IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2022i1p519-d1017980.html
   My bibliography  Save this article

The Role of Influencing Factors on Brand Equity and Firm Performance with Innovation Culture as a Moderator: A Study on Art Education Firms in China

Author

Listed:
  • Ming Li

    (North China University of Water Resources and Electric Power, Zhengzhou 450046, China)

  • Chee Hua Chin

    (School of Business and Management, University of Technology Sarawak, Sibu 96000, Sarawak, Malaysia)

  • Shangke Li

    (North China University of Water Resources and Electric Power, Zhengzhou 450046, China)

  • Winnie Poh Ming Wong

    (School of Business and Management, University of Technology Sarawak, Sibu 96000, Sarawak, Malaysia)

  • Jun Zhou Thong

    (Faculty of Economics and Business, University Malaysia Sarawak, Kota Samarahan 94300, Sarawak, Malaysia)

  • Kang Gao

    (North China University of Water Resources and Electric Power, Zhengzhou 450046, China)

Abstract

Presently, particularly in China, the market for art education is still in the growth stage of industrial development. Nevertheless, there is a huge number of art education businesses competing for a share of China’s art education industry, which is of a very modest size. Given the evolution of the economy and innovative culture, it is of the utmost necessity to comprehend both brand equity and corporate success in the present day. This study explored the relationship between brand equity and company performance under the adjustment of innovation culture using Chinese art education businesses as the baseline study. The present study examined the relationship between the five components of brand equity that are primarily comprised of brand awareness, brand association, perceived quality, brand loyalty, brand relevance, and brand equity with the moderating impact of innovation culture. A total of 300 respondents, including art education firm managers, teachers, and other key employees, participated in the survey and WarpPLS 8.0 was used to evaluate the proposed model. Subsequently, the statistical findings revealed a significant positive relationship between the brand equity components (i.e., perceived quality and brand relevance) and a firm’s performance, while a firm’s innovation culture was discovered to moderate the said relationship. The implications of these findings are further discussed.

Suggested Citation

  • Ming Li & Chee Hua Chin & Shangke Li & Winnie Poh Ming Wong & Jun Zhou Thong & Kang Gao, 2022. "The Role of Influencing Factors on Brand Equity and Firm Performance with Innovation Culture as a Moderator: A Study on Art Education Firms in China," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
  • Handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:519-:d:1017980
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/1/519/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/1/519/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mahabubur Rahman & M. Ángeles Rodríguez-Serrano & Mary Lambkin, 2019. "Brand equity and firm performance: the complementary role of corporate social responsibility," Post-Print hal-02421283, HAL.
    2. Marian Murphy, 2002. "Organisational Change and Firm Performance," OECD Science, Technology and Industry Working Papers 2002/14, OECD Publishing.
    3. Mahabubur Rahman & M. Ángeles Rodríguez-Serrano & Mary Lambkin, 2019. "Brand equity and firm performance: the complementary role of corporate social responsibility," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 691-704, November.
    4. Johansson, Johny K. & Dimofte, Claudiu V. & Mazvancheryl, Sanal K., 2012. "The performance of global brands in the 2008 financial crisis: A test of two brand value measures," International Journal of Research in Marketing, Elsevier, vol. 29(3), pages 235-245.
    5. Dwyer, Sean & Richard, Orlando C. & Chadwick, Ken, 2003. "Gender diversity in management and firm performance: the influence of growth orientation and organizational culture," Journal of Business Research, Elsevier, vol. 56(12), pages 1009-1019, December.
    6. Wang, Hui-Ming Deanna & Sengupta, Sanjit, 2016. "Stakeholder relationships, brand equity, firm performance: A resource-based perspective," Journal of Business Research, Elsevier, vol. 69(12), pages 5561-5568.
    7. Wang, David Han-Min & Chen, Pei-Hua & Yu, Tiffany Hui-Kuang & Hsiao, Chih-Yi, 2015. "The effects of corporate social responsibility on brand equity and firm performance," Journal of Business Research, Elsevier, vol. 68(11), pages 2232-2236.
    8. Pahud de Mortanges, Charles & van Riel, Allard, 2003. "Brand Equity and Shareholder Value," European Management Journal, Elsevier, vol. 21(4), pages 521-527, August.
    9. Seggie, Steven H. & Kim, Daekwan & Cavusgil, S.Tamer, 2006. "Do supply chain IT alignment and supply chain interfirm system integration impact upon brand equity and firm performance?," Journal of Business Research, Elsevier, vol. 59(8), pages 887-895, August.
    10. Arnd Vomberg & Christian Homburg & Torsten Bornemann, 2015. "Talented people and strong brands: The contribution of human capital and brand equity to firm value," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 2122-2131, December.
    11. Ijaz Hussain & Shaohong Mu & Muhammad Mohiuddin & Rizwan Qaiser Danish & Shrafat Ali Sair, 2020. "Effects of Sustainable Brand Equity and Marketing Innovation on Market Performance in Hospitality Industry: Mediating Effects of Sustainable Competitive Advantage," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mahabubur Rahman & M. Ángeles Rodríguez-Serrano & Mary Lambkin, 2019. "Brand equity and firm performance: the complementary role of corporate social responsibility," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 691-704, November.
    2. Jalal Rajeh Hanaysha, 2023. "Exploring the Relationship between Entrepreneurial Marketing Dimensions, Brand Equity and SME Growth," IIM Kozhikode Society & Management Review, , vol. 12(1), pages 22-38, January.
    3. Rahman, Mahabubur, 2023. "The virtuous circle between green product innovation and performance: The role of financial constraint and corporate brand," Journal of Business Research, Elsevier, vol. 154(C).
    4. Mahabubur Rahman & Saqib Aziz & Mathew Hughes, 2020. "The product‐market performance benefits of environmental policy: Why customer awareness and firm innovativeness matter," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 2001-2018, July.
    5. Zeeshan Ullah, 2023. "The determinants and performance outcome of the firm's capacity to maintain customer loyalty," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 265-279, February.
    6. Mochales, Gerardo & Blanch, Javier, 2022. "Unlocking the potential of CSR: An explanatory model to determine the strategic character of CSR activities," Journal of Business Research, Elsevier, vol. 140(C), pages 310-323.
    7. Neeraj Bharadwaj & Dominique M. Hanssens & Ramesh K. S. Rao, 2020. "Corporate brand value and cash holdings," Journal of Brand Management, Palgrave Macmillan, vol. 27(4), pages 408-420, July.
    8. Pinar Basgoze & Yilmaz Yildiz & Selin Metin Camgoz, 2016. "Effect of brand value announcements on stock returns: empirical evidence from Turkey," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 1252-1269, November.
    9. Frauke Sander & Ulrich Föhl & Nadine Walter & Vera Demmer, 2021. "Green or social? An analysis of environmental and social sustainability advertising and its impact on brand personality, credibility and attitude," Journal of Brand Management, Palgrave Macmillan, vol. 28(4), pages 429-445, July.
    10. Imad Jabbouri & Omar Farooq & Rachid Jabbouri, 2024. "Economic policy uncertainty nexus with the value relevance of advertising: Evidence from an emerging market," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2342-2359, April.
    11. Shaun M. Powell, 2019. "Journal of Brand Management: year end review 2019," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 615-620, November.
    12. Fernanda Muniz & Francisco Guzmán, 2021. "Overcoming the conflicting values of luxury branding and CSR by leveraging celebrity endorsements to build brand equity," Journal of Brand Management, Palgrave Macmillan, vol. 28(3), pages 347-358, May.
    13. Luyao Zhi & Hong-Youl Ha, 2023. "Do New Luxury Hotel Promotions Harm Member Customers?," Sustainability, MDPI, vol. 15(10), pages 1-15, May.
    14. Ijaz Hussain & Shaohong Mu & Muhammad Mohiuddin & Rizwan Qaiser Danish & Shrafat Ali Sair, 2020. "Effects of Sustainable Brand Equity and Marketing Innovation on Market Performance in Hospitality Industry: Mediating Effects of Sustainable Competitive Advantage," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    15. Rahman, Mahabubur & Faroque, Anisur R. & Sakka, Georgia & Ahmed, Zafar U., 2022. "The impact of negative customer engagement on market-based assets and financial performance," Journal of Business Research, Elsevier, vol. 138(C), pages 422-435.
    16. Qiuqin He & Minglin Wang & Clara Martínez-Fuentes, 0. "Impact of corporate entrepreneurial strategy on firm performance in China," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-18.
    17. Edwin Love & Tejvir Sekhon & Tara Ceranic Salinas, 2022. "Do well, do good, and know your audience: the double-edged sword of values-based CSR communication," Journal of Brand Management, Palgrave Macmillan, vol. 29(6), pages 598-614, November.
    18. Lee, Michael T. & Raschke, Robyn L. & Krishen, Anjala S., 2022. "Signaling green! firm ESG signals in an interconnected environment that promote brand valuation," Journal of Business Research, Elsevier, vol. 138(C), pages 1-11.
    19. Cowan, Kirsten & Guzman, Francisco, 2020. "How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study," Journal of Business Research, Elsevier, vol. 117(C), pages 683-693.
    20. Camelia-Daniela Hategan & Ruxandra-Ioana Pitorac & Vasile-Petru Hategan & Carmen Mihaela Imbrescu, 2021. "Opportunities and Challenges of Companies from the Romanian E-Commerce Market for Sustainable Competitiveness," Sustainability, MDPI, vol. 13(23), pages 1-15, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:519-:d:1017980. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.