IDEAS home Printed from https://ideas.repec.org/a/pal/jobman/v23y2016i3d10.1057_bm.2016.9.html
   My bibliography  Save this article

The internal branding process and financial performance in service companies: An examination of the required steps

Author

Listed:
  • Sasu Tuominen

    (University of Eastern Finland)

  • Saku Hirvonen
  • Helen Reijonen
  • Tommi Laukkanen

Abstract

The objective of this study is to test how internal branding affects financial performance in service companies. Our hypothesized model suggests that internal branding has an indirect effect on financial performance (measured in terms of turnover growth and profitability growth) through brand values adoption, organizational commitment, brand performance and market performance. Structural equation modeling is used for testing the model. The data set consisted of 124 effective responses from Finnish service companies. Importantly, differing from the majority of earlier studies, financial performance is measured with objective data. The effects of internal branding proceed sequentially from inside an organization to the outside, showing that its impact on financial performance is a result of a relatively complex process mediated by several factors. The results reveal that internal branding indirectly affects brand performance and market performance, but not financial performance.

Suggested Citation

  • Sasu Tuominen & Saku Hirvonen & Helen Reijonen & Tommi Laukkanen, 2016. "The internal branding process and financial performance in service companies: An examination of the required steps," Journal of Brand Management, Palgrave Macmillan, vol. 23(3), pages 306-326, May.
    • Handle: RePEc:pal:jobman:v:23:y:2016:i:3:d:10.1057_bm.2016.9
    DOI: 10.1057/bm.2016.9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/bm.2016.9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/bm.2016.9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    2. Usha Lenka & Damodar Suar & Pratap K.J. Mohapatra, 2010. "Soft and Hard Aspects of Quality Management Practices Influencing Service Quality and Customer Satisfaction in Manufacturing-oriented Services," Global Business Review, International Management Institute, vol. 11(1), pages 79-101, January.
    3. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    4. Farrell, Andrew M., 2010. "Insufficient discriminant validity: A comment on Bove, Pervan, Beatty, and Shiu (2009)," Journal of Business Research, Elsevier, vol. 63(3), pages 324-327, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Galina Biedenbach & Thomas Biedenbach & Peter Hultén & Veronika Tarnovskaya, 2022. "Organizational resilience and internal branding: investigating the effects triggered by self-service technology," Journal of Brand Management, Palgrave Macmillan, vol. 29(4), pages 420-433, July.
    2. Jiemiao Chen & Robert E. Smith, 2018. "The boundaries for ad creativity: effects of type of divergence and brand processing and responses," Journal of Brand Management, Palgrave Macmillan, vol. 25(6), pages 561-576, November.
    3. Rico Piehler & Debra Grace & Christoph Burmann, 2018. "Internal brand management: introduction to the special issue and directions for future research," Journal of Brand Management, Palgrave Macmillan, vol. 25(3), pages 197-201, May.
    4. Shaun M. Powell, 2016. "Journal of Brand Management – Year end review 2016," Journal of Brand Management, Palgrave Macmillan, vol. 23(6), pages 601-611, November.
    5. Kati Suomi & Saila Saraniemi & Mervi Vähätalo & Tomi J. Kallio & Terhi Tevameri, 2021. "Employee Engagement and Internal Branding: Two Sides of the Same Coin?," Corporate Reputation Review, Palgrave Macmillan, vol. 24(1), pages 48-63, February.

    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. Abu Elnasr E. Sobaih & Ahmed Hasanein & Ibrahim Elshaer, 2020. "Influences of Green Human Resources Management on Environmental Performance in Small Lodging Enterprises: The Role of Green Innovation," Sustainability, MDPI, vol. 12(24), pages 1-19, December.
    2. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    3. Bhattarai, Charan Raj & Kwong, Caleb C.Y. & Tasavori, Misagh, 2019. "Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom," Journal of Business Research, Elsevier, vol. 96(C), pages 47-60.
    4. Anna S. Cui & Fang Wu, 2016. "Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 516-538, July.
    5. Alyahya, Mansour & Agag, Gomaa & Aliedan, Meqbel & Abdelmoety, Ziad H., 2023. "A cross-cultural investigation of the relationship between eco-innovation and customers boycott behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    6. Samuel Adomako, 2020. "Environmental collaboration, sustainable innovation, and small and medium‐sized enterprise growth in sub‐Saharan Africa: Evidence from Ghana," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1609-1619, November.
    7. Keszey, Tamara, 2018. "Trust, perception, and managerial use of market information," International Business Review, Elsevier, vol. 27(6), pages 1161-1171.
    8. Koryoe Anim-Wright & Rhodalene Amartey, 2024. "Examining the Effect of Brand Like and Brand Love on Brand Loyalty," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(2), pages 1-51, March.
    9. Fournier, Pierre-Luc & Chênevert, Denis & Jobin, Marie-Hélène, 2021. "The antecedents of physicians’ behavioral support for lean in healthcare: The mediating role of commitment to organizational change," International Journal of Production Economics, Elsevier, vol. 232(C).
    10. Zhang, Haisu & Wu, Fang & Cui, Anna Shaojie, 2015. "Balancing market exploration and market exploitation in product innovation: A contingency perspective," International Journal of Research in Marketing, Elsevier, vol. 32(3), pages 297-308.
    11. Maduku, Daniel K. & Mpinganjira, Mercy & Rana, Nripendra P. & Thusi, Philile & Ledikwe, Aobakwe & Mkhize, Njabulo Happy-boy, 2023. "Assessing customer passion, commitment, and word-of-mouth intentions in digital assistant usage: The moderating role of technology anxiety," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    12. Mortimer, Gary & Fazal-e-Hasan, Syed Muhammad & Grimmer, Martin & Grimmer, Louise, 2020. "Explaining the impact of consumer religiosity, perceived risk and moral potency on purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    13. Alaa M. S. Azazz & Ibrahim A. Elshaer, 2022. "Amid the COVID-19 Pandemic, Social Media Usage and Food Waste Intention: The Role of Excessive Buying Behavior and Religiosity," Sustainability, MDPI, vol. 14(11), pages 1-14, June.
    14. Mai Dong Tran & Samuel Adomako, 2021. "How CEO social capital drives corporate social performance: The roles of stakeholders, and CEO tenure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 819-830, March.
    15. Marchand, André & Hennig-Thurau, Thorsten & Flemming, Jan, 2021. "Social media resources and capabilities as strategic determinants of social media performance," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 549-571.
    16. Mengmeng Wang & Xiaoming Pan, 2022. "Drivers of Artificial Intelligence and Their Effects on Supply Chain Resilience and Performance: An Empirical Analysis on an Emerging Market," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    17. Omar S. Itani & Nawar N. Chaker, 2022. "Harnessing the Power Within: The Consequences of Salesperson Moral Identity and the Moderating Role of Internal Competitive Climate," Journal of Business Ethics, Springer, vol. 181(4), pages 847-871, December.
    18. Andreas Kallmuenzer & Ursula Scholl-Grissemann, 2017. "Disentangling antecedents and performance effects of family SME innovation: A knowledge-based perspective," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1117-1138, December.
    19. Esfahbodi, Ali & Zhang, Yufeng & Liu, Yang & Geng, Duanyang, 2023. "The fallacy of profitable green supply chains: The role of green information systems (GIS) in attenuating the sustainability trade-offs," International Journal of Production Economics, Elsevier, vol. 255(C).
    20. Schaefers, Tobias & Falk, Tomas & Kumar, Ashish & Schamari, Julia, 2021. "More of the same? Effects of volume and variety of social media brand engagement behavior," Journal of Business Research, Elsevier, vol. 135(C), pages 282-294.

    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:pal:jobman:v:23:y:2016:i:3:d:10.1057_bm.2016.9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.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.