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

Abstract Brand orientation is a management philosophy that places the brand at the centre of management decision-making and is critical for developing strong, competitive brands. This study aimed to identify the internal elements/drivers necessary for brand orientation development in small and medium-sized enterprises (SMEs). Using a novel, multidimensional approach to brand orientation, this study contributes towards understanding SME brand orientation in emerging markets. Building on the literature on brand orientation, brand development and SME branding, the study sought to identify the dimensions and constituents of brand orientation of SMEs in emerging economies from the perspective of owners/managers. This quantitative study relied on data obtained from a questionnaire administered to 265 owners/managers of SMEs in Tshwane, South Africa. Building on insights gained through partial least squares path modelling (PLS-SEM), the findings revealed that brand development is a significant dimension of brand orientation while brand resources, brand characteristics, brand perception and perceived advantage are not. The most transformative insight from the study was that for SMEs, brand resources are not positively related to brand orientation, hence, an SME with resource constraints can also be brand oriented. Furthermore, the findings showed that some of the proposed brand orientation dimensions are positively related to one another, indicating the need for a multi-dimensional approach to the brand-building process. From a practical standpoint, the study suggests that given how resource constraints do not hinder brand orientation, SMEs should prioritise resource-independent brand orientation by leveraging intangible assets such as their expertise, networks and commitment to quality.