The Impact of Nonprofit Brand Orientation on Organisational Performance

Abstract

Brands have becoming increasingly important to many nonprofit organisations. Consequently, brand orientation has emerged as an attractive business philosophy in this sector. In this study, the relationship between nonprofit brand orientation (NBO) and organisational performance is examined. Findings suggest that there is a positive association between the dimensions of NBO and nonprofit organisational performance. Further, successful nonprofit organisations tend to be more brand-oriented than their less successful counterparts. Limitations of the study are noted and suggestions for ongoing research offered.

What Does Marketing Mean to Japanese NPO Managers?

“…Sargeant (2009) states that marketing helps nonprofit managers better understand the needs of their target audience and the management issues that they face. A number of scholars note the positive relationship between higher marketing orientation and organizational performance in nonprofit contexts (Chan & Chau, 1998;Levine & Xahradnik, 2012;Macedo & Pinho, 2006;Mahmoud & Yusif, 2012;Modi, 2012;Napoli, 2006;Shoham et al, 2006;Wood et al, 2000). A marketing oriented organization is "more likely to have dedicated marketing staff, to provide funding for marketing activities, to engage in regular communication with target audiences, to engage in public relations, and so forth" (Wymer, Boenigk, & Möhlmann, 2015, p. 129).…”

“…How they view marketing is important because it may affect their organizations' marketing orientation-the implementation of marketing concepts in organizations' marketing activities (Modi & Mishra, 2010). Marketing orientation is correlated to an organization's performance such as financial viability and/or service quality (Chan & Chau, 1998;Duque-Zuluaga & Shneider, 2008;Ledwith & O'Dwyer, 2009;Napoli, 2006;Ngo & O'Cass, 2012;Shoham et al, 2006;Wood et al, 2000). As Qureshi (1993) notes, for example, marketing orientation is closely and positively related to attracting institutional resources.…”

When is brand orientation a useful strategic posture?

“…Thus, brand orientation emphasizes the strategic significance of branding activities, and is therefore seen as a resource that may shape a firm's strategic direction . As an inside-out strategic posture, brand orientation enables a firm to develop and sustain a shared value with core stakeholders (i.e., customers and employees) to generate superior performance (Napoli, 2006;Reijonen, Laukkanen, Komppula, & Tuominen, 2012). Given that brand orientation encapsulates a firm's long-term strategic goal, it helps define and cement relationships within the firm (Napoli, 2006;Urde, 1994;Urde et al, 2013).…”

“…In reaction to this potential financial benefit of brand orientation, studies have focused on discovering and explaining how firms can develop their brand orientation levels (e.g., Baumgarth, 2010;Ewing & Napoli, 2005;Hankinson, 2001;Napoli, 2006;Mulyanegara, 2011;Schmidt & Baumgarth, 2014;Simoes & Dibb, 2001;Urde, 1994;Wong & Merrilees, 2005). Empirical studies examining how brand orientation impacts performance have primarily been descriptive (e.g., Baumgarth, 2009;Keller, Dato-on, & Shaw, 2010) and directed at understanding linear associations (e.g., Gromark & Melin, 2011).…”

“…Similarly, Gromark and Melin (2011) suggest that favorable brand orientation can lead to superior performance, conceptualized as the attainment of superior brand equity. Napoli (2006) concluded that because of the apparent positive association between brand orientation and market related performance, firms that direct their managerial practices towards the development, acquisition, and leveraging of branded products and services are likely to experience superior performance outcomes. Napoli's argument is based on the notion that brand orientation is a resource that provides firms with the capability to differentiate their market offerings from those of their competitors.…”