Understanding brand strategy adoption by high tech SME managers

202 Pages·2014·1.53 MB·English

by  Heidi Neuvonen

JYVÄSKYLÄ STUDIES IN BUSINESS AND ECONOMICS
146
HKeiadrie N Neourvvoanpeanlo
Understanding Brand Strategy
Adoption by High Tech SME
Managers
JYVÄSKYLÄ STUDIES IN BUSINESS AND ECONOMICS 146
Heidi Neuvonen
Understanding Brand Strategy Adoption
by High Tech SME Managers
Esitetään Jyväskylän yliopiston kauppakorkeakoulun suostumuksella
julkisesti tarkastettavaksi yliopiston vanhassa juhlasalissa S212,
huhtikuun 4. päivänä 2014 kello 12.
Academic dissertation to be publicly discussed, by permission of
the Jyväskylä University School of Business and Economics,
in building Seminarium, auditorium S212 on April 4, 2014 at 12 o’clock noon.
UNIVERSITY OF JYVÄSKYLÄ
JYVÄSKYLÄ 2014
Understanding brand strategy adoption
by high tech SME managers
JYVÄSKYLÄ STUDIES IN BUSINESS AND ECONOMICS 146
Heidi Neuvonen
Understanding brand strategy adoption
by high tech SME managers
UNIVERSITY OF JYVÄSKYLÄ
JYVÄSKYLÄ 2014
Editors
Tuomo Takala
Jyväskylä University School of Business and Economics
Pekka Olsbo, Timo Hautala
Publishing Unit, University Library of Jyväskylä
Cover picture by Mika Karhulahti
URN:ISBN:978-951-39-5628-8
ISBN 978-951-39-5628-8 (PDF)
ISBN 978-951-39-5627-1 (nid.)
ISSN 1457-1986
Copyright © 2014, by University of Jyväskylä
Jyväskylä University Printing House, Jyväskylä 2014
ABSTRACT
Neuvonen, Heidi
Understanding brand strategy adoption by high tech SME managers
Jyväskylä: University of Jyväskylä, 2014, 200 p.
(Jyväskylä Studies in Business and Economics
ISSN 1457-1986; 146)
ISBN 978-951-39-5627-1 (nid.)
ISBN 978-951-39-5628-8 (PDF)

Despite the common knowledge that we live in a branded world, not all industries
have found brands (Aaker and Joachimstahler 2000). In the present study I exam-
ined the adoption of a brand strategy in companies that did not possess much mar-
keting knowledge, such as high tech Small and Medium (SME) size enterprises.
The major motivation for my study was the wish to understand if such a phenom-
enon as an adoption process existed and in such case to describe it. Moreover, I
wanted to explore a potential adoption process through which a high tech manager
passes from the first knowledge of a brand strategy to forming an attitude towards
it and reaching a decision to adopt or reject it. Brands are considered strategically
important and one of the most valuable intangible assets that companies have since
they provide protection against competition and drive financial performance (e.g.
Berthon et al. 2008; Keller 2008). However, in high tech marketing literature,
branding has been seen as having only little, if any, importance in the future suc-
cess of high tech companies. In order to identify the challenge of building up strong
brands, the perspective should include the people who build it up. There is a rela-
tive scarcity of research conducted on the perceptions of managers about branding.
The chosen research approach is referred to as “abductive” since I interplayed be-
tween a theoretical frame and findings from the data. The methodology applied in
the empirical study was a qualitative, exploratory research. (Patton 2002). The data
was collected primarily from personal face-to-face in-depth interviews in the USA
and in Finland. The findings propose and richly describe the existence and the con-
cept of a brand strategy adoption process, focusing on SMEs in high tech industry.
Based on the results, a model of the early stages of a brand strategy adoption pro-
cess in high tech SME context is proposed. One critical factor why so many compa-
nies do not build successful brands is that SME high tech managers are at the very
early stage of the adoption continuum. The present study contributes to marketing
theories primarily by narrowing down an infinite set of hypotheses on a puzzling
phenomenon, namely brand strategy adoption in the high tech context, to a feasible
number. Moreover, this study suggest several recommendations for public organi-
sations and provides a perspective for understanding what changes are needed in
order to facilitate the adoption of a brand strategy in high tech SME companies.

Keywords: adoption, abduction, brands, brand strategy, high tech marketing, SME,
content analysis, brand management
Author’s address Heidi Neuvonen
Jyväskylä Un(cid:76)versity School of Business and Economics
Takalankuja 2 E 34, 40740 Jyväskylä
Email: [email protected]

Supervisors Professor Outi Uusitalo
School of Business and Economics
University of Jyväskylä

Postdoctoral Researcher Mari Suoranta
School of Business and Economics
University of Jyväskylä

Reviewers Docent Saila Saraniemi
University of Oulu

Professor and Dean Faheem Ul Islam
University of Management & Technology (UMT)
Lahore, Pakistan

Opponents Docent Saila Saraniemi
University of Oulu
ACKNOWLEDGEMENTS
I feel I have learnt a great deal from writing this thesis. The process of exploring
branding took almost ten years from a decision to continue my studies to com-
pletion. It involved countless cycles of doubt, confusion and uncertainty but
also enlightenment and new experiences.
This dissertation would never have come to fulfillment without the sup-
port of many individuals, and it is with pleasure and gratitude that I
acknowledge their efforts. I would like to express my warmest gratitude to my
supervisor, Outi Uusitalo, for long lasting guidance, supervision and advice in
conducting this research. I would also like to acknowledge co-supervisor Mari
Suoranta for all constructive comments and support. Furthermore, I would like
to thank Ulla Ahlfors for her comments in the early phase of the study.
I thank Docent Saila Saraniemi at University of Oulu and Professor and
Dean Faheem Ul Islam at University of Management & Technology (UMT) in
Lahore, Pakistan for acting as reviewers of this study and for the comments
they have given. Constructive criticism really improved the overall quality of
this thesis. Furthermore, this study would have not been possible without the
support of my foremen at JAMK University of Applied Sciences in Jyväskylä. I
would like to thank Asta Wahlgrén, Director and Matti Hirsilä, Head of
Programme for a positive attitude towards my study leaves and encouragement
for completion.
I would like to thank my colleagues for their support, feedback and
friendship. Especially I would like to thank Anne, Murat, Hannu, Jorma, Jussi,
Juha, Ritva, Sami, Minna and Risto for their feedback on various aspects of this
project. I would also like to thank my ex-colleagues Risto, Jukka, and many oth-
ers for being my mentors and opponents on implementing a successful brand
strategy in real-life. Moreover, I would like to thank Mrs. Sharon Ballard and all
high tech SME managers who spent time to participate in this study without
immediate benefit to themselves.
The research for this thesis was financially supported by Liiketalouden
Rahoitus, JAMK University of Applied Sciences. Furthermore, Jyväskylä Ylio-
pisto, Growth Venture Lab offered me a 6 month lecturer position. I am grateful
for the comments received at the marketing tutorials in Jyväskylä (2009) and
Tampere (2010) and at the IMDA conference in Taiwan (2013).
Last but not the least I would like to acknowledge the endless support, en-
couragement, patience and understanding of my family, friends and partner-in-
life. I am sorry for all inconvenience caused and I will do my utmost to be more
present in your lives from now on.

Jyväskylä 15.2.2014
Heidi Neuvonen
FIGURES
FIGURE 1 A Model of Five Stages in the Innovation-Decision Process ... 17
FIGURE 2 Position of the study within the marketing domain and the
origins of the relevant theories, models and concepts ............... 20
FIGURE 3 The sources affecting the adoption of a brand strategy by
high tech SME managers ................................................................ 27
FIGURE 4 The share of high tech exports in 2007 and in 2011 in some
EU countries .................................................................................... 30
FIGURE 5 Combination of theories to understand the impact of social
system on adoption of a brand strategy ....................................... 76
FIGURE 6 Characterizing high tech marketing environments ................... 87
FIGURE 7 Steps of a brand management process ......................................... 90
FIGURE 8 The high tech brand building process by Larry Light ............... 92
FIGURE 9 The theoretical framework for a brand strategy adoption by
high tech SME managers .............................................................. 100
FIGURE 10 The abductive research process adapted from Kovács and
Spens 2005, 139 .............................................................................. 106
FIGURE 11 High tech SME manager’s perception of the elements of
focus ................................................................................................ 122
FIGURE 12 The scale of commitment to a brand strategy ........................... 131
FIGURE 13 Multi-dimensional complexity of a brand strategy .................. 150
FIGURE 14 A model of a brand strategy adoption by high tech SME
managers ......................................................................................... 175

TABLES
TABLE 1 The Global Competitiveness Report 2012-2013 .......................... 31
TABLE 2 Evolution of the branding literature and discussion from
viewpoint of the present study ...................................................... 35
TABLE 3 The main categories of brands ....................................................... 38
TABLE 4 Definitions of brands ...................................................................... 38
TABLE 5 Definitions of brand-related concepts .......................................... 40
TABLE 6 Relative importance of brands and other assets ......................... 49
TABLE 7 Key issues of a brand strategy’s impact on adoption process
in high tech SME companies .......................................................... 50
TABLE 8 Potential risks for high tech marketing ........................................ 58
TABLE 9 Brand management dimension, process and theme .................. 64
TABLE 10 Key issues of the impact of the perceived characteristics on
the adoption process ....................................................................... 71
TABLE 11 The effect of an organization and a manager on adoption ....... 97
TABLE 12 Conception of a brand strategy ................................................... 102
TABLE 13 Description of the selected companies ....................................... 111
TABLE 14 Description of the interviewees ................................................... 114
TABLE 15 Previous practice – A summary of factors that are involved
when a high tech SME manager is exposed to a brand
strategy’s existence ........................................................................ 122
TABLE 16 Felt needs/problems – A summary of factors that are involved
when a high tech SME manager is exposed to a brand
strategy’s existence ........................................................................ 127
TABLE 17 Innovativeness – A summary of the level of brand strategy
innovativeness perceived by high tech SME managers ........... 138
TABLE 18 A summary of the factors concerning the social system when
adopting a brand strategy by high tech SME managers .......... 144