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An Inside-out Model of Retail SME Brand Orientation for an Emerging Market

Johannes WIID

Johannes WIID

University of South AfricaPretoria, ZA
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WIID, Johannes
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Michael CANT

Michael CANT

University of South AfricaPretoria, ZA
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CANT, Michael
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Belinda SENOOANE

Belinda SENOOANE

University of South AfricaPretoria, ZA
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SENOOANE, Belinda
  
Mar 25, 2025
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Published Online: Mar 25, 2025
Page range: 1 - 19
Received: Oct 03, 2024
Accepted: Feb 10, 2025
DOI: https://doi.org/10.2478/mdke-2025-0001
Keywords
© 2025 Johannes WIID et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1.

Path analysis model Source: own processing
Path analysis model Source: own processing

Figure 2.

Hypotheses model with path estimates Source: own processing
Hypotheses model with path estimates Source: own processing

Path coefficients

H Path Coefficient t-statistic p-value Result
H1a Brand resources → Brand characteristics -0.226 3.177 0.002** Accepted
H1b Brand resources → Brand development 0.223 3.220 0.001** Accepted
H1c Brand resources → Brand orientation 0.048 0.508 0.612 Rejected
H1d Brand resources → Brand perception 0.019 0.286 0.775 Rejected
H1e Brand resources → Perceived advantage 0.237 3.450 0.001* Accepted
H2a Brand characteristics → Brand development 0.163 2.850 0.005* Accepted
H2b Brand characteristics → Brand orientation 0.071 0.848 0.397 Rejected
H2c Brand characteristics → Brand perception 0.000 0.005 0.996 Rejected
H2d Brand characteristics → Perceived advantage 0.069 1.145 0.253 Rejected
H3 Brand development → Brand orientation 0.329 2.391 0.017 Accepted
H4a Brand perception → Brand development 0.500 7.439 *** Accepted
H4b Brand perception → Brand orientation 0.002 0.020 0.984 Rejected
H5a Perceived advantage → Brand development 0.122 1.732 0.084 Rejected
H5b Perceived advantage → Brand orientation -0.025 0.228 0.820 Rejected
H5c Perceived advantage → Brand perception 0.555 6.561 *** Accepted
Adjusted R-squared Statistic t-statistic p-value
Brand characteristics 0.044 1.416 0.157
Brand development 0.397 6.529 0.000
Brand orientation 0.106 1.936 0.053
Brand perception 0.320 3.825 0.000
Perceived advantage 0.048 1.404 0.161

Convergent validity

Variable Factor loading t-statistics p-value*
Brand resources (BR) (α=0.752, CR=0.706, AVE=0.435)
Financial 0.576 7.470 0.000
Human resources 0.749 11.415 0.000
Time 0.654 8.423 0.000
Responsiveness to publicity 0.655 9.573 0.000
Inspired/uninspired marketing 0.715 11.816 0.000
Lack of branding strategy 0.508 5.094 0.000
Brand characteristics (BC) (α=0.982, CR=0.988, AVE=0.902)
Price of the brand 0.921 32.394 0.000
Guarantee of the brand 0.959 46.192 0.000
Availability of the brand 0.985 66.323 0.000
Innovativeness of the brand 0.983 54.525 0.000
Reliability of the brand 0.984 69.883 0.000
Communication of a brand 0.940 35.722 0.000
Image of the brand 0.989 70.267 0.000
Attitude towards the brand 0.977 52.420 0.000
Performance of the brand 0.956 43.459 0.000
Brand development (BD) (α=0.85, CR=0.888, AVE=0.531)
Brand awareness 0.743 21.413 0.000
Quality of products/services 0.711 15.456 0.000
Repeat purchases 0.715 16.207 0.000
Brand image development 0.815 24.252 0.000
Achievement of competitive advantage over competitors 0.719 15.597 0.000
Evaluation of overall marketing strategy 0.727 16.723 0.000
Building of a solid reputation 0.682 14.484 0.000
Brand orientation (BO) (α=0.653, CR=0.725, AVE=0.686)
Daily marketing operations to long-term branding strategy 0.751 5.145 0.000
Increasing awareness of product/service to reinforce the distinctiveness of the product or service 0.901 7.486 0.000
Perceived advantage (PA) (α=0.863, CR=0.843, AVE=0.414)
It adds value that customers are prepared to pay for 0.600 8.701 0.000
It inspires customer loyalty 0.766 19.800 0.000
It leads to positive word of mouth 0.674 16.121 0.000
The brand owner can charge higher prices 0.357 4.690 0.000
Better access to distribution 0.631 10.379 0.000
The customer will remember the product/service 0.678 13.333 0.000
Less risk for the customer 0.548 7.779 0.000
The brand provides an image of quality 0.772 15.461 0.000
The brand provides an image of reliability 0.697 15.378 0.000
Brand perception (OBP) (α=0.846, CR=0.873, AVE=0.441)
It is important to brand a business 0.487 8.140 0.000
Strong brands exert a halo effect 0.485 8.032 0.000
Strong brands represent different values, traits and characteristics 0.604 11.710 0.000
A strong brand serves as a platform for expansion 0.689 13.611 0.000
An existing retail brand strengthens brand awareness and differentiation from the competition 0.617 12.806 0.000
Branding unlocks profitability 0.457 5.077 0.000
Brands prompt consumer selection 0.633 10.854 0.000
Brands lead to name awareness 0.693 13.448 0.000
Branding signals the building of customer loyalty 0.686 13.142 0.000
Branding signals trust 0.704 16.477 0.000

Fornell–Larcker criterion

ID Variables 1 2 3 4 5 6
1 Brand resources 0.660
2 Brand characteristics -0.218 0.950
3 Brand development 0.279 0.124 0.729
4 Brand orientation 0.118 0.102 0.342 0.828
5 Brand perception 0.147 0.007 0.575 0.185 0.643
6 Perceived advantage 0.223 0.020 0.442 0.134 0.572 0.664

Model fit indices

Variable Statistics 95% 99%
SRMR 0.069 0.076 0.082
d_ULS 4.518 5.523 6.295
d_G 2.842 3.665 4.043

Heterotrait–Monotrait ratio

ID Variables 1 2 3 4 5 6
1 Brand resources
2 Brand characteristics 0.244
3 Brand development 0.362 0.129
4 Brand orientation 0.180 0.156 0.427
5 Brand perception 0.226 0.089 0.655 0.206
6 Perceived advantage 0.297 0.133 0.547 0.240 0.695
Language:
English
Publication timeframe:
4 times per year
Journal Subjects:
Business and Economics, Political Economics, Macroecomics, Business Management, Business Management, other, Social Sciences, Sociology, Labor, Trade Unions, Sociology of Economy, Organizations, and Industry
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