The impact of brand equity on employee attitudes

Abstract

Using data from a large, cross-industry sample, this paper examines the impact of brand equity (BE) on employee attitudes. Stronger brands have both positive and negative effects on employee attitudes, contingent on organizational hierarchy. Specifically, the impact of stronger brands on employee attitudes is positive for lower-level employees, negative for mid-level executives, and not significant for top managers. This paper further details the extent to which alignment between top and mid-level executives ' attitudes affects lower-ranking employees' attitudes. Because firms’ management of the impact of BE on employee attitudes has important implications, this article recommends an approach that enables firms to regulate work relationships by investing in strong brands. Given that such investments are less beneficial in certain circumstances, this study provides useful guidelines for enhancing their effects.