Building strong customer relationships through brand orientation in small service firms: An empirical investigation

Abstract

The purpose of this paper is to empirically examine the relationship between the adoption of a brand orientation strategy and customer relationship performance in a small service firm setting. More specifically, in addition to investigating the direct link between brand orientation and customer relationship performance, we further examine the moderating effects of entrepreneurial orientation and perceived competitive intensity on the empirical link between brand orientation and customer relationship performance. To test the hypothesized relationships in the conceptual framework, 105 usable structured questionnaires were collected from small service firms and the data were further analyzed using a hierarchical, moderated regression analysis. The results affirm the positive link between brand orientation and customer relationship performance. Moreover, entrepreneurial orientation is found to strengthen the brand orientation-customer relationship performance link. However, our results show that competitive intensity does not significantly moderate the brand orientation-customer relationship performance link. Nonetheless, it is highly suggestive that perceived competitive intensity is a direct predictor of customer relationship performance. In terms of the practical significance of the overall research model, the effect size is fairly large (Cohen’s f 2 = 0.33). The research implications and directions for future research are further highlighted in the penultimate section of the paper. © 2015, Institute of Economics (Zagreb). All rights reserved.