Brand, Identity and Reputation: Exploring, Creating New Realities ...

Determinants of brand governance A brand orientation is espoused by M'zungu et al. (2010) as a precursor of brand
governance to protect brand equity. This resonates with Fournier, Sele, & Schögel (2005) who note those organisations
with a strong brand orientation having an interest in gaining influence over brand communities. In addition research by
Hankinson (2002) demonstrates how managerial style and approach are determined by the degree of brand orientation.
A second determinant of the governance approach adopted by the organisation may be the presence of shared values
between the brand owner and the community. Voss & Voss (1997) present the existence of mutual shared values as a
determinant of relationship commitment. Such a commitment may subsequently impact how governance is enacted by
the brand owner.
Brand governance approaches In developing a typology of inter-firm relationship governance strategies Heide (1994)
elucidates how governance theory has developed along two divergent paths. These are the unilateral and bilateral
governance forms, each representing a different approach to managing the relationship. The unilateral approach is
characterised by a hierarchical and formal exercise of authoritarian control. In contrast the bilateral approach represents
a socialised form of control predicated on relational norms. Relational norms refer to a consensus of what constitutes
acceptable behaviour in the relationship and evoke rule-like status (Gilliland, Bello, & Gundlach, 2010). These
governance forms are however second-order constructs which are manifest through governance processes which
maintain the relationship (Heide, 1994).
Governance processes Gilliland et al. (2010) note that governance processes impact upon exchange partner behaviours
and the outcomes of the relationship. Fournier et al. (2005) add that within a community context, the relationship
between the brand and the community will be continually shaped by the actions of the brand.
Relationship partners have been found to be subject to dual control processes (Gilliland et al., 2010). That is, when
attempting to manage the brand through exerting unilateral authority over their exchange partner, the corollary is that
the firm will be subject to bilateral controls emanating from the social bond of the relationship. In the community
context, the brand owner will therefore be subject to bilateral controls from the community. As Aggarwal (2009) has
shown, relationships between brands and consumers are based on norms of behaviour. Subsequently both relationship
parties are then expected to adhere to the norms of the relationship. This governance process resonates with bilateral
governance where self-control is implicit.
Influencers In discussing the practice of governance, Heide (1994) articulates how relationship dyads are situated within
a network of other relationships. These relationships may themselves introduce additional implications for governance.
Adopting a stakeholder theory approach, this relational network may consist of those relationships with other external
stakeholders which impact how governance is enacted. In addition the brand‘s governance processes may also be
influenced by the nature of the community and its inclination towards the brand.
Outcomes It is acknowledged that the value of a brand is determined by customers (Keller, 1993; Keller, 2009). This is
manifest as Customer-Based Brand Equity (CBBE). Keller (1993) conceptualises CBBE as consisting of brand
knowledge, a construct composed of brand awareness and brand image. Consequently CBBE accumulates when
customers hold favourable opinions of the brand. However within the social networking site context it is observed that
the managerial approach taken may create opportunities or threats for the brand (Jones et al., 2009). Brand awareness
can be impacted as the sites expose brands to a wide audience. Brand image may be similarly impacted through the sites
framing the brand in positive or negative terms in response to brand events, actions and experiences.
Summary
Through engagement with the broader literature this paper conceptually advances the idea of brand governance. The
contributions of the paper reside in several areas. A conceptual framework of brand governance within social
networking site communities is offered (Figure 1). This model offers an integration of unilateral and bilateral
governance within brand management strategies in the social networking context. Factors capable of determining and
influencing brand governance within the community context of social networking sites are identified. Finally the
potential impact on brand equity of brand governance in social networking site communities is highlighted. Overall this
paper responds to direct calls for brand management to play an active role in the protection of brand equity by
attempting to conceptualise the various approaches to brand governance in social networking site communities.
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