Examining the performance implications of brand orientation: the role of formalisation and brand management capability via a mediated moderation approach
Although the performance implications of brand orientation have been widely documented in the marketing literature, there still appears to be a lack of knowledge about the type of internal control that supports brand orientation efforts, particularly one that has often been maligned for its rigid nature, such as formalisation. Further, recent research suggests that brand orientation alone may not be sufficient for the generation of superior brand equity if the firm has no relevance outside the organisation and provides no value to the customer. Drawing on the theory of marketing control and data from a survey of 183 firms operating within the consumer goods sector, the study finds that the influence of brand orientation on brand equity is stronger when formalisation is high. Further, guided by the resource-based theory, the study finds that the interactive effect of brand orientation and formalisation on brand equity is mediated by brand management capability.