1. Introduction
Regional branding can promote the economic growth of regions, which can entail a brand’s development based on its geographic location (Eshuis et al. [
1]), usually with the aim of triggering associations, adding value, and distinguishing a region from others (Kladou et al. [
2]). A strong and attractive regional brand (RB) can create a value-added premium (Bo and Yang [
3]), help regions acquire a competitive advantage over others (Soltani et al. [
4]), and thus contribute to the sustainable development of a region. Very recently, it has been proposed that embedding culture as a kind of regional advantage into RB products can help improve the behavior loyalty of customers (Xu and Zhao, [
5]). In addition, the RB agricultural product can also be taken as an important tool to promote the development of the regional economy into low-carbon agricultural production in China (Xu et al. [
6]). Because of the above-mentioned benefits, there has been a rapid increase in RB being registered and formed in China to exploit the country’s abundant regional resources (Lu and Sun [
7]).
Unfortunately, the quality of development of regional brands (RBs) in China is not as good as expected due to multiple factors. First, due to RB having the characteristics of public goods, it has an obvious free rider problem (Pasquinelli [
8]), especially in the long development or promotion stage, which needs to continuously enrich the sustainability of the brands and quality of the products. Secondly, due to the short construction time and a lack of experience in China, the status quo results in “learning from each other” and tends to homogenize the constructed RB, where the misalignment between a regional branding mode and resource conditions not only wastes resources but also prevents competitiveness and the superior capacity of RB products (Zheng et al. [
9]). Thirdly, some RBs in China still have problems such as uneven distribution, small scale, and low brand value (Wang [
10]). As a result, how to help RBs’ sustainable development in China is an important issue.
This article attempts to offer potential solutions to solve this problem by promoting RBs based on psychological theories and from the perspective of stakeholders. Due to the characteristics of the public goods of RB (Pasquinelli [
8]), it is thus of significant importance to take into account all the stakeholders involved in the branding and promotion process (Donner and Fort [
11]). Of all the stakeholders (including public government managers of the RB, business owners of the RB, and consumers of the regional product based on Margarisová and Vokáčová [
12]) involved in developing RBs, business owners are key in a diverse network of actors and so their roles must be fully identified and emphasized (Reynolds et al. [
13]). Eshuis et al. [
14] argued that the involvement of business owners who carry professional knowledge and corporate interests together with financial resources could positively increase the influence and effect of regional branding policies compared to residents and public managers. Thus, it is essential to involve them in the design and development of related policies and promote their active participation in regional branding (Zhou et al. [
15]). Furthermore, it is also necessary to consider the interplay of different kinds of key stakeholders in promoting RBs, for example, by proposing a novel conceptual model and using quantitative analysis methods.
Based on the above discussion, it is now clear that the success of RBs depends on their active and effective participation, including their promotion by business owners, and thus there is an urgent need to analyze the factors influencing business owners’ engagement behavior. However, the literature on behavior associated with RBs has often focused on residents (Chen and Dwyer [
16]; Eshuis et al. [
14]), consumers (Cheung et al. [
17]; Jiang et al. [
18]; Xu and Zhao [
5]), and the government (Sun et al. [
19]); to the best of our knowledge, very little research has focused on the behavior of business owners in the promoting or developmental stages of RBs. Other gaps in the literature can be summarized as follows, (1) current research on companies’ behavior has centered on the initial creation stage of RBs, and there is a glaring paucity of research on the promotion stage of existing RBs; (2) Eshuis et al. [
14], Reynolds et al. [
13], and Binderkrantz et al. [
20] underscored companies’ involvement in the place marketing process and used the qualitative analysis method, but were unable to provide quantifiable measures or to identify the rankings of influencing factors based on the degree of significance; (3) only a few studies have used “promoting regional brand behavior” as an outcome variable, and identifying and choosing this variable in the conceptual model to be proposed in this work offers a novel perspective to solve the problems encountered in the promotional stages of existing RBs.
From the stakeholders’ perspective and after synthesizing relevant theories, including TPB (theory of planned behavior; Ajzen [
21]) and ABC (attitude–behavior–context theory; Guagnano et al. [
22]), five latent variables were identified for use in constructing the conceptual model. In summary, these five variables included (1) behavior toward promoting regional brands (BPRB) from the firm or business owners, which is the outcome variable learned from the TPB; (2) attitude toward promoting regional brands (APRB) by the firm or business owners, which is a variable from the TPB; (3) consumer pressure (CP) perceived by business owners, which is from the subjective norm variable in the TPB; (4) government policy (GP), which is a variable introduced in our case based on the ABC theory; (5) resource advantage (RA), which is also a variable introduced in our case based on the ABC theory. This empirical study is the first to combine the TPB with the ABC theory and to consider BPRB as an outcome variable to adapt the context of driving business owners’ involvement behavior in promoting RBs. A novel integrated model will be presented in the next section consisting of these five constructs, where GP is further treated as a reflective-formative second-order construct (supply-side policy, demand-side policy, and regulatory policy), and the other variables of RA, CP, APRB, and BPRB are all first-order constructs.
Our research objectives were threefold using partial least squares–structural equation modeling (PLS-SEM): (1) to identify what the core influencing factors of BPRB are; (2) to explore to what extent RA, GP, and CP play a role in influencing BPRB; and (3) to investigate whether APRB plays a role as a mediating variable on the links from either RA or GP to BPRB and which indirect effect is stronger. This study contributed to the mechanism of business owners’ engagement behavior in promoting RBs and has implications for future research in that it extends the TPB by identifying its key antecedents of RA and GP, thus providing a reference for economic development in relation to the context of promoting RBs in China and worldwide.
For clarity and easy reading,
Table 1 shows the abbreviations that we use in this paper. However, these abbreviations are also defined in the text.
5. Discussion of Findings
Based on the survey data from two Chinese tourism regions under developing stages of RBs, including the Wudang Mountains in Hubei Province and Wuyi Mountains in Fujian Province, the business owners’ engagement behavior for promoting RBs was investigated, and the interplay among RA, GP, CP, APRB, and BPRB explored by performing PLS-SEM empirically. The results verified and supported all the proposed research hypotheses in the proposed conceptual model. The discussion regarding the empirical analysis results was made as follows.
(1) The influence of RA on APRB/BPRB, and the causal relationship of RA and BPRB through the mediator of APRB, were verified. It is intuitively reasonable that firms are more willing to participate in promoting RBs by exploiting regional resources, especially those with unique regional advantages. This finding complemented what was found by Li et al. [
26] when investigating RBs of agricultural industries, where it was mentioned that “the existence of resource endowment promotes not only the government’s guidance and support for the development of characteristic agricultural industries but also the industry association’s supervision of regional brands of characteristic agricultural products, thus playing a strong role of promotion”. According to our analysis results, RA can also positively affect the attitude and further induce the behavior of business owners, in addition to its promotion from the government and industry association sides, for promoting RBs. Very recently, Xu and Zhao [
5] found that cultural RA could also help build the consumers’ loyalty and hence promote RB’s development by embedding culture (a kind of RA) into RB products. As a result, from extant research findings, protecting the RA is of paramount importance for the sustainable development of RBs, which was also discussed by Wang [
10].
(2) In addition to the importance of RA, the influences of GP on APRB/BPRB, and the causal relationship of GP and BPRB through APRB, were verified. This study recognized that GP is one of the greatest influence factors on BPRB based on the analysis result with PLS regression, which is in line with Zhang et al. [
28]. However, a slight difference here is that the dependent variable in our study was BPRB, while the dependent variable was decision-making engagement behavior. Furthermore, the RBs of the manufacturing industry were mainly discussed (Zhang et al. [
28]), while in our work, different industries, including agriculture, processing, and service industries, were all taken into account when evaluating the influence of GP more comprehensively. Contrary to our conclusion, Zhao and Sun [
41] found that CP (path coefficient 0.34) played a greater role than GP (path coefficient 0.27) in predicting behavior in relation to its participation in RBs. The reason for this discrepancy might be caused by the different development stages of RBs, which is emphasized here in that our study investigates the effect of GP on RB’s promotion behavior.
(3) As for how CP is concerned, it plays a positive influence on BPRB, which reflects how CP is also a key driver of BPRB and needs to be paid attention to. Unlike GP and RA, CP ranked third place in affecting BPRB based on our empirical analysis. Margarisová et al. [
91] found that for the efficient use of regional products and demand support, it is necessary to define a regional product from a customer perspective. As Xu and Zhao [
5] also revealed that the embeddedness of cultural elements within RB products has a positive effect on the consumers’ loyalty, which can accordingly promote the performance of RBs. Only by those business owners who can engage in BPRB, including perceiving pressure from constantly satisfying fast-changing consumer needs and cultivating their behavior loyalty, can RBs and their associated products become more successful and promoted. Due to an increasingly competitive market, it is always important to meet consumers’ needs by providing products with good quality and improving their level of service by business owners to promote RBs. This is true for other related fields, such as Kim et al. [
92], who emphasized that fashion brands are struggling to distinguish themselves from increasingly apathetic consumers. However, the case for business owners managing RBs is more complicated since GP and RA are more influential; they should be simultaneously in consideration with CP when making decisions or strategies that promote the performance of RBs.
(4) This finding verifies the underlying impact mechanism of GP and RA on BPRB through the mediator of APRB. The mediating effect of attitude can also be identified in other fields, such as green product purchase, where attitudes can mediate the relationship between either “environmental concern” (Maichum et al. [
31]; Paul et al. [
30]) or “environmental knowledge” (Maichum et al. [
31]) and “purchase intention”. Other past studies have corroborated that both GP and RA are primary predictors of behavior; however, this was unable to identify the effect of APRB and neglected its mediating role. This study has clearly revealed the internal mechanism of the nexus between RA/GP and BRPB. Furthermore, the mediation effects differed in magnitude, and few studies have recognized this difference between RA/GP and BRPB. In fact, it was found that the indirect effect of APRB (VAF = 59.23%) on the relationship between GP and BPRB was stronger than that (VAF = 30.52%) on the relationship between RA and BPRB. As such, this study validates the importance of APRB and opens the black box by revealing the mediating effect of APRB on the link between GP and BPRB, as well as between RA and BPRB, providing a pioneering reference for future research.
7. Research Conclusions
Regional branding is important in promoting rural regions with their unique natural and cultural heritage. However, the success of RBs highly depends on regional resources, government managers, business owners, and consumers. The present study is among one of the first attempts to examine the roles of RA, GP, CP, and APRB when influencing the novel outcome variable of BPRB, which directly determines the performance of RBs during their promotion and development stages. The proposed research model was empirically tested through survey data taken from business owners in the Wudang Mountains and Wuyi Mountains of China. Our results verify that GP, taking the forms of SP, DP, or RP, has a positive influence on BPRB and is the most important factor affecting BPRB. It reflects the significance of strengthening GP in practice for promoting RBs. In addition, RA has a positive influence on BPRB and ranks in second place, indicating the importance of exploiting RA for driving BPRB. As for CP, it plays a positive influence on BPRB and ranks in third place. It reflects that CP is also a key driver for BPRB, which needs to be paid attention to. Finally, APRB plays a partially mediating role between RA and BPRB, as well as between GP and BPRB, where the indirect effect through the path (GP→APRB→BPRB) is stronger. The study offers important theoretical and practical implications for promoting RBs.