Introduction and Theoretical Background

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1 1 Introduction and Theoretical Background The traditional approach to building an organisation s brand is predicated upon the widely accepted notion of customer-centric Marketing popularised by Levitt (1960). In this outside-in approach to branding, marketing plays the central roles of identifying customer preferences, and accordingly positioning and communicating an organisation s brand identity to customers (Ind & Bjerke, 2007). Other organisational functions need to be optimally organised to reinforce the brand identity communicated to the customers. However, such integration is seldom achieved in reality, chiefly owing to communication dissonance and departmentalised thinking within organisations (ibid). In contrast, the inside-out approach to brand-building begins by focusing on inculcating the organisation s brand identity among its employees (Ind, 2003, 2007; McDonald, de Chernatony, & Harris, 2001). Hence, when the same brand identity is communicated to customers, the employees reinforce it through their brandoriented attitudes & behaviour (Ind, 2007; Mitchell, 2002). In such a scenario, employees live the organisation s brand; thus creating & delivering superior customer-value (Ind, 2007; Ind & Bjerke, 2007). The proponents of the inside-out approach (Berry, 2000; Henkel, Tomczak, Heitmann, & Herrmann, 2007; Ind, 2003; Mitchell, 2002) argue that a participatory & integrated approach to internal brand-building encourages employees to internalise the organisation s brand identity and live the brand. This acknowledgement of the pivotal role of employees in creating and sustaining an organisation s brand identity has led to a growing interest in Internal Branding (IB), of which the aim is to achieve brand-oriented employee behaviour & attitudes that reinforce the brand identity (Harris & de Chernatony, 2001; Ind & Bjerke, 2007; Mosely, 2007; Punjaisri, Wilson, & Evanschitzky, 2009). The proposed study s purpose is essentially to empirically investigate the evidence for this argument in the publicsector context, and ascertain the interrelationships between IB, brand identity and brandoriented employee attitudes and behaviour. Public sector organisations (PSOs) in the UK have faced rising commercialisation of their operating environment due to broad political and economic reasons, whilst their stakeholders expectations of them have grown (Connolly & Wall, 2012; Davies, 2011; Luoma-aho, 2007). As a result, PSOs are increasingly turning to strategic marketing concepts, which include branding, to strengthen their positions and better address stakeholder needs (Conway & Whitelock, 2004; Hariff & Rowley, 2011; Whelan, Davies, Walsh, & Bourke, 2010). However, there is need for education and clarification regarding marketing concepts, tools & techniques in the non-profit sector, which includes PSOs (Conway & Whitelock, 2004; Dolnicar & Lazarevski, 2009). It is therefore relevant and imperative to consider different approaches to branding in the context of PSOs. Dowling (1986, 1993) argued that an organisation s vision and formal policies transmitted through internal communications influence its identity in the minds of its employees. However, Internal Branding is not limited to internal marketing communications; and an overly marketing-laden approach may in fact be counter-productive (Cushen, 2009). Several studies have also emphasised a cross-functionally integrated approach to Internal Branding, in which HRM and Marketing are both seen as having active roles (Berry, 2000; Boselie & van der Wiele, 2002; Davis, 2001; de Chernatony & Cottam, 2006; Gotsi & Wilson, 2001; Kimpakorn & Tocquer, 2007; Punjaisri, et al., 2009). In addition, management approach (Gotsi & Wilson, 2001; Henkel, et al., 2007), and leadership styles (M'Zungu, Merrilees, & Miller, 2010; Morhart, Herzog, & Tomczak, 2009) are also seen as essential for successful IB that leads to brand-oriented employee attitudes and behaviour. Holistic models of internal brand management that examine IB and its consequences, which include various aspects of brand-oriented employee attitudes and behaviour have been empirically validated in prior

2 2 studies (Burmann & Zeplin, 2005; Burmann, Zeplin, & Riley, 2009; King & Grace, 2010; Punjaisri, et al., 2009). Nevertheless, no studies have yet considered line management input as part of IB, or IB s influence on an organisation s brand identity. The current study seeks to address these two areas of deficit in the extant literature. Research Aims 1. Investigate if IB, which comprises internal marketing & communications, HR input and line management input, has a positive effect on brand-oriented employee attitudes and behaviour. 2. Investigate if the above effect is mediated by the organisation s brand identity. Methodology This study is based on the functionalist paradigm, which comprises an objectivist and regulatory disposition that presupposes organisational behaviour to yield itself to rational study and order (Burrell & Morgan, 1979). These presuppositions are consistent with the current study s aims. Accordingly, the study takes the epistemological stance of a positivist and the ontological stance of a realist; hence it assumes the view that social reality exists beyond the perceptions of individuals and can be measured & studied objectively. Positivist research typically entails a quantitatively-led methodology (Saunders, Lewis, & Thornhill, 2007), as does the proposed study using questionnaire-based survey as the main data collection method. The survey was administered to a randomly chosen sample of employees in a large local authority in UK. Respondents were asked to rate their level of agreement/disagreement with statements provided on a 7-point Likert scale. The employees and other stakeholders commonly referred to the organisation by using a three-letter acronym. This acronym was used in the questionnaire to refer to the organisation s brand, mirroring the approach taken by previous researchers (G. Davies, Chun, Da Silva, & Roper, 2004; Roper & Davies, 2010). In order to avoid common method bias, questions were randomised and participants anonymity and confidentiality were guaranteed (Chang, van Witteloostuijn, & Eden, 2010; Podsakoff, MacKenzie, Jeong-Yeon, & Podsakoff, 2003). The scales for measuring IB were adapted from previous studies (Aurand, Gorchels, & Bishop, 2005; Ewing & Caruana, 1999; Henkel, et al., 2007; Punjaisri & Wilson, 2007). Measures for brand identity were developed using the projective approach of humanising the brand (Aaker, 1997; G. Davies, 2008; G. Davies, et al., 2004). The scales for brand-oriented employee attitudes and behaviour were also adapted from previous studies (Aurand, et al., 2005; Baumgarth & Schmidt, 2010; King & Grace, 2010; Morhart, et al., 2009). The questionnaire was pre-tested using two focus group discussions involving employees from different divisions of the organisation. Special care was taken to eliminate any ambiguous, vague or unfamiliar terms in the questionnaire. Following the pre-test, a pilot survey was conducted using a randomly selected sample from the employee population of the organisation. Based on the results from the pilot study, minor changes were made to questionnaire ahead of the main survey, which is currently underway.

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BRAND-CENTERED RECRUITMENT: A NEW DISCOURSE IN THE DELIVERY OF EMPLOYEE BRAND PROMISE Asad Ur Rehman, Salniza Bt Md. Salleh and Norzieiriani bt.

BRAND-CENTERED RECRUITMENT: A NEW DISCOURSE IN THE DELIVERY OF EMPLOYEE BRAND PROMISE Asad Ur Rehman, Salniza Bt Md. Salleh and Norzieiriani bt. Ahmad 1 Lecturer Commerce Department, Bahauddin Zakariya