Influence of perceived quality and brand equity on legitimacy

Tatiana Cuervo Carabel,Natalia Orviz Martínez

doi:10.3926/hdbr.246

Abstract

The management of intangible assets is fundamental for the survival of organizations, with the perceived quality and brand equity being two of these assets. This work seeks to answer the question: are perceived quality and brand equity antecedents of legitimacy in the organization? A quantitative analysis is developed, making use of structural modeling. It is confirmed that the management of both intangible assets is fundamental to ensure good social results in organizations, by increasing their legitimacy. The main limitation of the work is associated with the characteristics of the companies that make up the sample, which constitutes a future line of research that allows us to continue delving into the relationships analyzed.

Highlights

The study and analysis of intangible assets has attracted great interest from both the business and academic points of view
The increase of competitiveness in a globalized economy has promoted the identification of drivers of sustainable competitive advantages (Schwaiger, 2004) and the exploitation of resources is what allows companies to obtain a competitive advantage (Peteraf, 1993)
According to Barney (1991), not all resources are capable of creating such an advantage. This author calls the resources capable of generating a competitive advantage “strategic resources” indicating that they must fulfill a series of characteristics: valuable, unique and inimitable

Summary

Introduction

The study and analysis of intangible assets has attracted great interest from both the business and academic points of view. The increase of competitiveness in a globalized economy has promoted the identification of drivers of sustainable competitive advantages (Schwaiger, 2004) and the exploitation of resources is what allows companies to obtain a competitive advantage (Peteraf, 1993). According to Barney (1991), not all resources are capable of creating such an advantage. This author calls the resources capable of generating a competitive advantage “strategic resources” indicating that they must fulfill a series of characteristics: valuable, unique and inimitable. Two of the intangible assets that organizations have are: perceived quality (Cho & Pucik, 2005) and brand equity (Ludvík, Michal & Petr, 2018)

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Results