The spillover effect of companies' brands in B2B relationships : the role of governance form choice

Abstract

In marketing literature there is a large gap in understanding the importance of brands and brand management in interorganizational relationships. This thesis aims to extend the existing B2B branding literature by analyzing the spillover effect of companies’ brands in interorganizational relationships. The current paper suggests that relational governance form should be positively related to brand spillover effect on both focal and partner companies. Additionally, this thesis is testing whether the relationship between reputation, resources and contracting capabilities with brand spillover effect is strengthened (weakened) while moderated by governance forms. These ideas are examined using a sample of 86 Ukrainian B2B managers. By means of hierarchical regression analyses it is found that (1) there is a significant positive relationship between relational governance form and the extent of spillover effect of brands in B2B relationship for partner firm; (2) the relationship between contracting capabilities and brand spill-over effect for partner firm is weakened while moderated by formal governance; (3) the direct relationship between reputation of a partner firm with brand spillover effect for a focal company is positive; and (4) positive relationship between reputation of a focal firm with brand spill-over effect for a partner company is strengthened while moderated by the relational governance form. Based on the results theoretical and managerial implications are provided.