Why doesn’t our branding pay off: Optimising the effects of branding through innovation

Abstract

Purpose: Recent branding failures (e.g. Kodak and Krispy Kreme) have cast considerable doubt on the widely accepted contention that to develop a strong brand, firms must continuously strive to be brand oriented or innovation oriented. This study aims to examine the curvilinear and interactive effects of brand orientation and innovation orientation on brand performance. Design/methodology/approach: Survey data were drawn from a sample of 181 firms operating in the consumer goods sector (i.e. fashion, consumer electronics and automobile) and tested through a hierarchical regression analysis. Findings: This study finds that the sole and exclusive focus on either brand orientation or innovation orientation is detrimental to the realisation of superior brand performance because increased levels of this focus lead to diminishing returns. Critically, this study finds that the key to achieving superior brand performance lies in the extent to which the firm integrates both brand orientation and innovation orientation. Originality/value: This study extends current knowledge by showing that focusing on either brand orientation or innovation orientation in isolation is actually detrimental to the firm’s realisation of superior brand performance. The integration of brand orientation and innovation orientation is the key to achieving superior brand performance because the inherent limitations associated with each are overcome by their integration.