An Inside-out Model of Retail SME Brand Orientation for an Emerging Market

WIID, Johannes; CANT, Michael; SENOOANE, Belinda

doi:10.2478/mdke-2025-0001

Figures & Tables

Path analysis model
Source: own processing — Path analysis model Source: own processing

Hypotheses model with path estimates
Source: own processing — Hypotheses model with path estimates Source: own processing

Path coefficients

H	Path	Coefficient	t-statistic	p-value	Result
H1a	Brand resources → Brand characteristics	-0.226	3.177	0.002**	Accepted
H1b	Brand resources → Brand development	0.223	3.220	0.001**	Accepted
H1c	Brand resources → Brand orientation	0.048	0.508	0.612	Rejected
H1d	Brand resources → Brand perception	0.019	0.286	0.775	Rejected
H1e	Brand resources → Perceived advantage	0.237	3.450	0.001*	Accepted
H2a	Brand characteristics → Brand development	0.163	2.850	0.005*	Accepted
H2b	Brand characteristics → Brand orientation	0.071	0.848	0.397	Rejected
H2c	Brand characteristics → Brand perception	0.000	0.005	0.996	Rejected
H2d	Brand characteristics → Perceived advantage	0.069	1.145	0.253	Rejected
H3	Brand development → Brand orientation	0.329	2.391	0.017	Accepted
H4a	Brand perception → Brand development	0.500	7.439	***	Accepted
H4b	Brand perception → Brand orientation	0.002	0.020	0.984	Rejected
H5a	Perceived advantage → Brand development	0.122	1.732	0.084	Rejected
H5b	Perceived advantage → Brand orientation	-0.025	0.228	0.820	Rejected
H5c	Perceived advantage → Brand perception	0.555	6.561	***	Accepted
	Adjusted R-squared	Statistic	t-statistic	p-value
	Brand characteristics	0.044	1.416	0.157
	Brand development	0.397	6.529	0.000
	Brand orientation	0.106	1.936	0.053
	Brand perception	0.320	3.825	0.000
	Perceived advantage	0.048	1.404	0.161

Convergent validity

Variable	Factor loading	t-statistics	p-value*
Brand resources (BR) (α=0.752, CR=0.706, AVE=0.435)
Financial	0.576	7.470	0.000
Human resources	0.749	11.415	0.000
Time	0.654	8.423	0.000
Responsiveness to publicity	0.655	9.573	0.000
Inspired/uninspired marketing	0.715	11.816	0.000
Lack of branding strategy	0.508	5.094	0.000
Brand characteristics (BC) (α=0.982, CR=0.988, AVE=0.902)
Price of the brand	0.921	32.394	0.000
Guarantee of the brand	0.959	46.192	0.000
Availability of the brand	0.985	66.323	0.000
Innovativeness of the brand	0.983	54.525	0.000
Reliability of the brand	0.984	69.883	0.000
Communication of a brand	0.940	35.722	0.000
Image of the brand	0.989	70.267	0.000
Attitude towards the brand	0.977	52.420	0.000
Performance of the brand	0.956	43.459	0.000
Brand development (BD) (α=0.85, CR=0.888, AVE=0.531)
Brand awareness	0.743	21.413	0.000
Quality of products/services	0.711	15.456	0.000
Repeat purchases	0.715	16.207	0.000
Brand image development	0.815	24.252	0.000
Achievement of competitive advantage over competitors	0.719	15.597	0.000
Evaluation of overall marketing strategy	0.727	16.723	0.000
Building of a solid reputation	0.682	14.484	0.000
Brand orientation (BO) (α=0.653, CR=0.725, AVE=0.686)
Daily marketing operations to long-term branding strategy	0.751	5.145	0.000
Increasing awareness of product/service to reinforce the distinctiveness of the product or service	0.901	7.486	0.000
Perceived advantage (PA) (α=0.863, CR=0.843, AVE=0.414)
It adds value that customers are prepared to pay for	0.600	8.701	0.000
It inspires customer loyalty	0.766	19.800	0.000
It leads to positive word of mouth	0.674	16.121	0.000
The brand owner can charge higher prices	0.357	4.690	0.000
Better access to distribution	0.631	10.379	0.000
The customer will remember the product/service	0.678	13.333	0.000
Less risk for the customer	0.548	7.779	0.000
The brand provides an image of quality	0.772	15.461	0.000
The brand provides an image of reliability	0.697	15.378	0.000
Brand perception (OBP) (α=0.846, CR=0.873, AVE=0.441)
It is important to brand a business	0.487	8.140	0.000
Strong brands exert a halo effect	0.485	8.032	0.000
Strong brands represent different values, traits and characteristics	0.604	11.710	0.000
A strong brand serves as a platform for expansion	0.689	13.611	0.000
An existing retail brand strengthens brand awareness and differentiation from the competition	0.617	12.806	0.000
Branding unlocks profitability	0.457	5.077	0.000
Brands prompt consumer selection	0.633	10.854	0.000
Brands lead to name awareness	0.693	13.448	0.000
Branding signals the building of customer loyalty	0.686	13.142	0.000
Branding signals trust	0.704	16.477	0.000

Fornell–Larcker criterion

ID	Variables	1	2	3	4	5	6
1	Brand resources	0.660
2	Brand characteristics	-0.218	0.950
3	Brand development	0.279	0.124	0.729
4	Brand orientation	0.118	0.102	0.342	0.828
5	Brand perception	0.147	0.007	0.575	0.185	0.643
6	Perceived advantage	0.223	0.020	0.442	0.134	0.572	0.664

Model fit indices

Variable	Statistics	95%	99%
SRMR	0.069	0.076	0.082
d_ULS	4.518	5.523	6.295
d_G	2.842	3.665	4.043

Heterotrait–Monotrait ratio

ID	Variables	1	2	3	4	5
1	Brand resources
2	Brand characteristics	0.244
3	Brand development	0.362	0.129
4	Brand orientation	0.180	0.156	0.427
5	Brand perception	0.226	0.089	0.655	0.206
6	Perceived advantage	0.297	0.133	0.547	0.240	0.695

An Inside-out Model of Retail SME Brand Orientation for an Emerging Market

Figures & Tables

Figure 1.

Figure 2.

Path coefficients

Convergent validity

Fornell–Larcker criterion

Model fit indices

Heterotrait–Monotrait ratio

Paradigm

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