EFFECTS OF INTERNAL BRANDING PRACTICES ON BRAND PERFORMANCE A CASE OF SMALL & MEDIUM ENTERPRISES IN NAIROBI KENYA

Abstract

This study aimed at determining the effect of internal branding practices on brand performance in Kenya. The higher the internal brand practices, the stronger the effect on brand performance measures. The objective of the study was to establish the effects of internal branding practices; internal communication, training support, brand leadership, recruitment, reward and recognition and their effect on brand performance of small medium enterprises in Kenya. The study reviewed literature of past similar studies to inform the study design as well as selection of measures for variables under investigation. A descriptive research design was used in this study. The target population for the study was the top 100 SME’s listed in the KPMG and Daily nation ‘Top 100 midsized companies’ survey 2016. A sample of 81 was picked using a stratified random sampling strategy while self-administered structured questionnaire was used for data collection. The Cronbach’s alpha coefficient was used to evaluate the reliability of the data collection instruments. Descriptive statistics and regression analysis was used to analyse the data using Statistical Package for Social Scientists (SPSS) software. A full regression model was conducted to obtain R squared which showed the model fitness and it was revealed that there exists direct positive relationship between brand performance and internal communication (β1=0.175, p=0.006), training support (β2=0.482, p<0.0001), recruitment, reward & recognition (β4=0.152, p<0.0001). However, the study also found out that brand leadership is not significant in determining brand performance (β3 = -0.059, p =0.281). The study recommend that SME’s in Kenya should consider training support to enhance internal branding practices thus increase brand performance. The SME’s also should ensure that the internal communication between senior management and employees is effective and efficient to enhance internal branding. A solid recruitment, reward and recognition strategy that ensures employees positively relate to the company’s brand should be considered. Since the study found that there’s no significant relationship between brand leadership and brand performance, further studies on this variable can be conducted to establish the importance. Further research can be conducted using the SME’s that are located outside Nairobi and also outside Kenya.