Analysing trademark and social media in the fashion industry: tools that impact performance and internationalization for SMEs

Abstract

Purpose – This research investigates the role that having a trademark and a social media presence play in the development of international activities as well as their influence on performance for small and medium-sized enterprises (SMEs) operating within the fashion sector of the United Kingdom and Ireland. Design/methodology/approach – Quantitative analysis was carried out by integrating information from several data sources. The hypotheses proposed in the authors’ research model are tested on a sample of 102 SMEs, applying bivariate analysis and variance-based structural equation modelling (partial least squares). Findings – Based on the authors’ empirical evidence, the fashion SMEs could improve their performance through two important marketing tools: registered trademark and social media. On the one hand, SMEs with a registered trademark are more present in the international markets, and it also implies higher performance. On the other hand, there is no significant relationship between SMEs with social media and a presence in international markets. Originality/value – The aim of this paper is to investigate the effect of trademark and social media participation on firms which varies depending on what managers of fashion-related SME companies want to prioritize. Hence, these two marketing tools could be useful for managers to decide on what resources to invest, to register a trademark or to be present in social media, subject to their firms' strategy and objectives.