The impact of branding on SME performance

Resource-based view (RBV) theory states that firms that possess valuable, rare, imperfectly imitable and non-substitutable resources have the capacity to create sustained competitive advantage that translates to superior performance. Branding is an intangible asset that fits this criterion. It is th...

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Main Authors:	Haque, A. K. M. Ahasanul, Salleh, Masripan, Sulaiman, Mohamed, Othman, Abdul Kadir
Format:	Conference or Workshop Item
Language:	English
Published:	2016
Subjects:	HF5001 Business. Business Administration
Online Access:	http://irep.iium.edu.my/55460/ http://irep.iium.edu.my/55460/5/55460.pdf

id	iium-55460
recordtype	eprints
spelling	iium-554602017-03-02T03:18:44Z http://irep.iium.edu.my/55460/ The impact of branding on SME performance Haque, A. K. M. Ahasanul Salleh, Masripan Sulaiman, Mohamed Othman, Abdul Kadir HF5001 Business. Business Administration Resource-based view (RBV) theory states that firms that possess valuable, rare, imperfectly imitable and non-substitutable resources have the capacity to create sustained competitive advantage that translates to superior performance. Branding is an intangible asset that fits this criterion. It is the brand that influences consumers’ minds to make buying decision on products and services they need in a competitive environment, the brand makes all the difference that distinctively differentiates the firm’s products and services against the competition. Studies in many countries have pointed that branding matters for small and medium-sized enterprises (SMEs), reinforcing that it is not only applicable to large organizations or public listed companies. In Malaysia, limited studies show indications that branding is relevant and contribute towards company performance. Thus, the motivation is to pursue a study to analyse the effects (relationship) of branding on performance. This study is undertaken to determine the effects of branding on performance of SMEs in Malaysia. Quantitative methodology is being adopted to identify branding factors affecting SME performance. Six factors emerge from factor analysis using SPSS: branding practice, branding management, branding strategies, branding awareness, branding associations and branding media & technologies. Subsequently, multiple regression technique is used to test the hypotheses. The results of multiple regressions support the hypotheses on relationship between branding practices and performance, and branding associations and performance. Thus, branding affects performance of SMEs in Malaysia. Surprisingly however, branding media and technologies have negative relationships with performance, indicating that its deployment contributes to losses by SMEs. This could be due to high cost of acquiring, deploying, and maintaining technologies that are used to promote brand awareness and brand building. This study therefore contributes to the body of knowledge in marketing and strategic management for SMEs. If property implemented, SMEs in Malaysia could enhance their performance and help achieve the GDP target for the coming years. With the introduction of much anticipated Trans-Pacific partnership Agreement (TPPA) and its implementation in the next two years, SMEs in Malaysia will face greater opportunities and challenges. Branding could be the answer to equip the SMEs, and be able to uniquely differentiate their products and services. Further research on the subject is recommended to identify other possible factors or deeper insights that could increase performance of SMEs. 2016 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/55460/5/55460.pdf Haque, A. K. M. Ahasanul and Salleh, Masripan and Sulaiman, Mohamed and Othman, Abdul Kadir (2016) The impact of branding on SME performance. In: International Malaysia Halal Conference 2016 (IMhalal 2016), 20th-21st October 2016, Kuala Lumpur. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5001 Business. Business Administration
spellingShingle	HF5001 Business. Business Administration Haque, A. K. M. Ahasanul Salleh, Masripan Sulaiman, Mohamed Othman, Abdul Kadir The impact of branding on SME performance
description	Resource-based view (RBV) theory states that firms that possess valuable, rare, imperfectly imitable and non-substitutable resources have the capacity to create sustained competitive advantage that translates to superior performance. Branding is an intangible asset that fits this criterion. It is the brand that influences consumers’ minds to make buying decision on products and services they need in a competitive environment, the brand makes all the difference that distinctively differentiates the firm’s products and services against the competition. Studies in many countries have pointed that branding matters for small and medium-sized enterprises (SMEs), reinforcing that it is not only applicable to large organizations or public listed companies. In Malaysia, limited studies show indications that branding is relevant and contribute towards company performance. Thus, the motivation is to pursue a study to analyse the effects (relationship) of branding on performance. This study is undertaken to determine the effects of branding on performance of SMEs in Malaysia. Quantitative methodology is being adopted to identify branding factors affecting SME performance. Six factors emerge from factor analysis using SPSS: branding practice, branding management, branding strategies, branding awareness, branding associations and branding media & technologies. Subsequently, multiple regression technique is used to test the hypotheses. The results of multiple regressions support the hypotheses on relationship between branding practices and performance, and branding associations and performance. Thus, branding affects performance of SMEs in Malaysia. Surprisingly however, branding media and technologies have negative relationships with performance, indicating that its deployment contributes to losses by SMEs. This could be due to high cost of acquiring, deploying, and maintaining technologies that are used to promote brand awareness and brand building. This study therefore contributes to the body of knowledge in marketing and strategic management for SMEs. If property implemented, SMEs in Malaysia could enhance their performance and help achieve the GDP target for the coming years. With the introduction of much anticipated Trans-Pacific partnership Agreement (TPPA) and its implementation in the next two years, SMEs in Malaysia will face greater opportunities and challenges. Branding could be the answer to equip the SMEs, and be able to uniquely differentiate their products and services. Further research on the subject is recommended to identify other possible factors or deeper insights that could increase performance of SMEs.
format	Conference or Workshop Item
author	Haque, A. K. M. Ahasanul Salleh, Masripan Sulaiman, Mohamed Othman, Abdul Kadir
author_facet	Haque, A. K. M. Ahasanul Salleh, Masripan Sulaiman, Mohamed Othman, Abdul Kadir
author_sort	Haque, A. K. M. Ahasanul
title	The impact of branding on SME performance
title_short	The impact of branding on SME performance
title_full	The impact of branding on SME performance
title_fullStr	The impact of branding on SME performance
title_full_unstemmed	The impact of branding on SME performance
title_sort	impact of branding on sme performance
publishDate	2016
url	http://irep.iium.edu.my/55460/ http://irep.iium.edu.my/55460/5/55460.pdf
first_indexed	2023-09-18T21:18:23Z
last_indexed	2023-09-18T21:18:23Z
_version_	1777411715839819776

The impact of branding on SME performance

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