IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i7p2939-d342393.html
   My bibliography  Save this article

Effects of Sustainable Brand Equity and Marketing Innovation on Market Performance in Hospitality Industry: Mediating Effects of Sustainable Competitive Advantage

Author

Listed:
  • Ijaz Hussain

    (Department of Management Sciences, National College of Business Administration and Economics, Lahore 54660, Pakistan)

  • Shaohong Mu

    (School of Accountancy, Shandong University of Finance and Economics, Jinan 250014, China)

  • Muhammad Mohiuddin

    (School of Business and Economics, Thompson Rivers University, Kamloops, BC V2C 0C8, Canada)

  • Rizwan Qaiser Danish

    (Hailey College of Commerce, University of the Punjab, Lahore 54590, Pakistan)

  • Shrafat Ali Sair

    (Hailey College of Commerce, University of the Punjab, Lahore 54590, Pakistan)

Abstract

This study examines the effects of sustainable marketing assets, such as brand equity and marketing innovation, on market performance in the presence of sustainable competitive advantage as a mediator in the hospitality industry. Data were collected from hotel/restaurant customers (N = 360) on a Likert scale from 1= strongly disagree to 5 = strongly agree and analysis was conducted using the structural equation modeling (SEM) technique. The objective of this study is to understand the relationship among brand equity, marketing innovation, sustainable competitive advantage, and market performance in the hotel/restaurant industry. The results show that sustainable marketing assets have positive and significant effects on market performance. This study also demonstrates that sustainable competitive advantage fully mediates the relationship between brand equity and market performance while partially mediating the relationship between marketing innovation and market performance. The findings of this research can contribute to formulating effective marketing strategies for attracting customers, emphasizing sustainable issues in the hospitality sector, such as hotels/restaurants. This research adds practical value to the literature on brand equity, marketing innovation, sustainable competitive advantage, and market performance in the service industry.

Suggested Citation

  • Ijaz Hussain & Shaohong Mu & Muhammad Mohiuddin & Rizwan Qaiser Danish & Shrafat Ali Sair, 2020. "Effects of Sustainable Brand Equity and Marketing Innovation on Market Performance in Hospitality Industry: Mediating Effects of Sustainable Competitive Advantage," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2939-:d:342393
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/7/2939/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/7/2939/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shelby D. Hunt, 1997. "Resource-Advantage Theory: An Evolutionary Theory of Competitive Firm Behavior?," Journal of Economic Issues, Taylor & Francis Journals, vol. 31(1), pages 59-78, March.
    2. Youn Kue Na & Sungmin Kang & Hye Yeon Jeong, 2019. "The Effect of Market Orientation on Performance of Sharing Economy Business: Focusing on Marketing Innovation and Sustainable Competitive Advantage," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    3. Aksoy, Hasan, 2017. "How do innovation culture, marketing innovation and product innovation affect the market performance of small and medium-sized enterprises (SMEs)?," Technology in Society, Elsevier, vol. 51(C), pages 133-141.
    4. Buesa, Mikel & Heijs, Joost & Baumert, Thomas, 2010. "The determinants of regional innovation in Europe: A combined factorial and regression knowledge production function approach," Research Policy, Elsevier, vol. 39(6), pages 722-735, July.
    5. Gupta, Suraksha & Malhotra, Naresh K. & Czinkota, Michael & Foroudi, Pantea, 2016. "Marketing innovation: A consequence of competitiveness," Journal of Business Research, Elsevier, vol. 69(12), pages 5671-5681.
    6. Michalis Makrominas, 2017. "Recognized intangibles and the present value of growth options," Review of Quantitative Finance and Accounting, Springer, vol. 48(2), pages 311-329, February.
    7. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    8. Wang, David Han-Min & Chen, Pei-Hua & Yu, Tiffany Hui-Kuang & Hsiao, Chih-Yi, 2015. "The effects of corporate social responsibility on brand equity and firm performance," Journal of Business Research, Elsevier, vol. 68(11), pages 2232-2236.
    9. Hooley, Graham J. & Greenley, Gordon E. & Cadogan, John W. & Fahy, John, 2005. "The performance impact of marketing resources," Journal of Business Research, Elsevier, vol. 58(1), pages 18-27, January.
    10. Low, Joyce M.W. & Lee, Byung Kwon, 2014. "Effects of internal resources on airline competitiveness," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 23-32.
    11. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    12. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    13. Adriana ZAIT & Patricea Elena BERTEA, 2014. "Financial Literacy – Conceptual Definition and Proposed Approach for a Measurement Instrument," The Journal of Accounting and Management, Danubius University of Galati, issue 3, pages 37-42, December.
    14. Muhammad Mohiuddin & Abdullah Al Mamun & Fazal Ali Syed & Muhammad Mehedi Masud & Zhan Su, 2018. "Environmental Knowledge, Awareness, and Business School Students’ Intentions to Purchase Green Vehicles in Emerging Countries," Sustainability, MDPI, vol. 10(5), pages 1-18, May.
    15. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    16. Shelby D. Hunt, 2011. "Developing successful theories in marketing: insights from resource-advantage theory," AMS Review, Springer;Academy of Marketing Science, vol. 1(2), pages 72-84, June.
    17. Shane, Hilary & Klock, Mark, 1997. "The Relation between Patent Citations and Tobin's Q in the Semiconductor Industry," Review of Quantitative Finance and Accounting, Springer, vol. 9(2), pages 131-146, September.
    18. Wang, Hui-Ming Deanna & Sengupta, Sanjit, 2016. "Stakeholder relationships, brand equity, firm performance: A resource-based perspective," Journal of Business Research, Elsevier, vol. 69(12), pages 5561-5568.
    19. Mustafa Ciftci & Nan Zhou, 2016. "Capitalizing R&D expenses versus disclosing intangible information," Review of Quantitative Finance and Accounting, Springer, vol. 46(3), pages 661-689, April.
    20. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    21. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    22. Dauvergne, Peter, 2013. "Eco-Business: A Big-Brand Takeover of Sustainability," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262018760, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Farzana Riva & Solon Magrizos & Mohammad Rabiul Basher Rubel & Ioannis Rizomyliotis, 2022. "Green consumerism, green perceived value, and restaurant revisit intention: Millennials' sustainable consumption with moderating effect of green perceived quality," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2807-2819, November.
    2. Zdenka Gyurák Babeľová & Augustín Stareček, 2021. "Evaluation of industrial enterprises' performance by different generations of employees," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 346-362, December.
    3. Ramazan Eren & Abdullah Uslu & Ayla Aydın, 2023. "The Effect of Service Quality of Green Restaurants on Green Restaurant Image and Revisit Intention: The Case of Istanbul," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    4. Eunkyung Lee & Ji-Hern Kim & Chang Seop Rhee, 2021. "Effects of Marketing Decisions on Brand Equity and Franchise Performance," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    5. Jeou-Shyan Horng & Chih-Hsing Liu & Sheng-Fang Chou & Tai-Yi Yu & Da-Chian Hu, 2022. "Marketing Management in the Hotel Industry: A Systematic Literature Review by Using Text Mining," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    6. Ming Li & Chee Hua Chin & Shangke Li & Winnie Poh Ming Wong & Jun Zhou Thong & Kang Gao, 2022. "The Role of Influencing Factors on Brand Equity and Firm Performance with Innovation Culture as a Moderator: A Study on Art Education Firms in China," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    7. Ibrahim Almahdi Jibril & Mehmet Yeşiltaş, 2022. "Employee Satisfaction, Talent Management Practices and Sustainable Competitive Advantage in the Northern Cyprus Hotel Industry," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    8. Muhammad Mohiuddin & Elahe Hosseini & Sedigheh Bagheri Faradonbeh & Mehdi Sabokro, 2022. "Achieving Human Resource Management Sustainability in Universities," IJERPH, MDPI, vol. 19(2), pages 1-19, January.
    9. Christoph Bey & Dirk C. Moosmayer, 2023. "Making a Brand Loved Rather Than Sustainable? Cosmopolitanism and Brand Love as Competing Communication Claims," Sustainability, MDPI, vol. 15(13), pages 1-13, July.
    10. Shiyong Zheng & Xinsen Ye & Weili Guan & Yuping Yang & Jiaying Li & Biqing Li, 2022. "Assessing the Influence of Green Innovation on the Market Performance of Small- and Medium-Sized Enterprises," Sustainability, MDPI, vol. 14(20), pages 1-14, October.
    11. Daniel Adrian Gârdan & Ionel Dumitru & Iuliana Petronela Gârdan & Carmen Adina Paștiu, 2020. "Touristic SME’s Competitiveness in the Light of Present Challenges—A Qualitative Approach," Sustainability, MDPI, vol. 12(21), pages 1-18, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luciana Oranges Cezarino & Marlon Fernandes Rodrigues Alves & Adriana Cristina Ferreira Caldana & Lara Bartocci Liboni, 2019. "Dynamic Capabilities for Sustainability: Revealing the Systemic Key Factors," Systemic Practice and Action Research, Springer, vol. 32(1), pages 93-112, February.
    2. Desirée Knoppen & Louise Knight, 2022. "Pursuing sustainability advantage: The dynamic capabilities of born sustainable firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1789-1813, May.
    3. André van Stel & Lorraine Uhlaner & Haibo Zhou & Valerie Duplat, 2012. "Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth," Scales Research Reports H201211, EIM Business and Policy Research.
    4. Baraldi, Enrico & Gressetvold, Espen & Harrison, Debbie, 2012. "Resource interaction in inter-organizational networks: Foundations, comparison, and a research agenda," Journal of Business Research, Elsevier, vol. 65(2), pages 266-276.
    5. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2023. "Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures," International Business Review, Elsevier, vol. 32(4).
    6. Yasean A. Tahat & Ahmed H. Ahmed & Mohammad M. Alhadab, 2018. "The impact of intangibles on firms’ financial and market performance: UK evidence," Review of Quantitative Finance and Accounting, Springer, vol. 50(4), pages 1147-1168, May.
    7. Adriana Roseli Wünsch Takahashi & Sergio Bulgacov & Elder Semprebon & Mônica Maier Giacomini, 2017. "Dynamic capabilities, Marketing Capability and Organizational Performance," Brazilian Business Review, Fucape Business School, vol. 14(5), pages 466-478, September.
    8. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    9. Beske, Philip & Land, Anna & Seuring, Stefan, 2014. "Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature," International Journal of Production Economics, Elsevier, vol. 152(C), pages 131-143.
    10. Marcello Sansone & Roberto Bruni & Annarita Colamatteo & Maria Anna Pagnanelli, 2017. "Dynamic capabilities in retailers? marketing strategies: Defining an analysis model," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2017(2), pages 17-42.
    11. Marco Bettiol & Maria Chiarvesio & Eleonora Di Maria & Raffaella Tabacco, 2016. "Luxury Firms in China: The Role of Design and Marketing Capabilities," Global Business Review, International Management Institute, vol. 17(6), pages 1269-1279, December.
    12. Tat Dat Bui & Mohd Helmi Ali & Feng Ming Tsai & Mohammad Iranmanesh & Ming-Lang Tseng & Ming K Lim, 2020. "Challenges and Trends in Sustainable Corporate Finance: A Bibliometric Systematic Review," JRFM, MDPI, vol. 13(11), pages 1-26, October.
    13. Davcik, Nebojsa S. & Sharma, Piyush, 2016. "Marketing resources, performance, and competitive advantage: A review and future research directions," Journal of Business Research, Elsevier, vol. 69(12), pages 5547-5552.
    14. Mitrega, Maciej & Siemieniako, Dariusz & Makkonen, Hannu & Kubacki, Krzysztof & Bresciani, Stefano, 2021. "Versatile capabilities for growth in the context of transforming countries: Evidence from Polish manufacturing companies," Journal of Business Research, Elsevier, vol. 134(C), pages 156-170.
    15. Khan, Huda & Khan, Zaheer, 2021. "The efficacy of marketing skills and market responsiveness in marketing performance of emerging market exporting firms in advanced markets: The moderating role of competitive intensity," International Business Review, Elsevier, vol. 30(6).
    16. Heider, Anne & Gerken, Maike & van Dinther, Nicolas & Hülsbeck, Marcel, 2021. "Business model innovation through dynamic capabilities in small and medium enterprises – Evidence from the German Mittelstand," Journal of Business Research, Elsevier, vol. 130(C), pages 635-645.
    17. Alireza Javanmardi Kashan & Kavoos Mohannak & Mirko Perano & Gian Luca Casali, 2018. "A Discovery of Multiple Levels of Open Innovation in Understanding the Economic Sustainability. A Case Study in the Manufacturing Industry," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    18. Lorraine Uhlaner & André Stel & Valérie Duplat & Haibo Zhou, 2013. "Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth," Small Business Economics, Springer, vol. 41(3), pages 581-607, October.
    19. Maribel Guerrero & David Urbano & Fernando Herrera, 2019. "Innovation practices in emerging economies: Do university partnerships matter?," The Journal of Technology Transfer, Springer, vol. 44(2), pages 615-646, April.
    20. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2939-:d:342393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.