Date of this Version

1-1-2007

Document Type

Journal Article

Publication Details

Pre-print:

Craig, J. B., Dibrell, C., Davis, P. S. Leveraging family-based brand identity to enhance firm competitiveness and performance in family business. 35pp.

Copyright © J. B. Craig, C. Dibrell and P.S. Davis, 2007.

2008 HERDC submission. FoR Code: 1503

Abstract

Abstract

Drawing on the family embeddedness perspective on entrepreneurship and the resource-based-view (RBV) of the firm, we investigate how the promotion of family-based brand identity influences competitive orientation (customer versus product) and firm performance in family businesses. Applying structural equation modeling to survey data collected from leaders of 218 family businesses, we demonstrate that developing a family-based brand identity positively contributes to firm performance (growth and profitability) indirectly, via a customer-centric orientation. In contrast, attempts to leverage family-based brand identity via a product-centric orientation do not impact firm performance. Our results suggest that family-based brand identity enhances the family business’ ability to persuade customers to make purchasing decisions based on the perceived attributes of the seller. As a result, we contribute to the discussions centered on how to optimize the intricate synergy between family and business.