Ownership Structure and Branding Strategies

Abstract

The brand is the most important asset for enterprises. In a competitive marketplace, brand is considered the best way to differentiate products, to build corporate image and to develop bargaining power with retailers. Branding strategies are therefore a key aspect of corporate decision making. In this paper, the authors analyse the relationship between the ownership structure of agri-food SMEs and branding strategies. A conceptual model of how these variables are related is proposed and empirically tested using data from two surveys (2003 and 2010) of a representative sample of agri-food SMEs in the Languedoc–Roussillon region (South of France). The results show that ownership structure influences branding strategies in SMEs. This finding might be considered a challenge to the relevance of applying agency theory to a very particular form of enterprise and sector of activity.