The power of the past: assessing the impact of brand heritage for suppliers

Purpose Brand heritage has gained traction in the B2C literature. However, its effects on the relationship with buyers in a B2B context, as well as the mechanisms for and conditions under which such effects are observed, remain underexplored. This study aims to examine and provide empirical evidence for perceived quality and identification – two critical determinants of close B2B relationships – as mechanisms that explain the effects of suppliers' brand heritage on buyer loyalty. Further, this research identifies past time orientation and supplier size as boundary variables for the positive effects of suppliers' brand heritage. Design/methodology/approach Three empirical studies were conducted to test the conceptual model. In Study 1, 211 professional buyers participated in a cross-sectional study by completing an online questionnaire. The data were analyzed through Partial least squares structural equation modeling. In Studies 2 and 3, 235 and 465 individuals, respectively, with professional experience in negotiation participated in experimental studies, providing support for causality across the hypotheses. Moderated mediation and floodlight analysis were performed. Findings This research provides consistent evidence for the hypotheses. First, the findings show that suppliers' heritage positively affects buyer-supplier identification and quality perceptions in B2B markets, these variables mediating the effect of supplier brand heritage on trust. Second, the authors found support for past-time orientation and supplier size as boundary conditions. Specifically, past-oriented buyers tend to be more loyal toward suppliers boasting a heritage, and such heritage prompts stronger buyer-supplier identification for larger (versus smaller) suppliers. Research limitations/implications Caution is needed when generalizing the results observed in this research to broader populations. Because the data were collected only in France and the USA and not in a broader set of countries, generalizability to other cultural settings may be limited. In addition, other effects of supplier heritage on buyer perceptions or behavior could be explored in the B2B branding context. For instance, future studies could explore the relationship between B2B brand heritage and legitimacy, a variable of strong interest for company performance. Practical implications Supplier – especially those of larger firms – managers should select the facets and episodes from their company's heritage most likely to elicit identification. In this regard, companies can extol their brands in different ways to enhance buyers' perception of heritage and, subsequently, identification. Building on the notion that distinctiveness, warmth and memorable experiences are strong drivers of identification, B2B brands would gain in communicating about themselves as having a unique and distinctive heritage through the success or personality of current or past leaders (e.g. CEOs, founders) or the successes of brand products or services over time. Originality/value To the best of the authors' knowledge, this research is the first to explore the influence of supplier brand heritage on buyer-supplier relationship and loyalty in the B2B context. Beyond mere quality, this research finds buyer-supplier identification as a mechanism explaining why suppliers' brand heritage boosts buyers' loyalty. This research also determines the conditions (i.e. past-time orientation and supplier size) in which the effects of brand heritage are seen in supplier-buyer relationships.