Channel Governance Through Brand Equity

94 Pages Posted: 21 Mar 2022

See all articles by Mohammad Kayed

Mohammad Kayed

Bishop's University

Manish Kacker

McMaster University - Michael G. DeGroote School of Business

Ruhai Wu

McMaster University - Michael G. DeGroote School of Business

Farhad Sadeh

Eastern Illinois University - Lumpkin College of Business and Technology

Date Written: January 17, 2022

Abstract

The relationship between brand equity and channel governance is recognized in practice and is of particular interest to senior managers. However, research in marketing on this topic is limited and practitioners and scholars seem divided on the nature of this relationship. To guide practice and enrich scholarship on this issue, we investigate the causal impact of brand equity on channel governance. We advance a theoretical framework and estimate a Bayesian Panel Vector Autoregression, on a large panel data set (n=6,292) covering 44 sectors. Our results reveal that brand equity has a direct, powerful, but lagging impact on channel governance such that higher brand equity leads to a less hierarchical channel governance structure. Furthermore, reverse causality analysis suggests that this effect is more powerful, pronounced, and persistent than the reverse effect. We contribute to three literature streams and provide actionable managerial insights, primarily in the areas of channel governance and capital allocation decision-making.

Suggested Citation

Kayed, Mohammad and Kacker, Manish and Wu, Ruhai and Sadeh, Farhad, Channel Governance Through Brand Equity (January 17, 2022). Available at SSRN: https://ssrn.com/abstract=4011346 or http://dx.doi.org/10.2139/ssrn.4011346

Mohammad Kayed (Contact Author)

Bishop's University ( email )

Lennoxville, Quebec J1M1Z7
United States

Manish Kacker

McMaster University - Michael G. DeGroote School of Business ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

Ruhai Wu

McMaster University - Michael G. DeGroote School of Business ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

Farhad Sadeh

Eastern Illinois University - Lumpkin College of Business and Technology ( email )

Charleston, IL 61920-3099
United States

HOME PAGE: http://https://www.eiu.edu/business/personnel.php?id=fsadeh&subcat=270

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
68
Abstract Views
382
Rank
637,045
PlumX Metrics