The Effect of Top Management Teams on Branding Capability: The Moderating Role of Formalization

Abstract

In this study, the authors examine how top management team commitment, communication, and risk aversion influence branding capability- an ability to integrate and deploy resources to build a strong brand position. The role of formalization is also investigated to understand whether it facilitates or impedes the effort of top management teams on branding capability. Empirical results strongly support a positive effect of top management team commitment and communication towards branding capability. Furthermore, formalization positively and negatively moderates the effect of top management team communication and commitment, respectively on branding capability. Implications for branding strategy are discussed.