Value co-creation of small and medium sized businesses through brand alliances.

Abstract

The purpose of this study is to explore and critically analyse the value co-creation process of small and medium businesses in the context of brand alliances. The study builds on brand alliance literature, resource-based view and Service-Dominant logic to explore the utilisation of marketing resources and capabilities by small and medium-sized businessfor value co-creation in the context of brand alliances. The topic is explored by analysing five case studies from Turkey. A multiple case-design, qualitative analysis and thematic analysis are used to collect and analyse the data of the study. Findings of the study would help marketing managers of small and medium businesses to optimise the level of resource allocation in a brand alliance for better value outcomes, to prevent the risks that might occur during the brand alliances, and to make better partner brand choices in their future brand alliances. One of the key findings of the study is that the value co-creation process during the brand alliances not only involves the customers but also creates values for the customers which in turn contribute to the values and resources of the partner brands. The resources that have a critical influence on the value outcomes of a brand alliance are identified as marketing resources and capabilities, human resources, technological resources, and brand alliance experience. The direct value outcomes which are co-created by partner brands are financial value, customer acquisition, customer satisfaction and brand awareness. Also, brands in a brand alliance co-creates indirect value outcomes of innovation and knowledge. Although improved brand image and increased customer loyalty are among the popular aims and expectations of marketing managers of case study brands, the achievement of these indirect value outcomes are limited according to the findings of the study.