Impact of government brand-building promotion on enterprise financial performance: empirical evidence from China

Abstract

In many countries, as a corporate external stakeholder, the government takes measures to promote the development of corporate brand. However, no consensus has been reached among scholars on the impact of government brand-building promotion (GBBP) on enterprises. Authors of this paper investigated 797 enterprises that have won the title of Top Brand granted by the government of Anhui Province, China, and found out that government promotion benefits enterprises through internal resource path, that is, GBBP is able to encourage the product & brand investment of enterprises and further improve their product competitiveness and brand equity, leading to better enterprise performance. This paper elaborates that the direct effect of GBBP on customer-based brand equity is not significant, thus negating the external customer path, but documents a positive relationship between the internal path and external path.