Grounded Theory on the Drivers of Digital Branding in Startups

Document Type : Original Article

Authors

1 Associate Professor, Department of Business Management, Faculty of Management and Accounting,, Hazrat-e Masoumeh University, Qom, Iran.

2 Associate Prof., Department of Business Management, Faculty of Management and Accounting, Hazrat-e Masoumeh University, I. R. Iran

3 MSc. Business Management, Faculty of Management and Accounting, Hazrat-e Masoumeh University, I. R. Iran

10.48308/jbmp.2025.240555.1689

Abstract

Purpose: The advancement of new technologies has compelled startups to explore innovative tools to acquire and sustain competitive advantages. Among these tools and strategies, digital branding has emerged as a critical approach.

Methodology: This study employs a mixed-methods approach, applied in purpose, and descriptive-analytical in nature. In the qualitative phase, the participant community included university professors and digital branding experts. Data was collected through theoretical sampling and 20 interviews until theoretical saturation was achieved, then analyzed using the Glaserian grounded theory method. In the quantitative phase, active professionals and experts in startup businesses with at least three years of experience were studied. Data was gathered using a researcher-developed questionnaire with a sample of 142 participants and analyzed through structural equation modeling (SEM) using AMOS software. Finally, the conceptual framework of the research was qualitatively developed and quantitatively validated.

Findings: This study identified, through a three-stage coding process, 296 concepts, 50 basic categories, and 15 sub-categories, ultimately distilling them into five core themes: content purposefulness (creating audience-centric content for attraction and retention), knowledge flow management (systematic data analysis and application), multi-value creation (delivering diverse and sustainable value), comprehensive brand commercialization (strategic approaches for financial success and market penetration), and transformational digital infrastructure (building foundational digital frameworks). These structured findings systematically capture key dimensions of effective digital branding.

Conclusion: The results indicate that digital branding in startups requires focus on key drivers, including contextual antecedents and transformational enablers. These drivers—endogenous and exogenous in nature—foster knowledge flows and ultimately strengthen digital branding efforts.

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