Modeling employee-based brand equity (EBBE) and perceived environmental uncertainty (PEU) on a firm’s performance

Abstract

Purpose This paper aims to examine the impact of employee-based brand equity (EBBE) and perceived environmental uncertainty (PEU) on firm performance. Design/methodology/approach Data were collected through an e-mail survey from fast-moving consumer goods (FMCG) firms in the UK and UAE. Sample sectors included cosmetics and toiletries, household care products, packaged food, soft drinks and tobacco firms. Quantitative data were analyzed using structural equation modeling. Findings The results suggest strong support for the hypothesized relationships, thereby providing strong validation for the proposed model. One interesting finding was that the PEU affected employee brand equity significantly stronger in the UK than in the UAE. This phenomenon is explained in the discussion section. Research limitations/implications Although several studies have indicated several other elements for EBBE, such as brand commitment and brand citizen behavior, the authors borrowed King et al.’s (2012) EBBE concept and limited their variables on EBBE for brand endorsement, brand allegiance and brand consistent behavior. Practical implications Knowledge is expanded through an empirical study validating the proposed model, which provides meaningful insights for developing training tools for internal brand management. Firms have to increase the brand manager’s commitment to increase the employee brand equity, which in turn increases the firm’s performance. Originality/value This paper makes three imperative contributions to the branding literature: expanding the existing brand equity literature to incorporate employee brand equity; being the first known empirically tested PEU on employee brand equity; and empirically testing employee brand equity, which has been ignored in branding literature on firm performance.