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Brand equity and firm performance: the complementary role of corporate social responsibility

Author

Listed:
  • Mahabubur Rahman

    (Rennes School of Business)

  • M. Ángeles Rodríguez-Serrano

    (University Pablo de Olavide)

  • Mary Lambkin

    (University College Dublin)

Abstract

Previous studies have demonstrated the impact of corporate brand equity on firm performance but have not yet investigated moderating effects on this relationship from other dimensions of firm strategy. This study puts forward a contingency model of the relationship between corporate brand equity and firm performance and investigates the moderating effect of one important contingency variable which is the firm’s corporate social responsibility (CSR) strategy. It is tested on a panel dataset of 62 US firms/corporate brands. The results of this study corroborate previous evidence that corporate brand equity has a significant positive impact on market-based performance, measured by market share, as well as on financial performance, measured by Tobin’s q. In addition, the findings indicate that CSR plays a complementary role, positively moderating the relationship between corporate brand equity and firm performance. That is, there is a synergistic connection between brand equity and CSR which increases long-term value over and above the direct impact of corporate brand equity.

Suggested Citation

  • Mahabubur Rahman & M. Ángeles Rodríguez-Serrano & Mary Lambkin, 2019. "Brand equity and firm performance: the complementary role of corporate social responsibility," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 691-704, November.
    • Handle: RePEc:pal:jobman:v:26:y:2019:i:6:d:10.1057_s41262-019-00155-9
    DOI: 10.1057/s41262-019-00155-9
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    Cited by:

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    2. Shaun M. Powell, 2019. "Journal of Brand Management: year end review 2019," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 615-620, November.
    3. Rahman, Mahabubur & Faroque, Anisur R. & Sakka, Georgia & Ahmed, Zafar U., 2022. "The impact of negative customer engagement on market-based assets and financial performance," Journal of Business Research, Elsevier, vol. 138(C), pages 422-435.
    4. Mochales, Gerardo & Blanch, Javier, 2022. "Unlocking the potential of CSR: An explanatory model to determine the strategic character of CSR activities," Journal of Business Research, Elsevier, vol. 140(C), pages 310-323.
    5. Fernanda Muniz & Francisco Guzmán, 2021. "Overcoming the conflicting values of luxury branding and CSR by leveraging celebrity endorsements to build brand equity," Journal of Brand Management, Palgrave Macmillan, vol. 28(3), pages 347-358, May.
    6. Zaheer Alam & Yasir Bin Tariq, 2023. "Corporate Sustainability Performance Evaluation and Firm Financial Performance: Evidence from Pakistan," SAGE Open, , vol. 13(3), pages 21582440231, July.
    7. Marc Dressler & Ivan Paunovic, 2021. "The Value of Consistency: Portfolio Labeling Strategies and Impact on Winery Brand Equity," Sustainability, MDPI, vol. 13(3), pages 1-18, January.
    8. Mahabubur Rahman & Anisur Faroque & Georgia Sakka & Zafar Ahmed, 2022. "The impact of negative customer engagement on market-based assets and financial performance," Post-Print hal-03545814, HAL.
    9. 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.
    10. Edwin Love & Tejvir Sekhon & Tara Ceranic Salinas, 2022. "Do well, do good, and know your audience: the double-edged sword of values-based CSR communication," Journal of Brand Management, Palgrave Macmillan, vol. 29(6), pages 598-614, November.
    11. Luyao Zhi & Hong-Youl Ha, 2023. "Do New Luxury Hotel Promotions Harm Member Customers?," Sustainability, MDPI, vol. 15(10), pages 1-15, May.
    12. Frauke Sander & Ulrich Föhl & Nadine Walter & Vera Demmer, 2021. "Green or social? An analysis of environmental and social sustainability advertising and its impact on brand personality, credibility and attitude," Journal of Brand Management, Palgrave Macmillan, vol. 28(4), pages 429-445, July.
    13. Rahman, Mahabubur, 2023. "The virtuous circle between green product innovation and performance: The role of financial constraint and corporate brand," Journal of Business Research, Elsevier, vol. 154(C).
    14. Zeeshan Ullah, 2023. "The determinants and performance outcome of the firm's capacity to maintain customer loyalty," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 265-279, February.

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