The Mechanistic Role of Brand Orientation in Translating Marketing Capabilities and Entrepreneurial Orientation into Brand Value: A Case Study of the Tile and Ceramic Industry
Subject Areas :
1 - Associate Professor, Department of Industrial Management, Meybod University, Meybod, Iran
Keywords: Brand Performance, Entrepreneurial Orientation, Brand Orientation, Marketing Capabilities, Customer Value-Added.,
Abstract :
Objective: This study aimed to develop a causal model to examine the direct and indirect effects of marketing capabilities and entrepreneurial orientation on brand performance and customer value-added, considering the pivotal role of brand orientation as a mediating variable, in tile and ceramic companies of Yazd Province. Methodology: In terms of purpose, this study is applied, and regarding data collection, it is descriptive-survey research of a causal nature. The statistical population consisted of 683 managers from tile and ceramic companies in Yazd Province. Using the Cochran formula, a sample size of 417 was estimated and selected through simple random sampling (400 analyzable questionnaires were returned). Data were collected using standardized questionnaires measuring five constructs: entrepreneurial orientation, marketing capabilities, brand orientation, customer value-added, and brand performance. The content validity of the instrument was confirmed by expert opinion, its construct validity based on factor loadings, and its reliability was verified by calculating Cronbach's alpha coefficient. Data analysis was performed using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) algorithm. Findings: The results of data analysis revealed that: (1) Entrepreneurial orientation and marketing capabilities have a significant positive effect on brand orientation; (2) Brand orientation directly and significantly positively affects brand performance and customer value-added, and (3) Furthermore, brand orientation plays a significant mediating role in the relationship between the independent variables (marketing capabilities and entrepreneurial orientation) and brand performance. In other words, a substantial portion of the impact of these capabilities on brand performance is realized through strengthening brand orientation within the organization. Conclusion: The findings emphasize that to enhance brand performance and create tangible value for customers, companies should focus not only on developing external capabilities (marketing) but also on fostering a strong organizational culture based on entrepreneurial orientation and, particularly, brand orientation. Brand orientation acts as a key mechanism that transforms investments in organizational capabilities into superior market outcomes. Managers in the tile and ceramic industry can utilize these findings to structure their strategic planning in the realm of branding. Originality: Although the significance of branding and brand as critical business assets is widely accepted, understanding the mechanisms through which internal firm capabilities (such as marketing and an entrepreneurial spirit) lead to brand value creation, particularly in specific manufacturing industries like tile and ceramic, still requires further empirical research. This study helps fill this research gap.
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