The impact of supply chain integration on brand equity

Daekwan Kim · Erin Çavuşgil

65 citations0/0 files storedJournal of Business and Industrial Marketing

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Quality and Supply Management Supply Chain and Inventory Management Sustainable Supply Chain Management

Abstract

Purpose – As measuring returns on intangible assets has become more and more crucial in the contemporary business environment, this study seeks to explore the impact of a firm’s supply-chain specific intangible assets on firm performance, drawing on the dynamic capabilities view of the firm. Design/methodology/approach – As an exploratory study that links supply chain activities with firm brand, the study investigates how a firm’s supply chain characteristics, such as interfirm activity integration, interfirm system integration, and supply chain responsiveness, affect brand equity and ultimately firm performance, based on responses from 184 US supply chain managers. Findings – The results of the study indicate that both interfirm system integration and supply chain responsiveness have a direct positive effect on brand equity. However, the effect of interfirm activity integration on brand equity is totally mediated by supply chain responsiveness. Research limitations/implications – The study relied on a single informant from each business unit in testing the study framework, investigating a selected few supply chain specific antecedents of brand equity only. The supply chain specific characteristics of the firm the study explored deserve more research attention in the literature as they directly or indirectly help enhance brand equity. Supply chain integration is multidimensional: interfirm activity integration and interfirm system integration. The effect of interfirm activity integration on brand equity is totally mediated by supply chain responsiveness. Practical implications – Managers should understand the importance of their supply chain activities in improving and managing brand equity. Originality/value – The study explores supply chain specific antecedents of a firm’s brand equity for the first time.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1988Structural equation modeling in practice: A review and recommended two-step approach.1997Dynamic capabilities and strategic management 1991Structural Equations with Latent Variables.1986Self-Reports in Organizational Research: Problems and Prospects 1979A Paradigm for Developing Better Measures of Marketing Constructs 2000Dynamic capabilities: what are they?1993Conceptualizing, Measuring, and Managing Customer-Based Brand Equity

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