Corporate industrial brand equity and firm creditworthiness: The role of climate change commercial risks and opportunities recognition

Whilst a multitude of studies explored the financial implications of corporate brand equity in a B2C context, little is known as to the financial impact of B2B brand equity. Furthermore, no study, to our knowledge, has examined how climate change-related corporate practices affect the nexus between...

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Main Authors: Rahman, M., Shimul, Anwar Sadat, Cheah, Isaac
Format: Journal Article
Published: 2023
Online Access:http://hdl.handle.net/20.500.11937/96364
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author Rahman, M.
Shimul, Anwar Sadat
Cheah, Isaac
author_facet Rahman, M.
Shimul, Anwar Sadat
Cheah, Isaac
author_sort Rahman, M.
building Curtin Institutional Repository
collection Online Access
description Whilst a multitude of studies explored the financial implications of corporate brand equity in a B2C context, little is known as to the financial impact of B2B brand equity. Furthermore, no study, to our knowledge, has examined how climate change-related corporate practices affect the nexus between B2B brand equity and financial aspects (i.e., creditworthiness) of B2B firms. Drawing propositions from the resource dependence theory (RDT) and the natural resource-based view of the firm (NRBV), this study develops a parsimonious conceptual model to investigate the relationship between B2B brand equity and a firm's long-term creditworthiness. Given B2B firms' increasing engagement in pro-environmental initiatives, the model also incorporates a firm's ability to recognize climate change-related commercial risks and opportunities as a moderator. Drawing samples from USA-based B2B firms, the conceptual model is tested through robust econometric modelling techniques. The results demonstrate that higher B2B brand equity leads to higher long-term creditworthiness of a firm. Further, the positive association between B2B brand equity and creditworthiness is accentuated by climate change commercial risks and opportunities recognition (CCCROR). That is, a firm's capacity to identify challenges and opportunities emanating from the inexorable global climate change further bolsters the positive link between industrial brand equity and long-term creditworthiness. These findings are robust to a battery of sensitivity analyses, including multi-level mixed effect and endogeneity-robust modelling techniques.
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spelling curtin-20.500.11937-963642025-01-09T05:23:33Z Corporate industrial brand equity and firm creditworthiness: The role of climate change commercial risks and opportunities recognition Rahman, M. Shimul, Anwar Sadat Cheah, Isaac Whilst a multitude of studies explored the financial implications of corporate brand equity in a B2C context, little is known as to the financial impact of B2B brand equity. Furthermore, no study, to our knowledge, has examined how climate change-related corporate practices affect the nexus between B2B brand equity and financial aspects (i.e., creditworthiness) of B2B firms. Drawing propositions from the resource dependence theory (RDT) and the natural resource-based view of the firm (NRBV), this study develops a parsimonious conceptual model to investigate the relationship between B2B brand equity and a firm's long-term creditworthiness. Given B2B firms' increasing engagement in pro-environmental initiatives, the model also incorporates a firm's ability to recognize climate change-related commercial risks and opportunities as a moderator. Drawing samples from USA-based B2B firms, the conceptual model is tested through robust econometric modelling techniques. The results demonstrate that higher B2B brand equity leads to higher long-term creditworthiness of a firm. Further, the positive association between B2B brand equity and creditworthiness is accentuated by climate change commercial risks and opportunities recognition (CCCROR). That is, a firm's capacity to identify challenges and opportunities emanating from the inexorable global climate change further bolsters the positive link between industrial brand equity and long-term creditworthiness. These findings are robust to a battery of sensitivity analyses, including multi-level mixed effect and endogeneity-robust modelling techniques. 2023 Journal Article http://hdl.handle.net/20.500.11937/96364 10.1016/j.indmarman.2023.10.010 restricted
spellingShingle Rahman, M.
Shimul, Anwar Sadat
Cheah, Isaac
Corporate industrial brand equity and firm creditworthiness: The role of climate change commercial risks and opportunities recognition
title Corporate industrial brand equity and firm creditworthiness: The role of climate change commercial risks and opportunities recognition
title_full Corporate industrial brand equity and firm creditworthiness: The role of climate change commercial risks and opportunities recognition
title_fullStr Corporate industrial brand equity and firm creditworthiness: The role of climate change commercial risks and opportunities recognition
title_full_unstemmed Corporate industrial brand equity and firm creditworthiness: The role of climate change commercial risks and opportunities recognition
title_short Corporate industrial brand equity and firm creditworthiness: The role of climate change commercial risks and opportunities recognition
title_sort corporate industrial brand equity and firm creditworthiness: the role of climate change commercial risks and opportunities recognition
url http://hdl.handle.net/20.500.11937/96364