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Keywords: Using data from a large, cross-industry sample, this paper examines the impact of brand equity (BE) on employee
Brand equity attitudes. Stronger brands have both positive and negative effects on employee attitudes, contingent on orga
Employee attitude nizational hierarchy. Specifically, the impact of stronger brands on employee attitudes is positive for lower-level
Human capital
employees, negative for mid-level executives, and not significant for top managers. This paper further details the
Internal marketing
Organizational hierarchy
extent to which alignment between top and mid-level executives ’ attitudes affects lower-ranking employees’
Executives attitudes. Because firms’ management of the impact of BE on employee attitudes has important implications, this
article recommends an approach that enables firms to regulate work relationships by investing in strong brands.
Given that such investments are less beneficial in certain circumstances, this study provides useful guidelines for
enhancing their effects.
1. Introduction business cases seem to suggest that brand equity impacts positively
employee satisfaction. For example, Southwest Airlines is well-known
Brand equity (BE) from a consumer-based perspective (Keller, 1993; for using employer branding to retain employees by increasing their
Yoo et al., 2000) refers to consumers’ cognition, affect and behavior satisfaction and motivational levels (Miles & Mangold, 2005). They
toward a brand allowing that brand to reap more benefits than it would achieved an average employee turnover of 2.5% in 2017, which is the
without the brand name. Regardless of the perspective from which it is lowest rate in the airline industry (Spiegelberg, 2017). Therefore, are
conceptualized (Veloutsou et al., 2020), BE is shown to enhance desir employees more satisfied when they work for firms with strong brands?
able outcomes, including financial (such as premium pricing and higher Recognizing its theoretical and practical relevance, Moorman and Day
margins; Ailawadi et al., 2003; De Mortanges & Van Riel, 2003); (2016) called for research on the impact of BE on employee attitudes.
acquisition and retention (e.g., Stahl et al., 2012); organizational The current research responds to this call.
attractiveness to job applicants (e.g., Brunner & Baum, 2020); and, firm Examining the relationship between brand equity and employee
performance (Wang et al., 2015). All in all, firms devote significant re attitude is crucial because both synergistically affect firm performance,
sources to develop, enhance, sustain, and protect their BE. with great managerial and economic significance (Moorman & Day,
Firms also invest heavily in employees through internal branding, 2016). In fact, employees’ attitudes have a critical impact on customers’
employee-based branding (King & Grace, 2009), internal marketing, and experiences, especially in services, so it is crucial to ensure what in
corporate wellness programs. For example, the French luxury company fluences employee attitude and how (Schlager et al., 2011). In addition,
LVMH recently increased its efforts on social and environmental issues focusing on the relationship between BE and employee attitudes extends
and discovered that “the percentage of pride in being part of the LVMH the domain of marketing to human resources, in line with previous
group rose higher” and “this applied to the brand and group level“ research that suggests strong branding lowers executives’ pay (Tavassoli
(Spencer, 2021, p. 15). Given the respective importance of BE and et al., 2014) and increases the efficiency of advertising and promotion
human capital, surprisingly little research has explored their relation (Anselmsson, Bondesson, & Melin, 2016; King & Grace, 2009). More
ship. Consideration of the effects of BE on firms’ human capital (i.e., specifically, the study sheds new light on the effect of brand strength on
employees) is notably lacking, even though appraisal of brand value employees’ attitudes across hierarchical levels since the internal mar
cannot be complete without employee impacts. In principle, some keting and branding literature (e.g., Baker et al., 2014; Morhart et al.,
* Corresponding author.
E-mail addresses: Myriam_Ertz@uqac.ca (M. Ertz), rouzies@hec.fr (D. Rouziès), emine.sarigollu@mcgill.ca (E. Sarigöllü).
https://doi.org/10.1016/j.emj.2022.09.009
Received 25 February 2021; Received in revised form 29 August 2022; Accepted 22 September 2022
Available online 27 September 2022
0263-2373/© 2022 Published by Elsevier Ltd.
Please cite this article as: Myriam Ertz, European Management Journal, https://doi.org/10.1016/j.emj.2022.09.009
M. Ertz et al. European Management Journal xxx (xxxx) xxx
2009; Wieseke et al., 2009) emphasized the role of leaders for conveying as Foa and Foa (1974), people “repay” (un)favorable treatment they
brand strength and values to lower-ranking employees. The impact of receive from other social entities (Schminke et al., 2002). Most impor
brand strength on employees’ attitudes differs according to their hier tantly, individuals reciprocate not only concrete material outcomes such
archical levels, but the clarification of these effects—or lack thereof, as pay, but also more particularistic socioemotional benefits such as love
remains largely unknown, especially in quantitative research, and and respect. Contemporary social exchange theories maintain the notion
despite its importance as expressed in past research (Baker et al., 2014; of reciprocity but extend Blau’s (1964) economic-exchange continuum
Morhart et al., 2009; Wieseke et al., 2009). To establish these contin to view social exchanges as a relationship between two or more parties
gencies, we quantify the strategic relationship between brand manage (Organ, 1988; Shore et al., 2006). Whereas economic exchange re
ment (BE) and employee management and specify the role of marketing lationships entail short-term exchanges, the transfer of pecuniary ben
activities in this relationship. efits, and a quid pro quo orientation in which each party anticipates
The objectives of this research are: (1) to study the impact of BE on payment for services rendered, social exchange relationships establish
employee attitudes; and (2) to identify the boundary conditions of such long-term horizons, transfers of socioemotional benefits, and “tit-for-
impact, using a unique data set that reflects employees’ attitudes across tat” orientations with diminished expectations of specific repayments
hierarchical levels and industrial sectors. This research is relevant and (Schminke et al., 2002). Employees enter both types of relationships.
essential because employees lie at the crux of value creation and Economic exchanges are directly associated with pay, but social ex
particular care needs to be taken to improve their attitude and morale. changes are less concrete and utilitarian in nature.
Toward this end, we specifically discuss how marketing can contribute
to desirable human capital outcomes. The recommendation is that 2.2. Social exchange theory and brand equity
practitioners take a broader view of brand contributions to firm value
and more actively leverage their BE to improve employee attitudes. Adopting a contemporary social exchange perspective, this study
Past research emphasized the crucial role played by management considers both individual and organizational-level relationships. As
control (Chen & Wu, 2016; George & Gronroos, 1989; Joseph, 1996), providers of various socioemotional benefits to employees, brands
employer branding (Mölk & Auer, 2018; Morhart et al., 2009; Russell & contribute to the development of social exchange relationships. Since we
Brannan, 2016; Wieseke et al., 2009), and symbolic and cultural rep consider both individual and organizational level relationships, the
resentation in explaining employee attitude (Endrissat et al., 2017; important aspect of relationship in contemporary social exchange the
Russell & Brannan, 2016; Tavassoli et al., 2014). Yet, none investigated ories is useful here. Brands are fundamentally intangible, but they have a
the influence of BE along with hierarchical position. Consequently, this core identification role for many stakeholders (Berry, 2000). The liter
study makes two main contributions to theory and practice. First, by ature also emphasized the various socioemotional benefits brands pro
focusing on the relationship between BE and employee attitudes, this vide to employees such as pride or identity-creation potential (Endrissat
study emphasizes an intrinsically marketing–anchored approach by et al., 2017; Lievens et al., 2007; Tavassoli et al., 2014). In that sense,
which firms can regulate work relations by investing in strong brands. brands contribute heavily to craft social exchange relationships.
Furthermore, it identifies instances in which such investments are less
beneficial. Second, the proposed model integrates research in manage 3. Conceptual framework and hypotheses development
ment with regards to human capital (Moorman & Day, 2016; Van
Marrewijk & Marcel, 2004); psychology, in relation to employee atti 3.1. Brand equity
tude (Burchell & Robin, 2011; Bush, 2018; Gehrels, 2019), and mar
keting with reference to brand equity (Keller, 1993; Veloutsou et al., BE has been conceptualized from different perspectives, such as
2020; Yoo et al., 2000). The study thereby sheds new light on the effect consumer-, sales-, financial-, firm-, and employee-based BE (Veloutsou
of BE on employees’ attitudes across hierarchical levels. The current et al., 2020). The most popular among these is the consumer-based
research is guided by studies that examine internal marketing (e.g., perspective (Keller, 1993; Yoo et al., 2000). Accordingly, BE pre
Mölk & Auer, 2018; Morhart et al., 2009; Russell & Brannan, 2016; disposes consumers (1) to choose the brand more often, yielding extra
Wieseke et al., 2009) and that emphasize the role of leaders in conveying income through bigger volume (premium); (2) to pay more for the
BE and values to lower-ranking employees. This research also reveals the brand, generating income through higher prices (power); and (3) to stick
extent to which alignment between top and mid-level executives ’ atti to the brand or try it in the future, indicating lower risk and potential
tudes affects lower-ranking employees’ attitudes. The strategic rela future growth (potential) (Alagon & Samuel, 2013). This conceptuali
tionship between brand management and employee management is zation is adopted in this study.
quantified to establish these contingencies, and the role of marketing
activities in this relationship is specified. The understanding provided by 3.2. Employee attitude
this study on the extent to which BE affects human capital has important
implications for the marketing literature, in general, and the internal Human capital refers to firms’ social dimensions (Van Marrewijk &
marketing literature in particular. Marcel, 2004) and include employee competence and attitude (Moorman &
Day, 2016). The former refers to the knowledge, skills, training,
2. Research background know-how, experience, and abilities that reside with employees (Sirmon
& Hitt, 2009) and predicts employees’ efficacy, productivity, and per
2.1. Social exchange theory formance. The latter, i.e., employee attitude, refers to the extent to
which “employees trust the people they work for, have pride in what
Social exchange theory (SET) originates in social psychology and has they do, enjoy the people they work with” (Van Marrewijk & Marcel,
been applied in various research domains, including business and mar 2004, p. 140). Multiple scholars have adopted this conceptualization of
keting (Lambe et al., 2001; Luo, 2002). A key tenet for organizational employee attitude (e.g., Burchell & Robin, 2011; Bush, 2018; Gehrels,
contexts is that in addition to forming relationships with individual 2019), and the three core dimensions, namely trust, pride, and enjoy
coworkers and supervisors, people also develop relationships with firms ment, have been further validated empirically by a broad range of
(Masterson, 2001). Different perspectives on social exchange theory studies (Filbeck & Preece, 2003; Garrett et al., 2014; Gartenberg et al.,
have led to the emergence of two main orientations (Cropanzano et al., 2016, pp. 16–69; Guiso et al., 2015; Smithey Fulmer et al., 2003).
2001). Early views from the 1960s–1970s emphasize the notion of
self-interest, such that long-term self-interest is served by conforming to
reciprocity norms (Becker, 1960). According to Emerson (1981) as well
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3.5. Boundary conditions of the brand equity – employee attitude benefit packages, but also their reputation in the industry, bringing them
relationship public visibility, media appearances, political involvement, and chances
of joining other boards of administration, while these advantages are
In our theoretical framework, the primary relationship between an typically absent for mid-level managers who act somewhat like the
entity and subjective perceptions is qualified by the entity’s hierarchical anonymous enablers of that success. Their perception of benefits is thus
level (Mathieu & Zajac, 1990; Rousseau, 1995; Schminke et al., 2001). much lower than that of top managers. Hence, the higher the effort
Relative to lower-level employees, those who are higher in the organi required—with few incremental socioemotional or economic benefits as
zational hierarchy experience higher pay, more influence over policy, compensation, the lower the attitude. Therefore, the extra pressure and
and tremendous respect (Homans, 1974). They receive treatment workloads of mid-level executives who work for strong brands will have
perceived as both more advantageous and fairer (Schminke et al., 2002) a dampening effect on their attitudes. Thus, we hypothesize:
and have better access to high-level training to improve their occupa
H3. Employees’ levels in organizational hierarchies moderate the
tional skills and more significant opportunities for career advancement
relationship between brand equity and employee attitudes, such that
within the firm or externally. They may also have more interpersonal
brands higher in BE improve top managers’ attitudes and dampen mid-
relationships than lower-level employees and enjoy higher camaraderie
level executives’ attitudes.
and trust (Whitener et al., 1998). These additional benefits are expected
to contribute to more positive employee attitudes for higher-ranking Internal marketing literature draws heavily on Ashforth and Mael’s
employees compared to lower-ranking. Indeed, Mathieu and Zajac (1989) social identity theory to emphasize the importance of executives
(1990), as well as Brown (1996), found that employees at higher levels in building BE among lower-ranking employees (Baker et al., 2014;
show more significant commitment and higher involvement than em Morhart et al., 2009; Wieseke et al., 2009). It is posited that this desir
ployees at lower levels. Accordingly, it is hypothesized: able outcome is most likely to occur when mid-level executives’ and top
executives’ attitudes are aligned. An essential aspect of social exchange
H2. The higher the employees’ levels in firms’ organizational hierar
theory is reciprocity (Emerson, 1981; Foa & Foa, 1974; Schminke et al.,
chies, the more positive their attitudes.
2002). If mid-level executives are as satisfied as top managers, this may
Social exchange theory also emphasizes the role of perceived rather increase commitment to infuse positive attitudes among employees.
than actual benefits and recognizes that a particular element needs not Conversely, if mid-level executives perceive high discrepancies between
be of equal perceived value to everyone (Schminke et al., 2002). Those their treatment and top managers—for example, in unequal socioemo
who have less of something generally place a higher value on each unit tional or utilitarian benefits—they may reciprocate in ways that reflect
they possess and each marginal unit they obtain (Homans, 1974; their dissatisfaction and be less zealous about conveying positive atti
Schminke et al., 2002), whereas those who have more perceive any tudes to lower-ranking employees. Accordingly, attitude alignment
given additional increment as proportionately less. Social exchange (misalignment) between top managers and mid-level executives bolsters
theory thus predicts that the effect of organizational aspects—in our (dampens) lower-ranking employees’ attitudes.
case, brand equity—will be stronger for those of lower ranks and weaker
H4. The greater the alignment of top managers’ and mid-level execu
for those of higher ranks.
tives’ attitudes, the more positive the attitudes of other employees.
Higher-level employees can also be classified into top managers and
mid-level executives. The social exchange framework predicts a weaker The positive effects of strong brands and the negative impacts of
relationship between brand equity and attitudes of top managers attitude misalignment on employee attitudes may vary by industry
because they receive more compensation and are less involved in the sector. In service settings, a brand’s meaning is conveyed through store
brand development and maintenance activities typically carried out by atmospherics, products, and customer interactions with staff members,
mid-level executives (Morhart et al., 2009). Lower-level employees (e.g., who are expected to embody the soul of brands (King & Grace, 2009).
agents, technicians, workers) handle operational tasks and are generally According to Berry (2000, p. 129), “a strong service brand is essentially a
not involved in strategic decision making (Schminke et al., 2002) or promise of future satisfaction,” which involves four conditions of brand
brand-related initiatives except as frontline representatives of the brand. excellence. First, the brand must be different; its personnel must exhibit
The rest of the employees can be classified into top managers and its difference. Second, it must perform effectively, reinforcing cus
mid-level executives. tomers’ experiences and staying true to its promise. Third, it must
Relative to other organizational groups, mid-level executives face connect emotionally through employees’ delivery of extensive socio
more BE–related pressures (Clark et al., 2019). Mid-level executives emotional benefits to customers. Fourth, employees must internalize
operate in between and articulate the interests of both lower-ranking and “live” the brand values. Yet for low-level service employees, who
and higher-ranking groups. They help cultivate the company brand for often occupy frontline jobs and need to enact the corporate brand during
insiders and outsiders; articulate a unifying brand vision; provide indi the service encounter throughout time (Henkel et al., 2007), those
vidualized support as coaches and mentors; specify codes; write scripts conditions offer few advantages. They may rather induce additional
for frontline employees, monitor their performance; and provide pressure, with typically lower reciprocity in terms of socioemotional or
adequate compensation (Morhart et al., 2009). Moreover, they utilitarian benefits (Harquail, 2007; Jha et al., 2017; Sliter et al., 2016).
“become” or “live” the brand and act as appropriate role models, Furthermore, misalignment between the attitudes of top managers
following organizational brand values (Berry & Parasuraman, 1992). and mid-level executives tends to diminish lower-ranking employees’
The management or “custodianship” of brands has typically been perception of internal reciprocity, thereby lessening their positive atti
entrusted to middle management (Capon et al., 2001). These mid-level tudes. When mid-level executives’ attitudes are misaligned with top
executives likely feel even more pressure when their brand is vital managers’ attitudes, service firms’ employees may experience less pos
because such brands act as “bosses” (Endrissat et al., 2017; Kärreman & itive attitudes than manufacturing firms’ employees. We thus expect
Rylander, 2008). It might become more challenging to be the custodian that BE enhances the negative relationship between top management
of stronger “boss” brands. and mid-level executives’ attitude misalignment and lower-ranking
Top-level managers are less involved in brand development and employees’ attitudes in service settings.
maintenance activities typically carried out by mid-level executives
H5. When top managers’ and mid-level executives’ attitudes are
(Morhart et al., 2009). However, they may derive substantially more
aligned (misaligned), stronger brands increase (decrease) lower-level
benefits from strong brands than mid-level managers. Stronger brands
employees’ attitudes, especially in services industries in comparison to
being vectors of higher performance and profitability (Wang et al.,
manufacturing ones.
2015), may increase top managers’ value of stock-option plans and other
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The hypothesized relationships and interaction effects are displayed (4) Pride items determine how employees feel about their impact
in Fig. 1. through their work, their price in their team’s work, and their
price in the organization overall.
4. Research design (5) Camaraderie items gauge whether employees believe their or
ganization is a strong community where colleagues are friendly,
4.1. Data and measures supportive, and welcoming (Great Place to Work® Institute,
2020).
4.1.1. Dependent variable
Employee attitude (i.e., Human capital), is assessed using the Great Credibility is measured with 14 items; respect with 13 items; fairness
Place to Work GPTW® construct. Several scholars have suggested three with 13 items; pride with eight items; and camaraderie with 11 items.
core dimensions of employee attitude, namely trust, pride, and enjoy The GPTW database used for this study comes from France and includes
ment (Filbeck & Preece, 2003; Garrett et al., 2014; Gartenberg et al., data from 22,918 employees of 20 public or private firms for 2015. To
2016, pp. 16–69; Guiso et al., 2015; Smithey Fulmer et al., 2003). These match firms with BE data (through the brands), some observations were
dimensions of employee attitude are well-reflected in the Great Place to excluded as the overlap between the two databases is not full, leaving a
Work GPTW® measure, which is used in this study. GPTW measure sample of 11 firms and 8853 observations. Furthermore, to match firms
represents a broad range of employee attitudes (Ballou et al., 2003; with all covariates, two firms were removed, representing a total of 512
Smithey Fulmer et al., 2003) grouped under five dimensions; credibility, observations, leaving thus a final of 9 firms and 8341 observations. The
respect, fairness, pride, and camaraderie. The GPTW measure has been firm sample offers a mix of both national (French) and private firms (2)
recurrently used and validated in past research (e.g., Branch, 1999; and public multinational organizations (7), representing a variety of
Garrett et al., 2014; Gartenberg et al., 2016, pp. 16–69; Guiso et al., industries, including food processing, fast food restaurant, telecommu
2015; Smithey Fulmer et al., 2003). nications, banking and insurance, and sportswear manufacturing. Firm
The GPTW dimensions also correspond to the facets of internal size measured in the number of employees ranges between 480 and
marketing proposed by George and Gronroos (1989). Besides, as pointed 210,000. Among the sample of nine firms, 5 are services firms repre
out by Joseph (1996), the various ways of effective internal marketing sented by 4939 employees. While services firms have all operations in
are closely related to the dimensions of the GPTW® scale. the B2C market, a few also provide B2B services. So, the sample com
More generally, the dimensions of the GPTW scale share a com prises high-contact service settings.
monality with the dimensions in some internal marketing studies Due to the diversity in firm size, geographical location (the majority
assessing the level of management’s care towards employees and how of the companies are multinationals), and sector of operation, the
employees perceive this care. In contrast, consumer-based BE assesses sampled companies have diverse branding styles. However, three gen
the level of care taken by management to cater to the market. Thus, it is eral types of branding mixes tend to emerge. First, companies in the
interesting to consider the extent to which externally oriented care (BE) consumer semi-durables (sportswear) and non-durable goods (food
affects internally oriented care perceived by employees (i.e., employee processing) sectors tend to focus on product branding retail branding on
attitudes). some occasions. If they are multinational companies with an extensive
The GPTW® organization invites firms that have been in business for brand portfolio, they also recourse to cultural and geographic locations
at least ten years and employ a minimum of 500 people to distribute a to ensure glocality (a multinational company providing local branding
59-item attitude survey to 250 randomly selected employees. The features). With product branding, branding occurs mainly via products
GPTW® Trust Index© is designed to measure a broad range of attitudes through tangible components such as packaging, texture, taste, and so
grouped under five dimensions; credibility, respect, fairness, pride, and on. If they have their own stores, they complement that branding
camaraderie. strategy with retail strategy by turning stores into experiences to
enchant consumer experience. In that case, employees play a key role in
(1) Credibility items assess employees’ perceptions of management’s ensuring smooth and pleasant experiences contributing to craft BE.
communication practices, competence, and integrity, which are Second, companies in the insurance and telecommunications sectors
pivotal in promoting trustworthiness, leading to trust in the tend to combine service branding and corporate branding types. Unlike
workplace. product branding, which is easily brandable through tangible artifacts
(2) Respect items capture employees’ perceptions of professional (e.g., packaging), service branding needs to be more creative. It relies
support, collaboration, and involvement in decisions and the more heavily on employees, especially frontline ones at the consumer
level of care management shows for employees as people. interface, to convey brand identity and values. The pressure on em
(3) Fairness items measure the equity, impartiality, and justice em ployees might therefore be higher for service branding. Besides, in
ployees experience in the workplace. contrast to the preceding branding types, corporate branding is much
more focused on branding internally to employees through a series of
actions and design choices articulating clearly the brand to employees,
investing heavily in company culture and recruitment while taking care
in responding to events and partnering with specific charities in line
with the business and that might strongly appeal to employees.
Third, fast food companies tend to limit themselves to service
branding.
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Stone et al., 2004). The BrandZ™ index incorporates three BE di fairness = 0.529, pride = .563, camaraderie = 0.623) (Nunnally &
mensions that prompt people to buy and pay more for Bernstein, 1994), indicating convergent validity. All constructs satisfy
brands—meaningfulness, difference, and salience—and sums them to the stringent test of discriminant validity suggested by Fornell and
measure brand contributions (BrandZ™ Global Report 2020). Difference Larcker (1981) (see Table 2). Furthermore, all measurement scales
is the extent to which brands are perceived as “unique in a positive way produce high-reliability indexes (i.e., Cronbach’s alphas and composite
and ‘set the trends,’ staying ahead of the curve for the benefit of the reliabilities), greatly exceeding the 0.70 threshold (Raykov, 1997). Since
consumer”; meaningfulness refers to the extent to which brands “appeal multiple regression analysis is used, we collapse the multiple items per
more, generate greater ‘love’ and meet the individual’s expectations and construct into a single item (i.e., credibility, respect, fairness, pride,
needs”; and salience is the extent to which brands “come spontaneously camaraderie) to conduct the analysis.
to mind as the brand of choice for key needs” (BrandZ™ Global Report Furthermore, the high intra-class correlations within the five
2020). This study thus uses the BrandZ™ construct to operationalize the GPTW® constructs (α = 0.953) confirmed the suitability of collapsing
consumer-based BE concept. each dimension into a single item, GPTW, before statistical analyses.
4.2. Measurement model To test the effect of the interaction between BE and hierarchical level
on employee attitudes, a series of regression-based bootstrapping ana
A confirmatory factor analysis (CFA) (EQS 6.0) using the robust lyses of moderation (Hayes, 2017) was conducted, following previous
maximum likelihood procedure on the 59-item GPTW measurement literature (e.g., Giebelhausen et al., 2016). Indeed, we can test whether
scale offers a good fit ([χ 2(1749) )] = 20,113.23.00, GFI = 0.934, AGFI = the interaction effects are of the moderating or mediating type. The
0.926, SRMR = 0.047, RMSEA = 0.035). The chi-square appears inflated bootstrap PROCESS model 1 was specified with 10,000 resamples at a
by the sample size (West et al., 2012). All item loadings are significant 95% confidence interval and all covariates. In addition, we include the
and close to or over the 0.70 threshold (Bagozzi & Yi, 1989). The dummy variable “services” in our models to take into account the
average variances extracted (AVEs) of the GPTW® dimensions also are multilevel structure of our data. The following equation was thus esti
above the 0.50 threshold (i.e. credibility = 0.586, respect = .513, mated:
Table 2
Means, standard deviations, and intercorrelation matrix.
Variables 1 2 3 4 5 6 7 8 9 10 11 12
1. Credibility 1
2. Respect .631*** 1
3. Fairness − .714*** − .550*** 1
4. Pride − .832*** − .626*** .698*** 1
5. Camaraderie .002*** − .033*** − .024*** .030*** 1
6. Brand equity .018 − .018 − .007 − .141*** − .027* 1
7. Hierarchical level .088*** .109*** .131*** .159*** .137*** − .072*** 1
8. Tenure − .086*** − .079*** − .093*** .042*** − .098*** − .305*** .001 1
9. Full-time .017 − .022* − .015*** − .169*** − .033** .409** − .271*** − .268*** 1
10. Female .043*** .060*** .062*** .046*** .053*** − .028*** .205*** − .039*** − .161*** 1
11. Services − .302*** − .315*** − .320*** − .344*** − .319*** .405*** − .238*** − .106*** .265*** − .216*** 1
12. Company size (log − .055*** − .065*** − .059*** .011 − .077*** − .024*** − .374*** .340*** − .100*** − .252*** .305*** 1
of sales)
M 42.60 26.26 29.07 20.31 39.53 173.64 1.74 3.45 0.83 0.51 0.59 20.81
SD 9.13 6.25 7.31 4.30 8.03 134.83 .89 1.71 0.37 0.50 0.49 1.01
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/ /
EmployeeAttitudeij = β0 + β1 BrandEquityij + β2 Technicians Agentsij + β3 Executivesij + β4 TopManagementij + β4 BrandEquityij × Technicians Agentsij
+β4 BrandEquityij × Executivesij + β4 BrandEquityij × TopManagementij + β5 FullTimeij + β6 Femalesij + β7 Servicesij + β8 Tenure2 − 5Yearsij + β9 Tenure6
− 10Yearsij + β10 Tenure11 − 15Yearsij + β11 Tenure16 − 20Yearsij + β12 TenureMoreThan20Yearsij + β13 Firmsizeij + εij , (1)
6. Conclusions
Fig. 2. Top managers’ more favorable attitudes than employees. The two strands of research – namely, BE and human capital – have
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Fig. 3. Executives’ less favorable attitudes when working for stronger brands.
Table 4
Regression analysis results for the impact of top management-executive misalignment on the brand equity – lower-ranking employee attitude link.
V Variables Model 1 (regression analysis) Model 2 (bootstrapping – Model 3 (bootstrapping –
services sample) manufacturing sample)
Intercept (β0 ) 4.727 .694 − 6.811*** 3.754 .710 5.289*** 1.270 .133 9.527***
Control
Full-time (β5 ) .033 .038 2.215* .256 .042 6.066*** .006 .072 .077 (n.s.)
Females (β6 ) .011 .026 .890 (n.s.) .023 .030 .786 (n.s.) .016 .033 .478 (n.s.)
Services (β7 ) − .251 .039 − 13.944*** – – – – – –
Tenure – 2 to 5 years (β12 ) − .109 .043 − 6.731*** − .289 .047 − 6.175*** − .306 .056 − 5.423***
Tenure – 6 to 10 years (β13 ) − .197 .045 − 11.548*** − .459 .050 − 9.183*** − .432 .055 − 7.809***
Tenure – 11 to 15 years (β14 ) − .198 .047 − 11.514*** − .410 .055 − 7.431*** − .444 .058 − 7.609***
Tenure – 16 to 20 years (β15 ) − .164 .054 − 10.634*** − .332 .068 − 4.903*** − .557 .063 − 8.801***
Tenure – 20 years or more (β16 ) − .233 .045 − 12.417*** − .378 .057 − 6.650*** − .568 .055 − 10.371***
Firm size − .174 .034 − 5.496*** − .046 .028 − 1.648*** − .044 .029 − 1.554***
Simple effects
Top management – executive attitude misalignment (β1 ) − .255 .004 − 10.202*** .048 .017 2.849** − .032 .424 − .075 (n.s.)
Interactions
Top management – executive attitude misalignment × Power (βi8 ) − .121 .013 − 9.623*** − .021 .047 − .449 (n.s.)
proceeded in parallel, with little cross-over, despite apparent synergy, specifically to workers, technicians, and agents. Yet, the effect is nega
thus limiting the incorporation of research findings into corporate tive for mid-level executives and non-significant for top managers. Be
strategy formulation. This article presents an attempt to explore the sides, the influence of BE on employee attitudes is more prevalent in
nexus of these two areas answering previous calls for topical research (e. services firms, consistent with the notion that BE is inherently more
g., Moorman & Day, 2016). The literature appears unequivocal about important for service firms (Berry, 2000; Vomberg et al., 2015).
the positive impacts of strong brands; but less so about its adverse effects These findings enrich and extend the contemporary perspective on
(Moorman & Day, 2016). This study emphasizes an intrinsically mar social exchange theory (SET) which posits that people “repay” favorable
keting–anchored approach by which firms can regulate work relations or unfavorable treatments that they receive from social entities,
by investing in strong brands, and it identifies instances in which such including organizations and brands (Emerson, 1981; Foa & Foa, 1974;
investments are less beneficial. In many cases, negative results are Schminke et al., 2002). The results suggest that for employees, the
attributed to “brand-building issues,” and both consultants and aca repayment is positive since they develop positive attitude toward strong
demics offer suggestions to prevent these problems (Christodoulides & brand providing them higher socioemotional benefits (e.g., prestige,
de Chernatony, 2010; De Chernatony, 2010). An emerging strand of pride, identity-building). In contrast, for middle-level managers, the
research examines the negative impact of brands (Fetscherin et al., additional workload managers incur to sustain stronger brands (in
2019; Hu et al., 2018; Veloutsou et al., 2020). However, these studies contrast to weaker ones) (Osterman, 2009), does lead to negative reci
essentially focus on consumers, with little research on employees, procity in the form of lower employee attitude. In other words, the tacit
despite the crucial implications for internal marketing and employer reciprocity in relationship with the brand (Organ, 1988; Shore et al.,
branding. The current research contributes to this emerging area by 2006) is seemingly negative at that specific hierarchical level.
showing that stronger BE affects employee attitudes positively, but this Furthermore, our findings extend internal marketing research (e.g.,
effect is subject to boundary conditions. The positive effect applies Mölk & Auer, 2018; Morhart et al., 2009; Russell & Brannan, 2016;
8
M. Ertz et al. European Management Journal xxx (xxxx) xxx
Wieseke et al., 2009) that emphasize the role of leaders in conveying BE theoretically related constructs that explain executives’ proclivity to
and values to lower-ranking employees with novel insights about em show less favorable attitudes when working for strong brands. For
ployees at other hierarchical levels. Indeed, our study sheds new light on example, the current theoretical framework suggests that perceived
the effect of BE on employees’ attitudes across hierarchical levels: Beyond advantages and efforts may lower attitudinal levels (Homans, 1974).
recognizing the role of leaders in conveying BE to employees, prior The psychology and behavioural literature could provide deeper insights
literature provides little insight into how this role may differ depending into this mechanism. Strong brands improve employee attitudes through
on the extent to which alignment at the managerial team level is ach the symbolic capital and the identity-creating potential they provide for
ieved. Hence our results suggest that the positive BE-attitude link is best employees (Endrissat et al., 2017; Tavassoli et al., 2014) so that they
achieved when top managers and mid-level executives exhibit aligned derive pride and prestige from working for strong brands, which en
attitudes. Greater top manager/mid-level executive alignment hances their ego and bolsters their self-esteem and motivation to use
(misalignment) has a positive (negative) impact on lower-ranking em their skills (Lievens et al., 2007). Meanwhile, such strong brands require
ployees’ attitudes. sacrifices from employees, such as accepting lower wages for example
On a more general level, our results challenge and extend established (Cable & Turban, 2003; Tavassoli et al., 2014). Therefore, future
thinking about the role of leaders in conveying BE to other employees. research could investigate in greater depth those underlying mecha
The understanding provided by this study on the extent to which BE nisms related to symbolic capital, identity-creation, self-esteem, and
affects human capital has important implications for the marketing motivation to further explain the observed result of lower employee
literature, in general, and the internal marketing literature in particular. attitude at the middle management level in the context of stronger BE.
Second, though the results were consistent with theoretical and empir
6.2. Managerial implications ical underpinnings, additional studies should investigate the proposed
relations using other methodologies. For example, a longitudinal study
Because the core responsibilities of mid-level executives are could examine the impact of evolutionary brand-building efforts on
increasing (Osterman, 2009), firms should consider implementing stra employees’ attitudes over time. Third, although the measurement scales
tegies to offset the dampening effect of BE on executives’ attitudes. They used for BE and employee attitudes have been well supported in past
should invest in marketing to create a strong BE because it is a powerful research, other scales could be considered. Fourth, our employee atti
way to improve most employees’ attitudes. To foster employee-based tude data came from a French sample. Although similar to Western
brand equity, firms should communicate the brand and its BE more cultures in several respects, the French differ in their relationships to
intensively to employees through various branding strategies adapted to authority. France’s score of 68 on Hofstede’s (2017) hierarchical dis
internal branding such as brand ambassador programs (Schmidt & tance dimension is closer to Japan’s (54), South Korea’s (60), or China’s
Baumgarth, 2018) or classical advertising (Gilly & Wolfinbarger, 1998), (80) than to those of the United States (40) or the United Kingdom (35).
and more generally a stronger brand orientation (Urde, 1999) and Accordingly, the expectations of managers—that is, the mid-level ex
transformational leadership (Bass & Riggio, 2006). Firms that seek to ecutives who interface with both lower-ranking employees and the
implement internal marketing should adopt a comprehensive approach highest-ranking executives—may be stronger. Our results should be
by implementing the five facets of internal marketing, including (1) replicated in other countries and cultures with lower power distance
management support (e.g., active care of staff), (2) education and scores. Fifth, our quantitative approach prevented us from grasping
training (e.g., helping employees to understand customer needs), (3) deeper insights related to the interplay of other potentially crucial var
internal communications (e.g., conveying ideas and values to staff), (4) iables that could explain the observed effect in employee attitudes such
personnel management (e.g., clear performance evaluation system), and as management control (Chen & Wu, 2016; George & Gronroos, 1989;
(5) external activities (e.g., enhancing employees’ identity through ac Joseph, 1996), employer branding (Mölk & Auer, 2018; Morhart et al.,
tivities) (Chen & Wu, 2016; George & Gronroos, 1989) or along with the 2009; Russell & Brannan, 2016; Wieseke et al., 2009), and symbolic and
suggestions of Joseph (1996), the latter including comprehension of cultural representation (Endrissat et al., 2017; Russell & Brannan, 2016;
employee morale or implementation of mechanisms to promote the Tavassoli et al., 2014). Therefore, qualitatively-oriented research could
willingness of management to listen to employee opinions, among investigate how these variables intermingle and interact with BE and the
others. hierarchical level in explaining employee attitude. Finally, branding is
By emphasizing firms’ credentials as great places to work (Ambler & more related to the marketing function, and mid-level managers in this
Barrow, 1996), communications can leverage brands as a means to re area may benefit more while feeling higher work pressure from a firm’s
cruit employees (Hieronimus et al., 2005), though mainly for strong brand. Future studies could seek to investigate whether this
lower-ranking or top-management positions, by manufacturing firms, finding holds across other organizational functions.
for full-time jobs, and with new employees. Associations with brands
should be made less salient for mid-level executives, part-time jobs, Declarations of competing interest
services settings, and long-tenured staff. Firms instead should invest in
offsetting the negative effects of strong brands on the attitudes of these None.
latter types of employees. The downside of greater expectations can be
offset by offering increased compensation, whether socioemotional (e. Acknowledgement
g., rewards, recognition, concrete acts of appreciation) or utilitarian (e.
g., bonuses, free time, benefits). Firms also should invest in developing Support by the EDF Chair and a public grant overseen by the French
their managers’ skills and knowledge to improve their capacity to National Research Agency (ANR) as part of the Investissements d’Avenir
handle the increased expectations associated with strong brands program (ANR-11-IDEX-0003/Labex Ecodec/ANR-11-LABX-0047) is
(Vomberg et al., 2015). The results suggest that branding has a key in acknowledged and greatly appreciated by the authors.
fluence on employee attitudes. Yet, psychological and behavioral vari
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