Chapter 3 Scale Development
3.1 Organization-level Variable: Corporate Branding
3.1.1 Step 1 Items Development
This study captures conceptions of corporate branding through in-depth interview with practitioners of franchises. There were ten managers who worked in the franchise organization interviewed, including six males and four females. The age
was distributed from 35 to 50, average age was 42, and average tenure was 10 years.
In the process of in-depth interviews, this study first introduced the construct definition of corporate branding to these managers, and then asked them questions about the phenomenon and activities of corporate branding in their company.
Questions of in-depth interview conducted by this study include, “Could you tell me how the senior manager transmits the vision and culture of corporate branding toward organizational members?”“The image of the corporate brand is influenced by internal and external stakeholders, such as frontline employees and customers. Could you tell me how you interact with multiple stakeholders in order to improve the image of the corporate brand?”“Could you tell me what the role leader is in the process of corporate branding?”“Could tell me how different departments of the company coordinate in order to enhance the brand value?”“Could you tell me what practices of brand-related reward are?”“Could you tell me what practices of brand-related training are adopted in your organization?”“Could you tell me what practices of brand-related selection and evaluation are?”“Could you tell me how the company communicates information of the corporate brand with internal and external stakeholders?”Key concepts of corporate branding obtained from in-depth interview are presented in Table 3-1.
Table 3-1 Key Concepts of Corporate Branding Obtained from In-depth Interviews
Questions/concepts Respondents’answers Could you tell me how the senior
manager transmits the vision, culture, and image of corporate branding toward organizational members?
(Vision, culture, and image of corporate branding)
1. The senior manager transmits the vision and culture of corporate branding toward
organizational members via formal meeting or week publications.
2. The vision of the corporate brand is
proposed by the senior manager to become the top one franchisee in Taiwan.
3. The culture of the corporate brand includes sincerity, mutual sharing, and innovation.
4. Our company will create a climate to realize values of the corporate brand.
5. The senior manager transmits the vision and culture of corporate branding toward
organizational members in order to improve the brand image.
The image of the corporate brand is influenced by internal and external stakeholders, such as frontline employees and
customers. Could you tell me how your company interacts with multiple stakeholders in order to improve the image of the
corporate brand?
(Interactions with multiple stakeholders)
1. The senior manager and middle manager accept suggestions provided by the frontline employees.
2. Customers can response their feelings to the company through the phone.
3. Suppliers can response their feelings to the company through interactions with frontline employees.
4. Our company improves the quality of service and product according to
suggestions of employees and customers.
5. Our company conducts innovations of service and product according to
suggestions of employees and customers.
Table 3-1 Key Concepts of Corporate Branding Obtained from In-depth Interviews (Continued)
Questions/concepts Respondents’answers Could you tell me what the role
leader is in the process of corporate branding?
(Leadership of corporate branding)
1. Our senior managers make brand strategies according to brand value proposed by our company.
2. Our senior managers make clear brand goals which become the brand guidelines followed by organizational members.
3. Our senior managers accept the responses of customers in order to improve the quality of product and service.
4. Our senior managers accept the suggestions of organizational members in order to enhance the brand value.
5. Our senior mangers discuss with organizational members through the regular meeting.
6. Our senior transmits mission, goal, and value of the brand toward organizational members through regular meetings.
Could tell me how different departments of the company may coordinate in order to enhance the brand value?
(Departmental coordination)
1. In our company, different departments may work together for designing brand-related activities, such as public service activities contributing the brand image.
2. In our company, different departments often discuss how to make employees express positive behaviors, thus improving the image of the brand.
3. In our company, different departments often exchange information in order to understand customers’perceptions and improve the service quality.
4. Different departments in our company work together to realize the commitment toward customers.
5. Different departments in our company work together to realize the commitment toward organizational members.
Table 3-1 Key Concepts of Corporate Branding Obtained from In-depth Interviews (Continued)
Questions/concepts Respondents’answers Could you tell me what practices
of brand-related reward are?
(Brand-related reward)
1. When employees display positive brand behaviors, managers may give them verbal encouragement.
2. Our company may give employees 20%
bonus according to the profit of last month.
3. Our company rewards the employees who participate in brand activities when performance of the store is enhanced.
4. Our company rewards the employees who provide information or creativity to enhance brand performance.
Could you tell me what practices of brand-related training are?
(Brand-related training)
1. In the orientation, our company makes newcomers understand brand-related value and spirit through training.
2. Our company transmits brand values toward organizational members through training.
3. Our company enhances employees’
brand-related knowledge and skills through training.
Could you tell me what practices of brand-related selection and evaluation are?
(Brand-related evaluation)
1. Our company recruits employees whose personal values are consistent with brand values.
2. Our company recruits employees whose personal traits are consistent with brand personality.
3. The corporate brand image helps us to recruit proper employees.
4. Our company monthly assesses employees’contribution toward the performance of the brand.
5. Our company assesses employees’brand behaviors with a brand-related standard, such as ranking.
Table 3-1 Key Concepts of Corporate Branding Obtained from In-depth Interviews (Continued)
Questions/concepts Respondents’answers
6. Our company assesses employees’
contribution toward the performance of the brand every year.
Could you tell me how the company communicates information of the corporate brand with internal and external stakeholders?
(Brand communication)
1. Our company often communicates brand value with multiple stakeholders while developing new products or services.
2. Our company often transmits brand values toward organizational members through formal and informal channels, such as formal meetings or personal interactions.
3. Our company often transmits brand values toward external stakeholders through formal and informal channels, such as advertisements or interactions with frontline employees.
4. Our company often communicates brand values with multiple stakeholders via various kinds of channels, such as
advertisements, meetings, public relations, and networks.
5. Our company regularly assesses effects of communications.
Source: this research
Each in-depth interview took from forty minutes to two hours depending on organizational complexity. In the process of in-depth interview, each manager could freely express their opinions which were recorded simultaneously and converted to transcripts. This study checked the content of the transcript, and tried to find ideas which could be utilized in items of questionnaires. Then, this study discussed these
definition of corporate branding. After deleting the ideas that were not matched the definition of corporate branding, this study translated the ideas into items of the questionnaire.
3.1.2 Step 2 Items Elimination and Content Validity
Several stages were performed to understand details of content analysis. First, two thesis supervisors and this author view and discussed all the generated items one by one to make sure that these items matched the definition and corporate branding and clearly enough to understand.
Second, three Ph.D. candidates of department of Business Administration at the university in northern Taiwan were asked to categorize the items according the definitions. The results could (a) match (b) not match (c) not categorize. By the process, the researchers could make sure if the items could distinguish the constructs clearly. The items would be deleted if 2 of the 3 Ph.D. candidates can not match or can not be categorized according to the definition of the dimension. That is, 11, 12, and 13 are deleted. As reported in Table 3-2, this study represents the expertise validity of corporate branding. The inter-rater reliability is 0.94.
Table 3-2 Expertise Validity of Corporate Branding Dimension 1 Vision, Culture, and Climate
1. Our company transmits the vision of the corporate brand toward organizational members through various kinds of channels.
▲
2. Our company transmits belief, value, and norm of the corporate brand toward organizational members through various kinds of channels.
▲
3. Our company creates a climate in order to realize the values of corporate brand.
Dimension 2 Interaction with stakeholders
4. Our company would accept the suggestion of organizational members in order to enhance service quality and brand image.
▲
5. Our company would accept the suggestion provided by customers in order to enhance service quality and brand image.
▲
6. Our company would accept the suggestion provided by other stakeholders (e.g., supplier and government) in order to enhance service quality and brand image.
▲
7. Our company would provide good product and service quality in order to realize brand commitment.
▲
Dimension 3 Brand leadership
8. Our senior managers make brand strategies which are based on values of the corporate brand proposed by our company.
9. Our senior managers make clear brand goals which let employees follow.
10. In order to enhance brand values, our senior managers adjust contents of product and service according to the responses of customers.
▲
11. Our senior managers encourage organizational members to provide suggestions for development and improvement of the corporate brand.
▲ ▲
12. Our senior managers let employees participate in activities of setting up the corporate brand.
▲ ▲
13. Our senior managers transmit values proposed by the corporate brand toward organizational members
▲ ▲ ▲
Table 3-2 Expertise Validity of Corporate Branding (Continued) Dimension 4 Departmental coordination
14. Different departments of our company work together for designing activities of improving brand image.
15. Different departments of our company often discuss how to make employees express brand behaviors.
16. Different departments of our company often exchange information in order to make each department more understand customers’perception of the corporate brand.
17. Different departments of our company work together for implementing values and commitment of the corporate brand.
Dimension 5 Brand rewards
18. When employees display behaviors fostering brand value, our company gives employees informal rewards, such as encouragement.
19. When employees display behaviors fostering brand value, our company gives employees formal rewards, such as compensation.
20. When the market share of the brand enhances, our company rewards employees who participate in brand-related activities.
21. Our company compensates employees for providing brand-related creativity and information.
Dimension 6 Brand training
22. Our company makes newcomers understand brand-related value and spirit through training.
23. Our company makes personal value and behaviors of employees consistent with brand value through training courses.
24. Our company focuses on cultivating brand-related talents.
▲
Table 3-2 Expertise Validity of Corporate Branding (Continued) 25. In the job training, our company transmits the skills of
service to employees, and makes employees produce positive brand behaviors.
Dimension 7 Brand selection
26. Our company considers personal value of applicants to recruit employees with person-brand fit.
27. Our company considers personal traits of applicants to recruit employees with person-brand fit.
28. The brand image may help our company recruit appropriate employees while recruiting newcomers.
▲
Dimension 8 Brand evaluation
29. Our company considers employees’brand-related behaviors in the process of evaluation.
30. Our company makes employees compare their behaviors with a brand-related standard via self-evaluation or colleague-evaluation.
31. Our company regularly assesses employees’
contribution toward the brand value.
Dimension 9 Brand communication
32. Our company often communicates brand-related spirit, content, and value while developing new products or services.
33. Our company often transmits values of the brand toward organizational members through various kinds of informal channels, such as interactions between colleagues.
34. Our company often transmits values of the brand toward organizational members through various kinds of formal channels, such as regular meetings.
▲
35. Our company often transmits values of the brand toward stakeholders through interactions between organizational members and stakeholders (e.g., customers, suppliers, and the government).
▲
Table 3-2 Expertise Validity of Corporate Branding (Continued) Expertise
1
Expertise 2
Expertise 3 36. Our company often transmits values of the brand
toward stakeholders through various kinds of communicative channels, such as advertisements, meetings, public relations, and networks.
▲
37. Our company regularly assesses effects of communications.
▲: Items could not match or could not be categorized according to the definition of the dimension.
3.1.3 Step 3 Data Collection
3.1.3.1 Sampling
The reason that this research collects organization-level data from perceptions of store managers is discussed as follows. In the process of corporate branding, store managers are regarded as key informants because they can clearly understand that practices of corporate branding are implemented completely. Organization-level data collection was made to capture perceptions of store managers from the franchise organization for the use of scale development of corporate branding. Participants in the organizational level are store managers from 35 franchise organizations in Taiwan recruited through Taiwan Chain Store and Franchise Association. This research first visited the senior manager or store manager in person, and phone calls were then made to confirm the willingness to participate in the survey.
3.1.3.2 Data Collection Procedure
This study conducted organization-level data collection in a four-month period (October, 2009 ~ January, 2010). In the first part (October, 2009 ~ November, 2009), data collection was collected to conduct exploratory factor analyses. 150 questionnaires were returned among 160 questionnaires distributed and 135 were valid, which represented a response rate of 80 percent. Regard the respondent characteristics: 46.7 percent are male and 53.3 percent are female; 53.3 percent are in the age of 26-35; 66.4 percent have bachelor degree.
In the second part (December, 2009 ~ January, 2010), data collection was collected to conduct confirmatory factor analyses. In the second-wave data, 155 questionnaires were returned among 170 questionnaires distributed, and 140 were valid, which represented a response rate of 82 percent. Regard the respondent characteristics: 36.4 percent are male and 63.6 percent are female; 50.7 percent are in the age of 26-35; 63.6 percent have bachelor degree. The multilevel data collection procedure is represented in Appendix Table 7.
3.1.4 Step 4 Exploratory Factor Analyses
By conducting a principle component analysis with orthogonal (VARIMAX) rotation using first-wave data, this study examined the dimensionality of corporate
V18, V19, V21, V24, V25, V27, V28, V29, V32, and V37 were deleted (Conway and Huffcutt, 2003). This study further examined the dimensionality of corporate branding with remaining 20 items. The selection criteria was that factor loadings of these items appeared higher than 0.5. KMO value was 0.917 and Barlett Sphericity Test results was significant (p-value<0.001).
As reported in Table 3-3, this study obtained five factors, which included communication and evaluation of corporate branding (CECB), departmental coordination of corporate branding (DCCB), leadership and interaction with stakeholders of corporate branding (LISCB), training and selection of corporate branding (TSCB), and vision and culture of corporate branding (VCCB), explained 74.77 percent of the total variance. In this research, reliability was examined on all the
remaining items from the 5 dimensions assessment. As a test of reliability, Cronbach’s α was adopted to represent internal consistency. The results show that
all values were 0.919, 0.9, 0.83, 0.82 and 0.92, indicating the items are reliably measuring the defined constructs and variables.
Table 3-3 EFA of Corporate Branding (Varimax Rotation) Factor loading
V30 0.800 0.214 0.102 0.327 0.072
V31 0.721 0.039 0.262 0.006 0.382
V33 0.713 0.414 0.114 0.306 0.182
Table 3-3 EFA of Corporate Branding (Varimax Rotation) (Continued)
V34 0.660 0.256 0.299 0.300 0.139
V36 0.637 0.375 0.351 0.064 0.260
V35 0.635 0.487 0.304 0.135 0.242
V15 0.276 0.819 0.139 0.181 0.230
V14 0.200 0.768 0.190 0.306 0.191
V16 0.303 0.747 0.268 0.245 0.120
V10 0.035 0.328 0.718 0.074 -0.147
V7 0.151 0.042 0.696 0.213 0.320
V6 0.275 0.346 0.641 0.374 0.165
V9 0.290 0.071 0.640 0.074 -0.147
V8 0.327 0.082 0.624 0.213 0.320
V22 0.223 0.117 0.373 0.751 0.095
V23 0.256 0.327 0.182 0.664 0.343
V20 0.409 0.405 0.068 0.511 0.156
V26 0.214 0.297 0.190 0.500 0.347
V2 0.207 0.315 0.285 0.161 0.787
V1 0.297 0.300 0.229 0.214 0.775
Variance % 19.41 16.50 15.40 11.65 11.83
Cumulative variance %
19.41 35.90 35.90 62.94 74.77
Cronbach’s alpha
0.919 0.9 0.83 0.82 0.92
Source: this research
3.1.5 Step 5 Definitions and Measures of Dimensions
In this section, this study defines five dimensions of corporate branding obtained by exploratory factor analyses. All items of corporate branding are measured on a 5-point Liker scale, ranging from 1= “extremely disagree”to 5= “extremely agree”. 3.1.5.1 Communication and Evaluation of Corporate Branding (CECB)
This study defines the first dimension, communication and evaluation of corporate branding, as communicated practices which are implemented by an organization to transmit brand values to internal stakeholders (e.g., employee) and external stakeholders (e.g., customers) through formal channels (e.g., meeting) or informal channels (e.g., interactions between employees), and evaluated practices which are utilized by an organization to assess employees’brand-oriented behaviors and contributions. As reported in Table 3-4, items of communication and evaluation of corporate branding include V30, V31, V33, V34, V35, and V36.
Table 3-4 Items of Communication and Evaluation of Corporate Branding
Dimension Items
V30: Our company makes employees compare their behaviors with a brand-related standard via self-evaluation or colleague-evaluation.
V31: Our company regularly assesses employees’contribution toward the brand value.
V33: Our company often transmits values of the brand toward organizational members through various kinds of informal channels, such as interactions between colleagues.
V34: Our company often transmits values of the brand toward organizational members through various kinds of formal channels, such as regular meetings.
V35: Our company often transmits values of the brand toward stakeholders through interactions between organizational members and stakeholders (e.g., customers, suppliers, and the government).
Communication and evaluation of corporate branding (CECB)
V36: Our company often transmits values of the brand toward stakeholders through various kinds of communicative channels, such as advertisements, meetings, public relations,
3.1.5.2 Departmental Coordination of Corporate Branding (DCCB)
This study defines the second dimension, departmental coordination of corporate branding, as practices implemented by an organization to make different departments discuss and interchange information frequently, thus contributing employees’brand behaviors, brand image, and brand equity. As reported in Table 3-5, items of this dimension include V14, V15, and V16.
Table 3-5 Items of Departmental Coordination of Corporate Branding
Dimension Items
V14: Different departments of our company work together for designing activities of improving brand image.
V15: Different departments of our company often discuss how to make employees express brand behaviors.
Departmental coordination of corporate branding
(DCCB) V16: Different departments of our company often exchange information in order to make each department more understand customers’perception of the corporate brand.
Source: this research
3.1.5.3 Leadership and Interaction with Stakeholders of Corporate Branding (LISCB)
The third dimension, leadership and interaction with stakeholders of corporate branding, is defined by this study as the implements that are adopted by senior managers. The implements not only formulate corporate strategy and clear brand objectives which can be followed by organizational members, but also adjust the contents of products and services to enhance corporate brand values according to opinions from interactions with multiple stakeholders, thus enhancing brand
performance (i.e., brand image, brand reputation, and brand equity). As showed in Table 3-6, items of this dimension include V6, V7, V8, V9, and V10.
Table 3-6 Leadership and Interaction with Stakeholders of Corporate Branding
Dimension Items
V6: Our company would accept the suggestion provided by other stakeholders (e.g., supplier and government) in order to enhance service quality and brand image.
V7: Our company would provide good product and service quality in order to realize brand commitment.
V8: Our senior managers make brand strategies which are based on values of the corporate brand proposed by our company.
V9: Our senior managers make clear brand goals which let employees follow.
V10: In order to enhance brand value, our senior managers adjust contents of product and service according to the responses of customers
Source: this research
3.1.5.4 Training and Selection of Corporate Branding (TSCB)
This study defines the fourth dimension, training and selection of corporate branding, as practices of training and selection. Training practices are adopted by an organization to make newcomers understand brand-related value and spirit, and make employees’personal value and behaviors consistent with brand value through training courses. Practices of selection are adopted by an organization to consider personal value of applicants in order to recruit employees with person-brand fit. As represented
This study defines the fourth dimension, training and selection of corporate branding, as practices of training and selection. Training practices are adopted by an organization to make newcomers understand brand-related value and spirit, and make employees’personal value and behaviors consistent with brand value through training courses. Practices of selection are adopted by an organization to consider personal value of applicants in order to recruit employees with person-brand fit. As represented