Brand Orientation and Brand Performance in SMEs: The Moderating Effects of Social Media and Innovation Capabilities

Abstract

Purpose – This study aims to investigate the moderating effects of innovation capabilities and social media capabilities on the relationship between brand orientation and brand performance among small- and mediumsized enterprises (SMEs). Drawing on the size differential feature from the organizational ecology theory, the paper further tests variations in these conditions across disaggregated SME levels. Design/methodology/approach – The empirical part of the study was carried out with a sample of 484 enterprises in an emerging market context via exploratory and confirmatory factor analyses, along with a moderated hierarchical regression. Findings – Results from the moderated hierarchical regression analysis indicate that although the two capabilities generally offered positive moderating effects across all enterprises, these are conditional and not invariant when disaggregated based on enterprise sizes (small vs medium). Originality/value – The study suggests the need for enterprise owners/managers to identify optimal combinations of enterprise capabilities, based on their sizes, for which their complementarities with brand orientation efforts are more potent.