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

Sasu Tuominen, Saku Hirvonen, Helen Reijonen and Tommi Laukkanen
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Sasu Tuominen: University of Eastern Finland

Journal of Brand Management, 2016, vol. 23, issue 3, No 5, 306-326

Abstract: 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.

Keywords: internal branding; brand values adoption; organizational commitment; brand performance; market performance; financial performance (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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DOI: 10.1057/bm.2016.9

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