The Impact of Innovativeness on Brand Competitiveness Through the Mediating Role of Brand Differentiation (Case Study: National Pharmaceutical Industry)
Keywords:
Brand competitiveness, innovation orientation, ,brand differentiation, pharmaceutical industryAbstract
This study aimed to examine the effect of innovation orientation on brand competitiveness with the mediating role of brand differentiation in the pharmaceutical industry. The present research was applied in purpose and employed a descriptive–survey design using a mixed-methods approach. In the qualitative phase, in-depth individual interviews were conducted with eight experts from the pharmaceutical industry and analyzed through grounded theory using ATLAS.ti software to extract the research constructs. In the quantitative phase, a localized researcher-developed questionnaire was distributed among managers and experts of pharmaceutical companies nationwide, of which 379 valid responses were collected. The instrument’s validity was confirmed through face and construct validity, and reliability was verified using Cronbach’s alpha. Data were analyzed using SPSS and LISREL software. Pearson correlation coefficients were employed for preliminary analysis, and structural equation modeling was applied to test the hypothesized relationships and evaluate the conceptual model. Structural equation modeling revealed that innovation orientation had a positive and significant effect on brand differentiation (β = 0.31, t = 5.53, p < 0.001) and brand competitiveness (β = 0.19, t = 3.32, p < 0.001). Brand differentiation also exerted a strong positive effect on brand competitiveness (β = 0.41, t = 6.29, p < 0.001). The indirect effect of innovation orientation on brand competitiveness through brand differentiation was significant, resulting in a total effect of β = 0.31 (t = 5.16, p < 0.001). The model demonstrated excellent fit indices, confirming the robustness of the proposed relationships. The findings confirm that innovation orientation enhances brand competitiveness both directly and indirectly through the mediating mechanism of brand differentiation, underscoring the strategic importance of integrating innovation and branding initiatives within pharmaceutical firms.
Downloads
References
1. Bhawsar P, Chattopadhyay U. Competitiveness: Review, reflections and directions. Global Business Review. 2015;16(4):665-79. doi: 10.1177/0972150915581115.
2. Vlados C, Chatzinikolaou D. Challenges of industrial policy to enhance competitiveness. Journal of Economics Library. 2019;6(2):83-96.
3. Prajogo DI. The strategic fit between innovation strategies and business environment in delivering business performance. International journal of production Economics. 2016;171:241-9. doi: 10.1016/j.ijpe.2015.07.037.
4. Ayinaddis SG. The effect of innovation orientation on firm performance: evidence from micro and small manufacturing firms in selected towns of Awi Zone, Ethiopia. Journal of Innovation and Entrepreneurship. 2023;12(1):26. doi: 10.1186/s13731-023-00290-3.
5. Hazem SM, Zehou S, editors. Organizational culture and innovation: A literature review. 3rd International Conference on Education, Culture and Social Development (ICECSD); 2019.
6. Cvitanović PL. New technologies in marketing as competitive advantage. ENTRENOVA-ENTerprise REsearch InNOVAtion. 2018;4(1):266-74.
7. Gupta S, Gallear D, Rudd J, Foroudi P. The impact of brand value on brand competitiveness. Journal of Business Research. 2020;112:210-22. doi: 10.1016/j.jbusres.2020.02.033.
8. Horsfall H. Brand equity and brand performance of retail pharmaceutical firms in Rivers State of Nigeria. International Journal of Entrepreneurship and Business Innovation. 2020;3(1):100-12.
9. Katsanis LP. Global issues in pharmaceutical marketing: Routledge; 2015.
10. Sanghavi RC, Sharma P. Analyzing differentiation strategies in the pharmaceutical industry. International Journal of Advanced Research in Science, Communication and Technology. 2023;3(2):644-54.
11. Munasinghe A, Dissanayake D. Brand Differentiation in Industrial Sector Context: Empirical Review and Case Evidences in Sri Lanka. International Journal of Scientific & Engineering Research. 2017;8(6):1610-23.
12. Ishola K. The effect of brand differentiations on firms' competitive advantage. International Journal of Business and Management Invention (IJBMI). 2022;11(1):30-42.
13. Boisvert J, Ashill NJ. How brand innovativeness and quality impact attitude toward new service line extensions: the moderating role of consumer involvement. Journal of Services Marketing. 2011;25(7):517-27. doi: 10.1108/08876041111173642.
14. Roshanazadeh Z, Kordnaeij A, Mansourimoayyed. The Impact of Brand Innovation on Brand Resonance with the Mediating Role of Brand Experience (Case Study: Pasargad Bank Customers in Tehran). Modern Marketing Research. 2025;15(1):1-24.
15. Gupta S, Malhotra NK, Czinkota M, Foroudi P. Marketing innovation: A consequence of competitiveness. Journal of Business Research. 2016;69(12):5671-81. doi: 10.1016/j.jbusres.2016.02.042.
16. Feiz D, Motamani A, Kordnaij A, Zare'i A, Dehghani Soltani M. The effect of marketing innovation on brand competitiveness by explaining the role of technology opportunity. Quarterly Journal of Business Management Outlook. 2017;31:13-29.
17. Santos-Vijande ML, del Río-Lanza AB, Suárez-Álvarez L, Díaz-Martín AM. The brand management system and service firm competitiveness. Journal of Business Research. 2013;66(2):148-57. doi: 10.1016/j.jbusres.2012.07.007.
18. Juaton EJ, Enaga A, Lazaro JMB, Carmona HB. Social Media Influence, Brand Reputation, and Electronic Word-of-Mouth Marketing: A Structural Equation Model on Consumer Purchase Decision Making on Apparel Businesses. International Journal of Research and Innovation in Social Science. 2025;9(5):1519-37. doi: 10.47772/IJRISS.2025.905000121.
19. Perera H, Cader KA, Azam M. Impact of product innovation on consumer brand loyalty: A study based on the Sri Lankan tea industry. 2024.
20. Dehghani Soltani M. Designing and explaining a strategic model for brand competitiveness to enter international markets: subject of study: Food industry in Iran: Semnan University; 2017.
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Mohabat Ghaderizadeh (Author); Mohammad Ali Abdolvand; Kambiz Heidarzadeh, Mohsen Khounsiavash (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
