The Impact of Brand-Oriented Strategies on Financial Performance (Case Study: Small and Medium-Sized Enterprises in Mashhad)

Abstract

Objective: This study aims to examine the impact of brand-oriented strategies on the financial performance of small and medium-sized enterprises (SMEs) in Khorasan Razavi Province.Methodology: This research adopts a descriptive-analytical approach, with the statistical population consisting of SME managers in the city of Mashhad. Data were collected using a structured questionnaire and analyzed through structural equation modeling (SEM). Instrument validity and reliability were confirmed using Cronbach’s alpha, composite reliability (CR), and both convergent and discriminant validity assessments.Findings: Path analysis results demonstrated that brand orientation has a significant positive effect on both internal branding and brand communication. Furthermore, brand communication significantly influences internal branding and brand awareness. Internal branding and brand awareness positively affect brand credibility, which in turn has a strong and significant effect on financial performance. The overall model exhibited a strong goodness-of-fit (GOF = 0.498), indicating a robust structural relationship among variables.Conclusion: The findings indicate that brand-oriented strategies, particularly through their influence on core components such as brand orientation, brand communication, internal branding, and brand credibility, significantly enhance financial performance in SMEs. Thus, investing in branding as an intangible asset can be instrumental in fostering growth and profitability among small and medium enterprises.