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Abstract
Purpose To advance understanding of an individuals identification with an organisation
(organisational identification) and propose a scale for its measurement, by means of a study
drawing upon the literature of corporate marketing, and group and corporate identification.
Design/methodology/approach Factor analysis was applied to data collected by
questionnaire from two independent samples of 200 and 525 respondents, in Slovenia, to test
the causal-path relationship of group and corporate identification to organisational
identification.
Findings Contrary to the prevailing wisdom, organisational identification is not a
unidimensional construct, but comprises identification with the organisation both as a
collective of individuals and as a social entity. Results confirm the proposed structure of
organisational identification, and the sound quality of the scale for its measurement.
Practical implications The findings suggest a means for marketing strategists and managers
to predict the forms of organisational identification in their organisations, undertake
appropriate initiatives for its general enhancement, and thereby strengthen corporate
performance.
Originality/value This study offers two statistically verified scales for measuring group and
corporate identification, and thus has important implications for the existing literature of
corporate marketing and organisational identification.
2
1. Introduction
A key concern of corporate-level marketing is the maintenance of exchange
relationships with multiple stakeholder groups and networks (Balmer, 1998; Balmer and
Greyser, 2006), both externally and internally (Powell, 2007). Researchers in corporate
marketing, for example Punjaisri and Wilson (2007), argue that corporate marketing should
recognise the importance not only of consumers but also of other stakeholders such as
employees. Indeed, employees are a valuable corporate resource and should therefore be
managed in a way that is most positive from the company standpoint. Corporate marketing is
an important way to achieve this, because it can enhance employees perceptions of the
attractiveness of the organisation, by emphasising the aspects of corporate values with which
they are likely to feel an affinity, and thereby increase their predisposition to identify with the
organisation and its culture (Balmer, 2001; Balmer, 2008). Employees that do so strongly are
especially valuable (Smidts et al., 2001), and provide an important competitive advantage for
the company (Stuart, 2002), because identification directly affects their work-related
decisions and behaviour (Dutton et al., 1994; Pratt, 2001; Edwards and Peccei, 2007).
Positive behaviour patterns associated with a high level of organisational identification
include: improved co-operation; performing above and beyond the call of duty (Miller et al.,
2000); and remaining with the company (Reade, 2001). From a managerial perspective,
identification is advantageous in ensuring that employees decisions are congruent with
organisational goals and the corporate brand, and are in the organisations best interests, even
in the absence of supervision (Miller et al., 2000).
The marketing literature examines identification with a company mainly in relation to
customer behaviour, neglecting its important internal role in stimulating a sense of oneness
with the organisation, stimulated by internal marketing. Wieseke et al. (2009) found, for
example, that a leaders identification with a company directly influences the extent of
3
followers, which has important implications for corporate marketing performance.
Similarly, Wieseke et al. (2007) suggest that it is a determinant of customer orientation in
service organisations. In the marketing context, Berger et al. (2006) found influential social
alliances and strong internal brand communities, based on employees identification with
their organisations, while Balmer (2008) has very recently argued that a strong corporate
identity or corporate brand must be promulgated if employee identification with a company is
to occur.
Organisational identification, defined by Reade (2001) as the process of
psychological bonding between an individual and his or her work organisation, is an
important goal in corporate marketing (Balmer, 2009). Despite consensus about its
importance and consequences, we still lack a full understanding of this construct. Authors,
approaching the topic from different theoretical perspectives, too often use the description
without explaining how they construe organisation: as a group of people or as an entity in
itself. This confusion results in turn to different understandings of the term organisational
identification. Those who do give due consideration to the terminology agree that there can
be more than one focus for identification, as a member of a group (Ashforth and Mael, 1989;
Van Knippenberg and Van Schie, 2000; Ashforth and Johnson, 2001) or with the organisation
itself, as a social entity or a brand (Balmer, 2008). Thus, a creative director in an advertising
agency might identify with the colleagues in his or her creative team and also with the image
the agency projects to the world outside.
The failure of previous studies to make a clear conceptual and empirical distinction
between one focus and another is a notable gap in the research, because concentrating on a
single aspect of the organisation may result in serious omissions. For example, the managerial
implications of weak identification with the people who make up the organisation would
logically be different from those flowing from a low level of identification with the
4
organisation as an entity. In the first case, the strategic response might be to encourage the
sense of a work community; in the second, it could be to strengthen the corporate brand
internally. It is thus important to disentangle these dual foci of organisational identification,
with a view to enhancing understanding of their roles, antecedents and consequences.
Accordingly, the aim of the research study reported in this paper was to integrate two
complementary views on organisational identification and on the organisation itself. To
achieve this, we tested a research proposition empirically by gathering and analysing data
collected from a primary sample and a control sample.
2. Theoretical framework
2.1 Organisational identification and the notion of organisation
We begin the development of our theoretical framework with a discussion of the
different understandings of the term organisation that are encountered in the literature,
because we believe that those conceptions have significantly influenced authors approaches
to the subject of organisational identification. To strengthen understanding of this focal
concept in our research by linking it with the notion of organisation as the basis for
identification. Though previous researchers have agreed that the process of organisational
identification is based on individual sense of oneness with a particular social category and/or
object, they have tended to use the single term organisation to describe two opposite views
of the phenomenon under consideration as a collective of employees or members, and as an
autonomous entity without explaining which one they are referring to.
Researchers in the field of corporate and organisational identity have their roots in a
variety of subject backgrounds, which can be broadly categorised into two intellectual
orientations: functionalist and interpretative. The first group treat an organisation as an entity
or brand with an identity separate from that of its it owners, members or employees (Balmer,
5
2008; Benjamin and Bronstein, 1987; Swidorski, 1994), as a unit acting on behalf of a
constituency (Blumer, 1969). A fixed and static organisational structure determines the goals
and activities of its members, or employees, who are perceived merely as means of achieving
organisational goals (Putnam, 1983). In short, an organisation is a system that pursues its own
particular interests. The interpretative view, on the other hand, is that an organisation is a
group of individuals with a common goal. It is not a monolithic entity, but a coalition of
cooperative individuals and groups with different interests: a social aggregate (Putnam, 1983;
Whetten and Mackey, 2002).
When discussing the manifest identity of an organisation, the functionalist school of
thought normally thinks in terms of corporate identity (for instance: Balmer, 2003; Van
Riel, 1995) rather than the descriptions group identity or organisational identity used
throughout a recent textbook (Hatch and Schultz, 2004). Corporate identity has been defined
by Balmer and Greyser (2003) as an organisations uniqueness expressed in a set of
distinctive attributes, whereas Albert and Whetten (1985) described organisational identity as
a composite of central, distinctive and enduring characteristics shared throughout the
members of the organisation. Balmer and Soenen (1997) found it impossible to differentiate
the two concepts completely, despite their manifest differences, because both group (or
organisational) and corporate identity include intertwined measurable and non-measurable
dimensions. This observation is consistent with the recognition that both concepts form a
coherent unit. It also shows the duality of organisation as a group of people on the one hand,
and as an autonomous social entity on the other (Brown and Isaacs, 1995). Similarly,
Cornelissen et al. (2007) suggest that it is possible and valuable to integrate different concepts
of social, organisational and corporate identity.
On the basis of this evidence from the literature, we believe that the functionalist and
interpretative conceptualisations of an organisation and its identity represent two modes or
6
foci of identification. These seem not to have been explicitly recognised among researchers
and writers in the field of organisational theory, who tend to use the term organisational
identification for both. By contrast, the corporate marketing literature has already made
distinction. For example, Balmer (2008) distinguishes identification with a corporate culture,
by members of an organisation who affirm their identification by emphasising what they have
in common with other members, from identification with a corporation, which is focused on
corporate identity or the corporate brand. In so doing, he observes that researchers who adopt
the functionalist paradigm mostly come from a marketing background, whereas the parent
discipline of adherents of the interpretative alternative is typically organisational behaviour.
The interpretative framework of organisational identification has most often linked the
process to social identity theory (Tajfel, 1978; Turner, 1984; Hogg and Abrams, 1998),
defining it as the perception of sharing experiences of a focal group and sharing
characteristics of the groups members (Mael and Tetrick, 1992): in the context of
commercial organisations, their fellow employees. Both Elsbach and Bhattacharya (2001) and
Smidts et al. (2001) describe organisational identification as a sense of oneness with the
organisation. It is a cognitive connection between an individual and the organisation (Bamber
and Iyer, 2002), a process in which an individuals beliefs about the organisation become selfreferent (Pratt, 1998). Specifically, the interpretive researchers Stoel (2002) and Polzer (2004)
treat organisational identification as a subset of the more general process of personal
identification with a group, defined by Ashforth and Mael (1989) as the perception of oneness
with, or belongingness to, a particular human aggregate, specifically within an interacting
group of employees.
The second conception of identification coincides with the functionalist paradigm.
Dutton et al. (1994) construe organisational identification as the degree to which a member
defines himself or herself by the same attributes that he or she believes to define the identity
7
of the organisation. Similarly, Siegel and Sisaye (1997) argue that organisational
identification is a coherence between a corporate image and an employees self-image. The
organisation as an object of identification is thus something more than just a group of people.
Rather, it is a broader social category, a distinctive and unique entity with its own string of
characteristics, identification with which can occur independently from interpersonal
interactions, and is more abstract (Alvesson, 2000; Ashforth and Mael, 1989).
8
workgroups, which are perceived as stronger identity groups because they are relatively
concrete and their impact on the individual is more direct. However, the higher-order identity
of the organisation as a whole can be more important for both employees and managers, the
latter being able to encourage the former to pursue organisational goals ahead of group goals
(Ashforth and Johnson, 2001). It is for this reason that marketing and organisational
researchers tend to concentrate their attention on attachment to the organisation as a whole
(Edwards and Peccei, 2007; Van Knippenberg and Van Schie, 2000; Wieseke et al., 2009). A
further motivation may be the fact that employee identification with the organisation can have
a greater impact on organisational performance (Ullrich et al., 2007) and better match the
perspectives and objectives of corporate-level marketing.
Most investigations of identification in the organisational context tend either to study
the effect of a focus on lower-order identities only (e.g. Van Dick and Wagner, 2002) or on
both lower-order and higher-order identities (e.g. Van Knippenberg and Van Schie, 2000;
Ullrich et al., 2007). We believe that it is also important to study a range of higher-order foci
of organisational identification, because it is especially those that corporate marketing
strategy aims to influence in pursuit of internal marketing goals. Ullrich et al. (2007) reinforce
this priority, in arguing that understanding of higher-order foci can be an important resource
for managers seeking to attain the distinctive higher-order goals, such as the minimising of
between-team conflict or enhancing employees internalisation of corporate brand values.
This is one key motive for the investigation of higher-order identification in more detail than
previously, to the benefit of marketing management.
The literature suggests that individuals will perceive and construct the organisations of
which they are members in two coexisting ways. First, they form a psychological contract
with the organisation as an entity (Turnley and Feldman, 1999; Bligh and Carsten, 2005), and
corporate identification results when they absorb favourable and enduring images of it,
9
influenced by communication and explanation of the organisation as a brand (Dutton et al.,
1994; Simes et al., 2005). Although studies typically assume that such projections lead to
positive identification, it is a fact that they could alternatively produce a negative result. For
example, Pratt (2001) has argued that an individual may maintain an independent sense of
self, and wants to draw a distinction between his or her personal identity and that of the
organisation, in which circumstances, the organisations identity projections are likely to lead
to non-identification instead of identification. That possibility is supported by the work of
Powell and Ennis (2007). Though we readily acknowledge these opposed alternative
outcomes, our study focused primarily on positive identification.
The second way in which individuals perceive and construct the organisations to
which they belong is through interactions with other workers (Alvesson, 2000), which means
that an individual identifies with a corporate culture (Balmer, 2008). This is group
identification, but is distinct from the process of work-group identification described by Van
Knippenberg and Van Schie (2000), in which employees identify themselves with immediate
work colleagues. In our sense of the term, group identification refers to employees
membership in a broader group of people: the organisation as a whole.
Figure 1 illustrates the distinction between group identification and corporate
identification, schematically. Both of these higher-order foci of identification are important in
terms of comprehension of the identification process and awareness of its management
implications.
3. Methodology
10
The dual understanding of organisational identification and organisational identity
summarised in the previous section leads us to the following research proposition.
The process of organisational identification has two distinct foci: group
identification, with an organisation as a group of people, and corporate
identification, with an organisation as an entity in its own right.
We argue that both group identification and corporate identification should be taken into
account in any measure of organisational identification. The empirical study reported next
accordingly set out to verify that proposition, and to develop and test a measuring instrument,
based on the theoretical framework established in the previous section.
11
the one used by Van Knippenberg and Van Schie (2000), our survey respondents were
instructed to think of their fellow employees in general, not of any group within the firm.
The second focus of organisational identification, corporate identification, is an
individuals perception that his or her personal characteristics are consistent with the
companys: a sense of oneness with the company as a social unit or a brand (Dutton et al.,
1994).
12
identification, presented as a causal-path model relating from 19 items via two latent variables
to the composite organisational identification construct.
13
We selected the respondents within the individual agencies by systematic random
sampling, with a sampling interval of 3 for the agencies and 2 for the respondents, to
minimise selection bias and assure as representative a sample as possible. The questionnaires
were administrated personally, and data were collected from 200 employees of 12 agencies;
145 (72%) of returned questionnaires were usable in the data analysis. The sample
composition was 38% male and 62% female, and almost half under 30 years of age.
Selection of the control sample was purposive. Respondents were drawn from the staff
list of a medium-sized wholesaler, one of the countrys largest companies by income, which
also offers brand management support services to brand owners. The chief selection criterion
was that its employees mainly worked on permanent contracts, in contrast to the flexible
employment arrangements that characterise marketing communication agencies. In this
survey, 525 questionnaire were distributed among employees at their place of work, and
returned by 133 (28%), 30% of whom were male and 65% female. The age distribution was
slightly different from that in the primary sample, the majority being aged between 30 and 40.
14
component having an eigenvalue of 5.9 and other components eigenvalues being all below
1.0. Thus, the principal component explains almost 60% of variance. The Cronbachs Alpha
coefficient was 0.92.
In analysis of data obtained from the control sample, corporate identification items
were again grouped on a single dimension. The percentage of variance explained reached
64% and internal consistency was higher, at = 0.94.
The empirical results for group and corporate identification are not consistent with the
suggested theoretical three-dimensional model. Similar results had already been obtained by
Henry et al. (1999), the authors of the proposed theoretical model. In their study, the cognitive
15
and affective sub-dimensions were combined, leaving behavioural as a sole second
dimension. They concluded that, in the case of very diverse groups, two-dimensional
solutions of group identification should be expected. A high correlation between the two
dimensions was also both typical and expected.
Lastly, we subjected the data from our primary sample to confirmatory factor analysis,
using LISREL 8.54, in order to verify the quality of the organisational identification scale.
There were no paths representing secondary loadings, each item reflecting only its relevant
factor, and the factors also free to correlate. The overall fit of the model was very good
(RMSEA=0.025; model statistics 2= 54.54, p =0.30603; CFI=1; GFI=0.94). The results
indicate that corporate and group identifications are indeed separate, though correlated,
constructs. The two foci of organisational identification and the good quality of the
measurement scale for this construct can be confirmed.
16
17
and measurements for the assessment of corporate identification that are independent of the
notion of group identification.
Third, we strongly believe that the distinction between the two higher-order modes of
identification, group and corporate, should alert researchers and practitioners concerned with
the role of corporate marketing in the management of organisational identification to the
strategic value of identifying the different modes of organisational identification in a given
company, and the different initiatives that will be needed to influence them to best advantage.
For the support and reinforcement of corporate identification, those could be selected
techniques for building a strong corporate brand internally, such as targeted internal
communication, training support to strengthen employee engagement, and rewards and
recognition aimed at reinforcing behaviour positively connected to brand values. With respect
to higher-level group identification, managers might implement initiatives that create a sense
of work community, such as team building seminars, informal social events, and the design of
supportive working environments.
Our findings moreover suggest that marketing academics and practising managers can
exploit the distinction between group and corporate identification to predict and categorise the
related behaviour of employees in their own organisations. In general, we can predict four
such categories, containing individuals who combine: high corporate and high group
identification; low corporate and low group identification; low group and high corporate
identification; and low corporate and high group identification. The findings of our study also
suggest the possibility of predicting possible consequences of identification. For example:
when both foci are low, the eventual outcome may be organisational disintegration; when
corporate identification prevails over group identification, the result may be internal rivalry
and competitiveness. The consideration of such different consequences is an important input
to internal branding programmes and decisions about human resource management.
18
19
downsizing and redundancies became necessary, yet it will obviously be an important asset
when the priority is to project a positive image to clients and other external stakeholders.
Future research could therefore focus more specifically on the role of each type of
identification in the achievement of different strategic marketing goals, and on the marketing
management initiatives needed to influence the identification process. Case studies might
usefully deliver a deeper understanding of the link between organisational identification and
corporate effectiveness.
Finally, an interesting topic of future research would be to compare organisational
identification internally with that to be found among external stakeholders, such as actual and
potential customers or business partners, to the benefit of both internal and external marketing
strategy.
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Acknowledgement
The authors wish to thank the anonymous reviewers and the guest editors for valuable
comments which have greatly helped to improve this paper.
26
Figure 1: The dual nature of an organisation and the foci of individual identification
Community
Organisation
Organisation
Brand
As a group of people
As a social entity
Group identification
Corporate identification
An individual
27
Figure 2: The research model
Corporate
Identification
for
Organisational
Identification
Group Identification
NOTE.
Ovals represent latent variables, and boxes their indicators (items).
28
Table I: Multi-item scales for organisational identification, with correlation analysis
Items
Correlations
CI
GI
0.80
0.71
0.37
0.26
0.72
0.78
0.78
0.79
0.85
0.74
0.31
0.30
0.28
0.32
0.42
0.21*
0.65
0.26
0.85
0.30
CI
GI
0.29
0.45
0.26
0.77
0.79
0.68
0.40
0.12**
0.23
0.77
0.68
0.70
behavioral
GIB1 Together with my co-workers, we can accomplish more
0.26
0.56
GIB2 In my company, co-workers can rely on each other
0.27
0.68
GIB3 In this company, employees cooperate to complete group 0.29
0.72
tasks
NOTES:
Data relate to primary sample; n = 145.
Mean values on scale from 1 to 5.
Correlations statistically significant at p< 0.01, except when marked * (p< 0.05) or ** (not
statistically significant).
Item correlations measured within the corporate identification scale and between scales.
29
Table II: Factor analysis of group-identification items
Items
Factor 1
Cognitiveaffective
identification
0.87
0.75
0.70
0.68
0.45
0.41
Factor 2
Behavioral
identification
-0.08
0.73
0.08
0.16
0.72
0.64
Eigenvalue
4.54
1.09
-0.08
0.04
-0.08
0.17
0.22
0.29
30
Table III: Factor and reliability analyses of organisational-identification items
Items
Factor 1
Corporate
identification
0.87
0.82
0.77
0.77
0.75
0.74
0.72
Factor 2
Group
identification
-0.05
0.10
0.01
-0.03
0.03
0.09
-0.09
0.66
-0.01
0.66
0.57
0.05
0.03
-0.01
0.17
-0.18
0.13
0.03
0.74
0.72
0.71
0.69
0.67
0.01
0.66
-0.04
0.02
0.08
0.66
0.59
0.48
Eigenvalue
7.5
3.1
Cronbachs Alpha
0.92
0.87