The Effects of Public Relations, Brand Image, and Identity on Small and Medium-Sized Enterprises

Abstract

Branding has recently become a powerful competitive tool for SMEs. While there is a growing body of research on branding efforts by SMEs to enhance brand equity, limited attention has been given to the role of public relations (PR) in achieving brand equity for SMEs, particularly from the perspective of a developing country like Ghana. Hence, using signaling theory, this chapter aimed to investigate the effect of PR on SME brand image, identity, and reputation, and how these factors influence SME brand equity with a specific focus on Ghana. Data from 625 respondents was analyzed using PLS-3. The results show that PR significantly impacts an SME's brand image, identity, and reputation. The findings also reveal that SME image and identity significantly influence SME brand equity. Additionally, the results show that the reputation of the SME significantly mediates the relationship between SME brand image, identity, and SME brand equity