The Mediating Effect of Design Innovation between Brand Distinctiveness and Brand Performance: Evidence from Furniture Manufacturing Firms in Malaysia

The paper examines the relationships among brand distinctiveness, design innovation and brand performance of furniture manufacturers and the mediating effect of design innovation between brand distinctiveness and brand performance. Questionnaires were distributed to more than 500 manufacturers and 204 questionnaires were analyzed. A 49-item questionnaire which consists of brand distinctiveness, design innovation and brand performance were carried out to investigate the relations among these variables. Statistical evidence was found to confirm only functional innovation as one of the dimensions of design innovation that fully mediates the relationship between brand distinctiveness and brand performance. The paper researches the role of innovation-in a twofold perspective: innovation in product design innovation on brand performance, and as a mediator between brand distinctiveness and brand performance.