Raphael Odoom, University of Ghana: "Branding as a Competitive Strategy for Enterprise Development – A Study of SMEs in Ghana"

Abstract

The study examines how small and medium-sized enterprises (SMEs) develop product branding capabilities that enable them to create and sustain branding benefits amidst the constraints of their context (internal and external environment) within their resource positions. Drawing on the resource-based theory and dynamic capability theory, this research looks at the key role played by SME resources in facilitating SME branding efforts and generation of branding capability. Drawing on conceptualizations from extant literature, the study first attempts to develop a branding capability scale for small firms and subsequently test them on SMEs in Ghana. Results indicated that that SMEs generate branding capability via three key magnitudes; (1) being capable of utilizing the firm’s branding know-how in employing new approaches to meet customer demands; (2) gaining creativity in methods of operation as compared to their competitors and; (3) having the capacity to mobilize a bundle of interrelated organizational routines to performing branding activities. In addition, results suggested not only are resources needed by SME owners in their product branding practices but also gave an indication that at any point in time, an increase in the enterprise’s resource position is more likely to enhance their generation of branding capability.