Interpretive structural modeling of the role of the Organizational nature on brand identity in the biological industry(A case study of the Razi Institute)

1. Introduction

"Identity" is a concept constantly subjected to change, modernity, and dynamics due to its process-based nature. It is a transhistorical phenomenon and is repeatedly reinterpreted over time. Having an identity in the first place means “To be”, followed by being distinct. Identity is an ongoing search for meaning, and because of this, it is not a fixed but a multi-layered structure (nested identities) (10). The concept of identity in today's era is one of the most abstract and complex concepts that management science deals with from different perspectives of human sciences. The importance of the nature of the organization in post-modern management is that the organization is not a phenomenon that is defined merely by its founders and managers, but it compasses various dimensions of actions within and outside the organization, which interact in a communicative manner and, like dominoes, are both effective and dependent. Accordingly, identity lacks a fixed and objective essence and its manifestations can vary depending on the conditions of place, time, and history (8). Contrary to the view of structuralism that tries to show identity as a fixed concept, it is worth mentioning that identity is a historical and non-fixed concept. This phenomenon is related to "time and situation". Corporate identity is one of the most important parts of the nature of the organization, which is created by the manager. This identity originates from a dedication to pursuing goals with a futuristic perspective. The manager's diverse strategies determine the sense of identity perceived by those outside the organization (1). The common narratives that employees collectively create for their meaning are considered another kind of being that creates the identity of the organization (7). Individual and collective experiences as well as different interpretations, in other words, corporate identity, are a process of collective production, which after being created, acts as a frame or lens. The time horizon of the collective identity is retrospective and originates from the organization's history (8). The organization's identity can be defined as a structural combination of corporate culture, corporate history, structure, and strategy. It is clear is that identity is self-referential meaning, that is, how an organization defines itself (4). The corporate identity is created by the manager, whereas organizational identity depends on the relationship between the employees and the organization, the commitment of the employees, and the identity employees take or create from the organization (6). The managers of the organization are generally looking for success following an ideal future, which is usually presented to the organization in the form of different strategies; in other words, senior managers have defined the identity of the organization in strategies that are mostly determined based on the goals and objectives of the future; however, employees shape their identity from the culture and history of the organization; in other words, it is the perspective of the employees from the organization's history that defines the future for them (22).

H1: The corporate identity variable affects the organizational identity variable.

H2: The employees' perspective variable has an effect on the organizational identity variable.

The history of the organization, as one of the important components of the organizational identity, has been studied by strategists in the last decade as it plays a role as an important and main factor in building the unconscious mind of the organization, which is the involuntary behavior of the organization and an important factor in the interpretation of employees (24). The history of the organization shapes the subconscious minds of the employees and this issue is a perceptual filter that defines the efficiency and inefficiency of the organization's strategy and the degree of employees' cooperation with the strategy which is the adaptation of the past or the future of the organization (18). The use of the term “Rhetoric” emphasizes the fact that the history of the organization can be constructed; in other words, the way of expressing the history based on the corporate’s goals and strategies can be the point of connection between the organization's past and future (17). Historical rhetoric limits organizations in the construction of identity and should be considered an important source (9). The organizational identity also reinterprets the historical rhetoric; in other words, there is a kind of interaction between the organization’s history and the current identity in re-reading the history of the organization (21). H3: The historical rhetoric variable of the organization affects the organizational identity variable. Organizational image is simply defined as how the organization is perceived. Usually, definitions related to identity are a combination of marketing and organization theories. Organizational image is created by the market and the organization’s environment and is returned to the organization (23). Normally, organizations disregard the existing image in the public perception and seek to formulate organizational image unilaterally (3). In postmodern companies, the organization-environment separation has disappeared and there is no more distinction between "we inside the company" and "those outside the company" (16). Corporates may define a unique vision, have a superior product, and provide efficient distribution; however, if they fail to communicate the primary advantages of the brand to the customer, the organizational identity and brand image might develop independently, resulting in a lack of alignment between the two (20).

H4: The organizational image variable has an effect on the organizational identity variable.

Brand identity is the most valuable asset of technology-oriented organizations. Brand identity is the meaning and stories that have been incorporated into the brand from the company (17). Brand, as a symbol carrying multiple connotations, serves as an embodiment of the organizational identity, establishing a reciprocal link between the perspectives of market actors and the company (14). The identity of creativity is intertwined with various abstract factors that are based on social cognition. Building a successful brand identity requires engaging customers in the process that involves creating a coherent story of the product and the company (2). Certain research studies have concentrated on psychological aspects, such as brand personality, emphasizing primary and secondary traits, self-image associations, visual identity, and related subjects. On the other hand, some have placed greater emphasis on sociological aspects alongside psychological dimensions. As a result, rather than focusing on brand personality, they have employed the term "brand identity," exploring concepts such as brand culture, brand community, and organizational image (11). Customers do not merely receive value; instead, they actively contribute to value creation, competitive strategy, and innovation processes; this emphasis on the brand community has become a focal point in modern marketing (5). Brand is considered a part of social construction that has a personal and social identity. Organizational identity also plays a fundamental role in this combination and creates a unique inner feeling in the consumer (12). Brand community denotes a social structure developed by the company around its brand, fostering enduring and secure relationships while cultivating emotional ties between customers and the brand (25). The conscious and unconscious development of brand communities has a significant impact on the behavior of the brand community. Brand community aims to engage both active customers and inactive ones who passively follow the company's activities, to convert the latter into active community members. A cohesive brand community leads to word-of-mouth recommendations and brand protection. When individuals have a meaningful connection with the brand's community identity, they tend to dismiss negative information about the organization and brand as a potential threat (15).

H5: The primary identity variable has an effect on the brand identity variable.

H6: The visual identity variable has an effect on the brand identity variable.

H7: The organizational identity variable manifested in the brand affects the brand identity variable.

H8: The brand culture variable has an effect on the brand identity variable.

H9: The brand image variable has an effect on the brand identity variable.

H10: The brand community identity variable affects the brand identity variable.

H11: The brand identity variable has an effect on the organizational identity.

Environmental dimensions: Whereas organizational identity relates to specific product-level actions (the “what”), industry identity outlines the players, norms, and boundaries of the competitive space (the “who”), and strategic group identity addresses the approach to competition (the “how”) (10). Adaptation and differentiation are considered two approaches in identity building. Adaptation involves aligning with industry executives and competitors, as well as comprehending the industry's rules and maintaining a presence within it. Differentiation is achieved when the organization eventually reaches adaption and seeks to create value differentiation with the experiences gained (8). Corporates follow adaptation or differentiation strategies based on various factors, such as brand strength, diversity in the product portfolio, and the level of organizational maturity. Successful companies that are at the maturity level of the organization's life have reached the capability and knowledge management necessary at the industry level with the adaptation strategy, and this is when they can take the position of the leader in the industry with differentiation strategies (19).

H12: The industry identity variable has a mediating role in the relationship between brand identity and organization identity and has a significant effect on this relationship.

H13: The strategic group identity variable has a mediating role in the relationship between brand identity and organizational identity and has a significant impact on this relationship.

H14: The business maturity variable has a significant moderating role in the effect of brand identity on organizational identity.

H15: The business maturity variable has a significant moderating role in the effect of industry identity on organization identity.

H16: The business maturity variable has a significant moderating role in the effect of the strategic group identity on the organizational identity.

In this section, based on the subject literature and explained hypotheses, the conceptual model of the research is presented in Figure 1.

2. Materials and Methods

In complex models where the distribution of data is not normal, variance-based methods are used to predict the results of hypotheses (18). The statistical population included 1,870 individuals from sales representatives, inoculation centers, and veterinarians in Iran. Bartlett's sphericity test was used for sampling adequacy, and according to (x2=8233.895, df=495, P=0.000) KMO was equal to 0.818, which was higher than the value of 0.7, and therefore, the adequacy of the sample was confirmed. The obtained model as well as the researcher's questionnaire were derived from the qualitative studies conducted by the researcher and was tested by quantitative methods based on the topic-related literature and field interviews conducted at this stage. The questionnaire consisted of 40 items rated on a Likert scale. A total of 251 questionnaires were sent, and with a response rate of 80%, 201 questionnaires were used in the analysis of structural equation modeling, whose structural model is presented in Figure 2.

2.1 Data analysis

Initially, a homogeneity test was performed, and 0.6 was used as the comparison basis (18). The results are presented in Table 1, and the indices above the cut-off point were accepted. Reliability was checked through three methods. Based on the results of reliability data in Table 2, the output model was reliable. Cronbach's alpha measured the correlation between questions, while composite reliability (CR) assessed the correlation among questions in the model structure, and shared reliability gauged the correlation in the model. In assessing convergent validity, the initial criterion was that the average variance extracted (AVE) should be greater than 0.5. The AVE values for all the latent variables in the research exceeded 0.5, meeting this criterion. According to Fornell and Larcker (1981), AVE > 0.5 meets the first criterion of convergent validity for the research model. The second condition of convergent validity (i.e., CR>AVE) was also confirmed (Table 3).

Divergent validity was assessed using three tests of the cross-loadings method, the Fornell and Larcker criterion, and a multitrait-multimethod matrix. In the cross-loadings matrix, as shown in Table 4, each research question exhibited a correlation with its respective variable that was at least 0.1 higher than its correlation with other variables, which indicated the appropriateness of the divergent validity of the outer models of the research. The results of the Fornell and Larker method, as presented in Table 5, showed that a variable in the model interacted more with its indicators than with other variables, and the root of AVE for each variable was greater than the correlation between that variable and other variables. The divergent validity between the latent variables of the model was confirmed in this test. In the multitrait-multimethod test for divergent validity, as shown in Table 6, it is evident from Henseler and Ringle's (2015) findings that all variable pairs in the research outer model exhibited a Heterotrait-Monotrait Ratio of less than 0.9. In general, according to the previous two tests, the validity of the research model was confirmed. Through conducting tests to confirm convergent and divergent validity, it can be asserted that this reflective outer model demonstrates construct validity. The test of the rhetorical variables of the organization and the central identity of the brand were performed as the formative latent variables in the model. The coefficient test works similarly to confirmatory factor analysis in formative variables (18). The variables that had a significant weight remained. Table 7 demonstrates that the formative variables are higher than 0.06. A cross-validated communality (CV com) was used to check the quality of the final outer model. Three values were compared, including 0.02 as weak, 0.15 as medium, and 0.35 as strong (18). As presented in Table 8, all the main variables of the model exhibited CV com values at a very strong level, signifying the very high quality of the outer reflective model in the current research The hypotheses of the conceptual model were tested based on Path coefficients and significance tests, and according to the opinion of  Hair (2014),  predict the results for the statistical population.. The results of the path coefficients test are presented in Table 9. The prediction precision of the endogenous latent variables (R²) for the endogenous variable of organizational identity was estimated at 0.735, and the adjusted R-squared was 0.731. Three values of 0.25, 0.50, and 0.75 have been introduced as criteria for weak, medium, and strong values for the R² criterion (18). The variables of the model could predict the behavior of the organizational identity with a coefficient of determination of 0.731 at a close-to-strong level. The cross-validated redundancy (CV RED) prediction quality test for the endogenous variable of organizational identity yielded a value of 0.391, indicating that the overall quality of the inner model for the main endogenous variables ranged from strong to medium-to-high levels. In the examination of fit, according to Ringel (2016) who matched the researcher's observations in the sample with the society's reality, the index values of standardized root mean square residual (SRMR) were firstly calculated in the software and then compared with the cut-off point of 0.08. The value of the SRMR=0.073 index was smaller than the corresponding cut-off point, which showed the fit of the overall research model, thus revealing the match between the observations and the reality (goodness-of-fit=0.593). Considering that the value of the index was much higher than 0.36, it can be concluded that the general model of the research had a very good fit and could test the hypotheses with a precision of up to 97%.

2.2 Mediation Variables Analysis

 Based on the variance accounted for (VAF) of 0.997 and using the bootstrapping method to match the Mediation analysis algorithm (Table 10), it can be concluded that the industry identity variable was a strong mediator in the relationship between brand identity and organizational identity. Moreover, according to VAF = 0.991, strategic group identity was a strong mediator for two brand identity and organizational identity variables.

2.3 Moderating Variables Analysis

The Moderating variable was mentioned in the hypothesis test, and the Moderating variable hypotheses are presented in Table 11 along with the results.

3. Results

The results of the first hypothesis showed that according to studies (3), corporate identity affected the success of the organization's strategies. According to its minor significance, the long-term policies of the Razi Institute have only contributed marginally to market development. Based on the findings of the second hypothesis, the employees of the Razi Institute have been assessed as having a low effect size in meeting their organization's market obligations, and the organization has been able to turn the capabilities of its employees into a competitive advantage in a low effect size. The results of the third hypothesis indicated a gap between the organizational image (how the organization is seen) and the reflective organizational image (how others see us). Overall, the organizational image of the Razi Institute forms a significant connection among vaccine purchasers, yet the resulting effect size was low. The findings of the fourth hypothesis aligned with previous research (16) and confirmed its significance as a variable in the model. Nonetheless, the obtained effect size indicated that the organization has not effectively portrayed its 100-year history as a strength. The results of the fifth hypothesis demonstrated that, as perceived by market actors, the efficacy of the vaccine, its effects and potential complications after administration, and consistent vaccine distribution in the central identity variable significantly influenced the brand identity; however, the impact was weak. The findings of the sixth hypothesis revealed that the visual identity index played a significant role in the model. However, its low effect size suggests that the organization currently employs very traditional approaches in the design and appearance of its products, and has not achieved favorable outcomes in brand identification. The results of the seventh hypothesis indicated that highlighting the presence of skilled scientists in organizational narratives had a more significant influence on brand identity compared to other factors. This was demonstrated in the context of the development of the new COVID vaccine and scientific speech. The general results of confirming the hypothesis were in line with previous research (4, 6) and a study by Hay and Brown (2013) which indicated that introducing a new product and enhancing the product portfolio helped to strengthen Razi Institute's brand identity.

The results of the eighth hypothesis demonstrated that brand culture had a significant effect on the model, highlighting the importance of brand culture, which was consistent with the results of another study (13). Foreign brands are preferred over Iranian products in the country. The findings of the ninth hypothesis showed that the variable of brand image had a significant relationship with brand identity in the model, which was in line with the findings of a study (1). However, the effect size indicated a weak correlation between the organizational image and the brand image. This suggests that the brand image is shaped by a distinct environment. The results of the tenth hypothesis showed that the brand community identity had a significant relationship with the brand identity in the model. The average effect size indicated that it played a significant role in strengthening the brand. Consistent with the results of another study (5), this research discovered that brand production involves a mutually joint relationship. The findings of the eleventh hypothesis aligned with previous research (3,23) and confirmed its significance as a variable in the model. Nevertheless, the weak effect size obtained is since all the effects of the previous factors in the hypothesis are effective and each of the components can have a negative or positive effect on the relationship between the brand and the organization. The components of the brand identity including Primary identity (PI), Visual identity (VI), Perceived organizational identity (POI), Brand culture (BC), brand image (B-Im), and Brand community identity (BCI) were examined separately and suggestions were presented for each one. When examining the twelfth hypothesis as a mediating variable, the Sobel and bootstrapping tests revealed that the industry identity variable was a strong mediator in the relationship between the brand identity and organizational identity variables. Iran Veterinary Organization and the Ministry of Health, as industry organizations, define competition boundaries, norms, and requirements. In the thirteenth hypothesis, the strategic group variable was a strong but inverse mediator in the relationship between the brand identity and organizational identity variables. The inverse effect of the mediator variable also showed that competitors had played a more active role in the market, and the role of Razi Institute was smaller than its

competitors. When investigating the final three hypotheses (i.e., 14-16) concerning the moderating role of maturity, the findings suggested that business maturity played a moderating role in the relationship between the organization and the brand. However, the impact was limited, indicating that organizational maturity was perceived as lacking by the respondents, leading to a negative effect on the relationship.

4. Discussion

To create a powerful brand identity, it is highly important to pay attention to several components. The first component is the organizational identity, which is the origin of any action. To align organizational identity with brand identity, it is recommended to systematically engage in communication with market stakeholders, particularly clinicians and representatives. Emphasis should be placed on initiatives, such as regular brainstorming sessions, practical vaccine training programs, and reinforcing brand association. This approach will foster proximity between the organization and the market, providing an opportunity to turn the organizational identity into market culture. The second component, competitors, must be taken into account as key industry stakeholders. It is essential to conduct benchmarking to learn from competitors' packaging techniques to enhance the visual identity. It is also important to observe the production of polyvalent vaccines distributed by competitors, as well as model their pricing strategies, discount offerings, and distribution methods. The third component was the industry identity, which consisted of two dimensions: technology and institution. By focusing on industry-specific technological demands, such as developing recombinant vaccines, adopting innovative packaging methods, and producing polyvalent vaccines, it is feasible to align with industry requirements. Communication with national organizations, such as the Iran Veterinary Organization and the Ministry of Health, and international organizations, such as World Health Organization and World Organization fir Animal Health, is necessary to be continuously followed up to inform, align, and influence the rules of the game in the industry. The fourth component was the community identity of the Razi brand, comprising provincial sales representatives, clinicians, and major industrial farms, serving as a crucial pillar for sustainability in the industry. Currently, only some provincial representatives are active in the development and protection of the Razi brand. It is suggested to utilize communication strategies to turn passive representatives and clinicians into active ones to strengthen the identity of the brand community.