Abstract
Employee-based brand equity (EBBE) is a term that has recently emerged in the business world. Many organizations are placing a strong emphasis on the development of their personnel to efficiently deliver brand promises and acquire a competitive advantage over their competitors. Therefore, this chapter examines the EBBE from various perspectives to improve the firms' competitive advantages and long-term profitability. As a result, prior literature identified some critical factors as the dimensions of the EBBE, such as the employee brand knowledge effects, internal brand management, and benefits of EBBE that help the organizations in increasing their competitive advantages to sustain their businesses in competitive markets. Similarly, some critical factors help the firms in improving their employee's satisfaction. Thus, organizations should concentrate their efforts and resources on developing internal brand strategies (EBBE) in order to boost their external branding strategies (CBBE). As a result, they can develop sustainable competitive advantages in order to flourish in markets.
TopIntroduction
It is not easy to achieve long-term competitive advantages by providing functional and tangible benefits in today's fragmented and competitive marketplaces. Earlier studies suggested that competitive advantages can be acquired through improving an organization's overall productivity, for example, through skill and knowledge development (King & Grace, 2010; Vargo & Lusch, 2004). While functional advantages may be copied, emotional advantages can be used to obtain a competitive advantage. Thus, corporations seek competitive advantage by leveraging functional and emotional benefits in today's era (Altaf et al., 2021; King & Grace, 2010). In general, successful brands have a high level of brand equity, and successful companies have a higher level of brand quality, brand awareness, brand loyalty, and brand credibility (Papasolomou & Vrontis, 2006).
Previously, brands were defined as the entity, trademark, or logo that served to represent a company's product or service in a competitive environment (Mustaqiem et al., 2021). Employees of the organization can rely on and manage brand implications by creating and maintaining brand characters and values. Nowadays, brands have widened their definitions to include stakeholders, such as shareholders, customers, suppliers, employees, etc. (Kim et al., 2011). Firms are developing their brands in various ways in the contemporary age. These brands can be classified into two external and internal categories, i.e., consumer-based brand equity (CBBE) and employee-based brand equity (EBBE) (King & Grace, 2009). CBBE is wholly focused on the customer, also referred to as external brand management (Keller, 1993). The second internal brand category is EBBE, primarily concerned with the employees' perspective; it is also referred to as internal brand management (King & Grace, 2010). As a result, these brand categories have contributed to the organization's growth and have developed into significant sources of sustained competitive advantage (Smith et al., 2021; Veloutsou & Delgado-Ballester, 2018). To thrive in a competitive market area, employees must be aligned with the firm's value offer. When employees perceive the required brand quality in accordance with the apparent nature of the brand guarantee, the employee brand equity model indicates that customer satisfaction is achieved (Simi, 2014). It is critical for an organization to empower its employees in terms of brand equity in order to be dominant in external markets. To successfully execute internal branding initiatives such as EBBE, employee relationships with customers are critical since it results in customer satisfaction in brand understanding and communication. Several researchers emphasized the importance of brands as a competitive advantage for SMEs in order to ensure their long-term success (A. Muhammad et al., 2019; Mustaqiem et al., 2021; Safeer et al., 2018; Safeer et al., 2019).
Key Terms in this Chapter
Brand Citizenship Behavior (BCB): Employee behavior toward brand citizenship is described as volunteer efforts that extend beyond the scope of the job in the domain of demonstrating brand ownership.
Openness: It refers to an employee's openness to exchanging information, understanding what is happening, and appreciating. However, it also entails being responsive to and expecting various working methods, assessments, and feedback.
Human (H) Factor: It defines a thorough understanding of employees' capabilities, traits, and barriers in order to improve job performance through organizational design and structure.
Employee Satisfaction: Employee satisfaction refers to the extent to which the employee is satisfied with his or her work and the role he or she performs in the organization.
Positive Employee Word of Mouth (WOM): Positive word of mouth refers to an employee's positive attitude regarding his or her organization's products and services, as well as educating others about the brand's greatness and functionality.
Brand Commitment: It is the degree to which an employee has an emotional connection to the brand and exhibits attachment.
Employee-Based Brand Equity (EBBE): It is the differentiation created when brand information is conveyed through employees, eliciting an emotional response to their workplace. In other words, it serves as a catalyst for employees to act appropriately and communicates the brand promise.