Brand-specific transactional leadership: the effects of brand-building behaviors on employee-based brand equity in the insurance industry

Abstract

PurposeThe concept of employee-based brand equity (EBBE) has been the center of scholars' attention in the field of marketing and brand management. The brand is one of the most valuable intangible assets of any organization. This research is a novel step in examining the brand-specific transactional leadership role in implementing the new approach of brand-building behaviors (BBBs) and EBBE.Design/methodology/approachThe statistical population of the current study is employees of five major insurance companies in Semnan city of Iran. Using the classified random sampling method, 136 employees of these insurance firms were chosen. Likert-based questionnaires were used to collect data. Structural equation modeling (SEM) was used to analyze research data.FindingsFindings show that brand-specific transactional leadership affects participation and retention positively and significantly. Also, the variables of participation, in-role brand-building behavior (IRBBB) and retention, have a positive and significant effect on the EBBE. However, no significant relationship has been found between brand-specific transactional leadership and the IRBBB.Research limitations/implicationsThe study was bound by access to firms and managers' availability. On the other hand, this research is a cross-sectional study, and its data have been collected in a certain period of time, while longitudinal research can provide a richer result. Future research can benefit from the impact of brand-specific transactional leadership and brand evangelism.Practical implicationsWhen selecting brand leaders, manager training programs need to evaluate whether a candidate has brand-specific transactional leadership traits that will enhance the successful internalization of brand values and improve EBBE.Originality/valueBrand-specific transactional leadership increases employee responsibility and a greater desire to engage in citizenship behaviors. In addition, using partnerships to influence customer supportive behaviors creates a good image of the company and its services in the minds of customers. Also, this research is a novel step in examining the brand-specific transactional leadership role in implementing the new approach of BBBs and EBBE.