The effects of tech and non-tech innovation on brand equity in China: The role of institutional environments

Recently, innovation has been a key driver of brand equity. However, the emerging economies provide a dynamic institutional environment that makes it difficult to explore the relationship between innovation and brand equity. By combining the brand equity literature and institutional theory, our rese...

Full description

Saved in:
Bibliographic Details
Published inPloS one Vol. 14; no. 5; p. e0215634
Main Authors Yao, Qiong, Huang, Liwen, Li, Mingli
Format Journal Article
LanguageEnglish
Published United States Public Library of Science 08.05.2019
Public Library of Science (PLoS)
Subjects
Administration of justice
Brand equity
Brand identity
Brand image
Business enterprises
Business research
China
Consumers
Content analysis
Cost control
Emerging markets
Financial Statements - economics
Industry - economics
Innovations
Inventions - economics
Marketing
Markets
Models, Theoretical
Organizational aspects
Regional development
Strategic management
Technological change
Technology
China
Online AccessGet full text

Cover

More Information
Summary:Recently, innovation has been a key driver of brand equity. However, the emerging economies provide a dynamic institutional environment that makes it difficult to explore the relationship between innovation and brand equity. By combining the brand equity literature and institutional theory, our research investigates the effects of technical and non-technical innovation on brand equity and how the effects vary within different institutional factors (product market development, regional legal environment). A sample composed of 124 listed companies in China from 2009 to 2014 was analyzed empirically and provides strong support for the theoretical predictions. The results confirm the positive effect of the two innovations on brand equity and the contingent effect of institutional factors as follows: the regional legal system positively moderates the relationship between the two innovations and brand equity, and product market development positively moderates the relation of technical innovation and brand equity; there was found to be no significant influence of non-technical innovation on brand equity. This study provides crucial theoretical and managerial implications for managers.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 23
Competing Interests: The authors have declared that no competing interests exist.
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0215634