administrative
sciences
Article
Explicating Brand Equity in the Information Technology Sector
in Vietnam
Hien Thi Ngoc Huynh
1
, Hoa Doan Xuan Trieu
2
, Phuong Van Nguyen
2,
* , Tue Gia Tran
1
and Long Nguyen Hai Lam
1,3
Citation: Huynh, Hien Thi Ngoc,
Hoa Doan Xuan Trieu, Phuong Van
Nguyen, Tue Gia Tran, and Long
Nguyen Hai Lam. 2021. Explicating
Brand Equity in the Information
Technology Sector in Vietnam.
Administrative Sciences 11: 128.
https://doi.org/10.3390/
admsci11040128
Received: 9 September 2021
Accepted: 5 November 2021
Published: 9 November 2021
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4.0/).
1
The School of Business, International University, Vietnam National University–HCMC,
Ho Chi Minh City 700000, Vietnam; htnhien@hcmiu.edu.vn (H.T.N.H.); gtuee19@gmail.com (T.G.T.);
long@qtsc.com.vn (L.N.H.L.)
2
Center for Public Administration, International University, Vietnam National University–HCMC,
Ho Chi Minh City 700000, Vietnam; tdxhoa@hcmiu.edu.vn
3
Quang Trung Software City, Ho Chi Minh City 700000, Vietnam
* Correspondence: nvphuong@hcmiu.edu.vn; Tel.: +84-28-37244270
Abstract: Vietnamese IT businesses have expanded internationally and have reached a turning point
with opportunities and challenges typical when establishing a global brand. To assist Vietnamese
IT firms in the development of branding strategies, this study investigated the direct influences of
various firm competencies, such as innovation, marketing, networking, and dynamic capabilities, on
brand equity in the business-to-business (B2B) information technology (IT) industry. In addition, the
study examined whether the enterprise’s capabilities indirectly affected B2B brand equity via value
co-creation and customer value. By employing PLS-SEM to analyze a sample of 182 questionnaire
responses from IT firms in Ho Chi Minh City, Vietnam, the study found that innovative, networking,
and dynamic capabilities had a direct, positive effect on brand equity. The mediating effect of value
co-creation and customer value on the association between marketing capability and brand equity
was also reported. The research also recommended branding strategies for enterprises that seek to
improve their internal competencies and abilities to innovate and respond swiftly to market dynamics.
In a successful marketing strategy, all stakeholders must be involved in the value co-creation and
brand equity building process, and this is particularly critical in a knowledge-intensive industry such
as IT.
Keywords: brand equity; innovation capability; dynamic capability, networking capability; IT industry
1. Introduction
Marketing thought has evolved to demonstrate that just being market-focused is not
enough for businesses to guarantee profit and sustainable development in the marketplace.
The competition for customers is intensifying as the world gets closer to globalization and
digital transformation. In addition to delivering quality products and services, companies
must compete for purchasing intention and brand loyalty of their customers as well as their
own long-term brand equity (Cavusgil and Knight 2015). Brand equity has a considerable
impact on financial success despite not being a tangible or entirely quantitative factor.
Brands are among the most valuable assets that a company can develop, and they require
plenty of resources, effort, and patience over a long period. Sustainable brand equity is
determined by how customers perceive the brand’s value and is influenced by elements
such as brand awareness, perceived quality, and market-sector brand image (Myers 2003;
Pike et al. 2010). The ability of a brand to increase the long-term profitability of a company
is also referred to as brand equity (Farquhar 1989; Bonamigo et al. 2020).
Business-to-business (B2B) firms have elevated marketing as a strategic priority. As
brand equity can be built through marketing efforts and customer education, develop-
ing these capabilities can assist businesses in achieving sustainable development and
Adm. Sci. 2021, 11, 128. https://doi.org/10.3390/admsci11040128 https://www.mdpi.com/journal/admsci