Brand Equity and Service Innovation in Mexican Small Firms

Brand equity and service innovation are two marketing activities that have a vested interest for researchers, scholars and professionals not only because they should be part of the business strategies of any company but also because both constructs produce more and better competitive advantages especially in small service enterprises. Nonetheless, there are relatively few published investigations in the current marketing literature that have analyzed these constructs together. There are even fewer empirical papers focused on small service organizations even when this type of companies are the most common in developing countries as well as those with emerging economies, as it is the case of Mexico. Thus, the main objective of this empirical research is the analysis and discussion of the effects of service innovation in the brand equity of small firms by using a sample of 300 small enterprises and by implementing a model of structural equations that allows a deeper understanding of the current relation between service innovation and brand equity. The results obtained show that service innovation has a positive and significant effect in the level of brand equity of small firms.