Abstract
Employee-based brand equity (EBBE) has been receiving increasing attention in recent years. However, most studies focus on the construct definition and scale development, as well as the effects that EBBE may have on corporate performance. Few studies try to identify the source of EBBE, or in other words, the antecedents of EBBE. The major study of the antecedents of EBBE is King and Grace’s model (2010), which is restricted to the service industry. As this research is cultural context-dependent, it is necessary to test the framework of King and Grace’s model (2010) in other regions or industries. Replication studies are important for the generalizability of strategic management theories as reputed journals such as the Academy of Management Journal (AMJ) and the Strategic Management Journal (SMJ) have proposed. Therefore, this study was designed to test King and Grace’s model (2010) in an eastern cultural context (China) and covers several non-service sector industries. The results confirmed King and Grace’s model to a high extent, which has significant implications for firms in developing countries. Keywords: Employee-based brand equity, Brand management, China, Employee behavior, Competitive advantage.
Highlights
Brands are useful weapons for companies to win over customers
Based on the data from China, the results show that human factors, openness, knowledge dissemination, role clarity and brand commitment have significant direct or indirect effects on Employee-based Brand Equity (EBBE), and information generation has a peripherally significant indirect effect on EBBE
It is recommended that big brands have to manage employee-based brand equity for greater financial output in the years to come
Summary
The management of firms has recognized the importance of brands and the necessity of investing in brands and customers (Christodoulides & de Chernatony, 2010). Consumer-based brand equity experienced increasing concern; but the role of employees is attracting more and more attention (King & Grace 2010). As more and more attention shifts towards employees, scholars claim that it is necessary to study brand equity from the perspective of employees, which is called Employee-based Brand Equity (EBBE) (King & Grace 2010). The enhancement of EBBE contributes towards attracting skilled talent to join firms, and employees’ skills and knowledge provide a competitive advantage for a firm (King, Grace, & Funk, 2012). Employees’ identification with firms may contribute to customer satisfaction since they directly interact with customers or clients (Poulis & Wisker 2016)
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