strategic Management Journal

Testing Branding Strategy Development Model

Academic journal article Academy of Strategic Management Journal

Testing Branding Strategy Development Model

Article excerpt

INTRODUCTION

Branding as an organization's tool for building strategic position in the market is a longterm process that could shape organization's competitive advantage (Sanya et al., 2013; Kapferer 2008). It requires the commitment of internal management of the firms to maintain consistent position in the market (Shahri, 2011). The development of branding strategy not only starts from creating a distinct logo to disseminating it but also to maintaining positive and creating memorable image of the firms (Punyatoya et al., 2014)

Branding strategy applies amongst different size of the firms i.e. SME and may create unique offering from one another. Consistent performance in building favorable brand image could also shape the firms into positive internal organizational atmosphere. Internal organization plays critical role in judging the execution of branding strategy (van Riel and van Bruggen, 2002:241). The successfulness of building favorable brand relies on not only to external audiences of the company, but also to those within internal company, particularly in judging its uses positively (Shahri 2002:51). Relevant issue in developing branding strategy within internal organization is how the innovative behavior of the business owners could influence the creation of their practical knowledge in branding strategy development (Neven, 2014).

Branding strategy as a systematically planned and implemented process of creating and maintaining a favorable unique identity and image of the firm, developed through various internal processes within the organization such as innovating the behavior, creating the knowledge of distinct brand and aligning the capability of the firm with external environment. The process of the creation and development of brand identity in the SME context that illustrates the two main stages of brand building: starting stage and development stage (Centeno et al 2013). Extant literature on brands has been relied heavily on large company brands rather than SMEs (Aaker 1996; de Chernatony and McDonald 2003; Keller 2003; Kapferrer 2004; Centeno et al 2013).

Brand building amongst SMEs, although often built in a very different context, it has been assumed that SMEs' branding strategy development may develop in a similar way to large company (Centeno et al 2013). SME brands are built from an innovative, experiment-oriented and resourceful approach, specifically, engaged in brand exploration phases where SME experimented trials and errors' risk processes that lead to commitment, creativity and willingness to learn (Centeno et al 2013). This paper proposed the testing of the relationship of the three variables namely innovative behavior, knowledge creation and dynamic capability in branding strategy development. The three-variable's was labeled as Branding Strategy Development Based On Innovative Behavior (BSD-BOIB), Branding Strategy Development Through Knowledge Creation (BSD-TKC) and Dynamic Capability In Branding Strategy Development (DC-IBSD). This paper is structured as follows: firstly, it reviews previous literature and empirical research on branding strategy development using innovative behavior, knowledge creation and dynamic capability. The paper subsequently provides the research questions; explains the research methodology adopted for the present study; provides the study findings. Last but not least, the paper discusses several conclusions that derived from the study, as well as the implications for further study.

LITERATURE REVIEW

The need to consider habits in creating favorable brands for products is as an important factor in determining the commitment to innovate the firm (Cavagnoli, 2011). Innovation reflects a process of learning such as developing a memorable brand for a firm. Innovation also reflects a process of transforming knowledge into practice for better outcome, for instance, in branding strategy development - unique ideas come through several knowledge transformations and convert them into new brand identity and brand image (Audretsch et al. …

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