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, Ghom. Iran

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

Abstract

Objectives: 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.
Method: This study adopts a mixed-methods approach, applied in purpose and descriptive-analytical in nature. In the qualitative phase, the participant group included university professors and digital branding experts. Data were collected through theoretical sampling and 20 semi-structured interviews until theoretical saturation was achieved and 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 surveyed. Data were gathered using a researcher-developed questionnaire from a sample of 142 participants and analyzed using structural equation modeling (SEM) with AMOS software. Ultimately, the conceptual framework of the study was qualitatively developed and quantitatively validated.
Findings: Through a three-stage coding process, the study identified 296 concepts, 50 basic categories, and 15 subcategories, which were distilled 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 comprehensively capture the key dimensions of effective digital branding.
Conclusion: The results indicate that successful digital branding in startups depends on focusing on key drivers, including contextual antecedents and transformational enablers. These drivers—both endogenous and exogenous—facilitate knowledge flows and ultimately strengthen digital branding capabilities and competitive positioning.

Keywords

Main Subjects


Aalipour Herisi, M., Yadollahi Farsi, J., & Zali, M. R. (2021). Designing the pattern of Brandpreneurship Process: Case Study of the Panter Brand in the Stationery Industry. Journal of Business Management Perspective, 20(48), 13-42. (In Persian). https://doi.org/10.48308/jbmp.20.48.13
Ageeva, O., Karp, M., & Sidorov, A. (2020, March). The application of digital technologies in financial reporting and auditing. In Institute of Scientific Communications Conference (pp. 1526-1534). Cham: Springer International Publishing.
Akeel, A., & Gubhaju, M. (2020). Digital Marketing and its effects on Start-up business [Master Programme in Business Administration (MBA): Business Management Master Thesis in Business Administration]. University of Gavle.
Akpoviroro, K. S., Amos, A. O., Oladipo, A. O., & Adewale, A. G. (2020). Product branding and Consumer loyalty in telecommunication industry. Economics and Culture, 17(1), 94-103. https://doi.org/10.2478/jec-2020-0009
Aly, H. (2020). Digital transformation, development and productivity in developing countries: is artificial intelligence a curse or a blessing? Review of Economics and Political Science, 7(4), 238-256.  https://doi.org/10.1108/REPS-11-2019-0145
Aree, M. Y., & Wang, R. T.-C. (2020). The Importance of Digital Branding for New Businesses in the 21st Century.
Aree, M. Y., & Wang, R. T. C. (2020). The Importance of Digital Branding for New Businesses in the 21st Century (No. 304190). Thammasat University. Faculty of Journalism and Mass Communication.
Bahcecik, Y. S., Akay, S. S., & Akdemir, A. (2019). A review of digital brand positioning strategies of Internet entrepreneurship in the context of virtual organizations: Facebook, Instagram and YouTube samples. Procedia Computer Science, 158, 513-522.
Baker, T. H., & Judge, K. (2020). How to help small businesses survive COVID-19. Columbia Law and Economics Working Paper, 1(620), 1-12.
Balmer, J. M., & Podnar, K. (2021). Corporate brand orientation: Identity, internal images, and corporate identification matters. Journal of Business Research, 134, 729-737. https://doi.org/10.1016/j.jbusres.2021.06.016
Blank, S., & Dorf, B. (2020). The startup owner's manual: The step-by-step guide for building a great company. John Wiley & Sons.
Bonnin, G., & Alfonso, M. R. (2019). The narrative strategies of B2B technology brands. Journal of Business & Industrial Marketing, 34(7), 1448-1458. https://doi.org/10.1108/JBIM-03-2019-0112
Bortolini, R. F., Nogueira Cortimiglia, M., Danilevicz, A. d. M. F., & Ghezzi, A. (2021). Lean Startup: a comprehensive historical review. Management Decision, 59(8), 1765-1783. https://doi.org/10.1108/MD-07-2017-0663
Campos, E. J. (2022). Lindo y querido: Nationalism, Latin American Modernity, and the Contested Terrain of the 1968 Mexico City Olympic Games. University of Minnesota ProQuest Dissertations & Theses. 29213690.
Casidy, R., Leckie, C., Nyadzayo, M. W., & Johnson, L. W. (2022). Customer brand engagement and co-production: an examination of key boundary conditions in the sharing economy. European Journal of Marketing, 56(10), 2594-2621. https://doi.org/10.1108/EJM-10-2021-0803
Choe, J. Y., Kim, J. J., & Hwang, J. (2021). Perceived risks from drone food delivery services before and after COVID-19. International Journal of Contemporary Hospitality Management, 33(4), 1276-1296https://doi.org/10.1108/IJCHM-08-2020-0839
Davies, C. (2020). A quick guide to quantitative research in the social sciences. University of Wales Trinity Saint David.
Denga, E. M., & Rakshit, S. (2023). Digital marketing and the sustainable performance of small and medium enterprises. In Advancing SMEs toward e-commerce policies for sustainability (pp. 213-234). IGI Global.
Denga, E. M., Vajjhala, N. R., & Rakshit, S. (2022). Relationship selling as a strategic weapon for sustainable performance. In Sales Management for Improved Organizational Competitiveness and Performance (pp. 78-101). IGI Global.
Denga, E. M., Vajjhala, N. R. R., & Asortse, S. (2023). Digital branding in the digital era. In The role of brands in an era of over-information (pp. 171-197). IGI Global.
Diaz, E., Esteban, Á., Carranza Vallejo, R., & Martin-Consuegra Navarro, D. (2022). Digital tools and smart technologies in marketing: a thematic evolution. International Marketing Review, 39(5), 1122-1150.
Fatkhutdinov, V. (2020). The Pension Fund of Ukraine: Rethinking risk management during the creation. Ukrainian Policymaker, 6(6), 15-23.
Fauziah, Z., Hayadi, B. H., Meria, L., & Hasanah, A. U. (2022). Start-up digital business: Knowing business opportunities and tips for beginners. Startupreneur Business Digital (SABDA Journal), 1(1), 96-103.
Ghareh Daghi, Z., Askari, A., & Asayesh, F. (1404). Designing a Digital Branding Model in the Insurance Service Industry with a Focus on Artificial Intelligence Technology. Journal of Intelligent Marketing Management, 6(2), 230-245. (In Persian). https://doi.org/Jabm.3.2.15564.351256.32578545
Guenzi, P., & Habel, J. (2020). Mastering the digital transformation of sales. California Management Review, 62(4), 57-85.
Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), 1159-1197.
He, H., & Harris, L. (2020). The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116, 176-182.
Herawati, A. F., Yusuf, M., Cakranegara, P. A., Sampe, F., & Haryono, A. (2024). Social media marketing in the promotion of incubator business programs. Journal Darma Agung, 30(2), 623-633.
Hidayah, D. N., & Hidayat, R. S. (2024). Pengaruh brand image, co–branding, dan celebrity endorsement terhadap keputusan pembelian:(Studi pada Konsumen Haus! Graha Raya di Tangerang Selatan). Jurnal Ilmiah Manajemen dan Akuntansi, 1(5), 108-119.
Hota, S. L., Mohanty, N., Kumar, A., & Panda, K. (2024). Achieving Sustainability in Newly Founded Start-Up Businesses: Navigating Challenges and Gaining Insights. Recoletos Multidisciplinary Research Journal, 12(1), 1-7.
Isibor, N. J., Attipoe, V., Oyeyipo, I., Ayodeji, D. C., Apiyo, B., Alonge, E., & Onwuzulike, O. (2025). Analyzing Successful Content Marketing Strategies That Enhance Online Engagement and Sales for Digital Brands. International Journal of Advanced Multidisciplinary Research and Studies, 5(2), 842-851.
Izumi, C., & Hariguna, T. (2024). In-Depth Analysis of Web3 Job Market: Insights from Blockchain and Cryptocurrency Employment Landscape. International Journal Research on Metaverese, 1(1), 40-58.
Jacobson, J., Gruzd, A., & Hernández-García, Á. (2020). Social media marketing: Who is watching the watchers? Journal of Retailing and Consumer Services, 53, 101774.
Jankovec, T. (2019). Cyfrovi tehnologii’pidvyshhennja vartosti brendiv [Digital technologies to increase the value of brands]. Bulletin of KNETU, 4(126), 85-100.
Kedi, W. E., Ejimuda, C., Idemudia, C., & Ijomah, T. I. (2024). Machine learning software for optimizing SME social media marketing campaigns. Computer Science & IT Research Journal, 5(7), 1634-1647.
Kurode, T., Kurode, A. V., & Moitra, K. (2016). A study of critical challenges in startup management. Available at SSRN 3348534.
Martynjuk, O. (2022). Trendy digital-marketyngu v umovah kryzy [Digital marketing trends in crisis conditions]. Nacional’nyj universytet vodnogo gospodarstva ta pryrodokorystuvannja–National University of Water and Environmental Engineering, 2(98), 147-157.
McAlister, L., & Sinha, S. (2021). A customer portfolio management model that relates company’s marketing to its long-term survival. Journal of the Academy of Marketing Science, 49(3), 584-600.
Medvedieva, К. (2023). Digital branding in the marketing strategy of enterprises. Scientia fructuosa, 149(3), 33-43.
Mohammadnezhad Ali Zamini, A., Ahmadi danyali, A., & Ahmadi Sharif, M. (1403). Designing a Digital Branding Pattern in Healthy Agricultural Products. Journal of value creating in Business Management, 4(2), 139-168. (In Persian). https://doi.org/10.22034/jvcbm.2023.408992.1153
Nikam, R. U., Lahoti, Y., & Ray, S. (2023). A study of need and challenges of human resource management in start-up companies. Mathematical Statistician and Engineering Applications, 72(1), 314–320-314–320.
Parvaresh Mohseny, m., Nayebzadeh, S., Davodiroknabadi, A., & hamdi, k. (1401). Identification and analysis of drivers affecting the future of digital branding in Iran's carpet industry. Journal of Textile Science and Technology, 11(3), 92-115. (In Persian).
Pathania, A., & Tanwar, S. (2024). Decoding startup failures in Indian startups: Insights from interpretive structural modeling and cross-impact matrix multiplication applied to classification. Journal of Entrepreneurship, Management and Innovation, 20(2), 93-116.
Paxton, A. (2020). The Belmont Report in the age of big data: Ethics at the intersection of psychological science and data science.
Piard, E. (2024). Brand management in cultural institution: Study case – Guggenheim Museum Bilbao (Bachelor’s thesis). Metropolia University of Applied Sciences. https://urn.fi/URN:NBN:fi:amk-2024052113837
Plompen, B. E., & Wynants, M. (2021). Exploring the entrepreneur’s mind: A spectrum of corporate branding mind‑sets found in start‑ups (Master’s thesis, Lund University, Master’s Programme in International Marketing and Brand Management).
Rodinova, N., Pylypchuk, N., Domashenko, S., Havrylyuk, I., & Androsovych, A. (2024). Ukrainian economy in the era of digital branding: risks and opportunities. Futurity Economics&Law, 4(4), 4-24.
Saedi, A., hoseini, m., & javanmard, m. (2023). Explanation and analysis of brand anthropomorphic cognitive mentality in start-up businesses. Journal of Business Management Perspective, 22(55), 61-81. (In Persian). https://doi.org/10.48308/jbmp.2024.234644.1580
Sakas, D. P., Reklitis, D. P., Terzi, M. C., & Glaveli, N. (2023). Growth of digital brand name through customer satisfaction with big data analytics in the hospitality sector after the COVID-19 crisis. International Journal of Information Management Data Insights, 3(2), 100190.
Salamzadeh, A., & Kawamorita Kesim, H. (2015). Startup companies: Life cycle and challenges. 4th International conference on employment, education and entrepreneurship (EEE), Belgrade, Serbia,
Sari, N. P., Artha, B., & Hadi, A. S. (2023). Brand Loyalty: a Literature Review. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(1), 66-75.
Sharma, A., Sharma, B. K., Rajput, S., Mehra, A., & Gulati, U. (2023). Digital branding adoption by specialty eatery start-ups in the post-pandemic environment in India. Cogent Business & Management, 10(1), 2196043.
Sikki, N., Aripin, Z., & Fitrianti, N. G. (2024). Business innovation and critical success factors in digital transformation and challenging times: An econometric analysis of startup viability and success. KRIEZ ACADEMY: Journal of development and community service, 1(2), 1-15.
Steenkamp, J.-B. E. (2020). Global brand building and management in the digital age. Journal of International Marketing, 28(1), 13-27.
Swaminathan, V., Sorescu, A., Steenkamp, J.-B. E., O’Guinn, T. C. G., & Schmitt, B. (2020). Branding in a hyperconnected world: Refocusing theories and rethinking boundaries. Journal of Marketing, 84(2), 24-46.
Szántó, P. (2023). Systematic literature and modeling review of Personal Branding. Marketing & Menedzsment, 57(1), 69-78.
Tofighi, M., Grohmann, B., & Bodur, H. O. (2020). Ethical attribute and brand concept congruity enhances brand evaluations. European Journal of Marketing, 54(1), 79-108.
Tom Dieck, M. C., Han, D.-I. D., & Rauschnabel, P. A. (2024). Augmented reality marketing in hospitality and tourism: a guide for researchers and managers. International Journal of Contemporary Hospitality Management, 36(13), 97-117.
Tulong, M. P., Tataung, J. C., Manobi, N. C. G., Rumbajan, S. M. S., & Nongko, L. A. (2024). The Influence of E-Commerce Technology Implementation on Business Development in the Digital Era. Jurnal Syntax Admiration, 5(11), 5092-5098https://doi.org/10.46799/jsa.v5i11.1772
Uchechukwu, E. S., Amechi, A. F., Okoye, C. C., & Okeke, N. M. (2023). Youth unemployment and security challenges in Anambra State, Nigeria. Sch J Arts Humanit Soc Sci, 4, 81-91. 10.36347/sjahss.2023.v11i04.005
Uka, M. (2020).  Start-ups through the Lens of Marketing: The importance of Branding for Start-ups and Brand Awareness, Thesis. Rochester Institute of Technology. Accessed from https://repository.rit.edu/theses/10499
Retno Utami, A., & Widiati, E. (2025). Efektivitas Digital Branding Melalui Platform E-Commerce Dalam Meningkatkan Penjualan Produk Lokal . IKRAITH-EKONOMIKA, 8(2), 294-303. Retrieved from https://journals.upi-yai.ac.id/index.php/IKRAITH-EKONOMIKA/article/view/4502
Wang, C., Chen, X., Yu, T., Liu, Y., & Jing, Y. (2024). Education reform and change driven by digital technology: a bibliometric study from a global perspective. Humanities and Social Sciences Communications, 11(1), 1-17.  https://doi.org/10.1057/s41599-024-02717-y
Widyanty, W., Oktasari, D. P., Sumaedi, S., & Damayanti, S. (2024). The business students' intention to establish a start-up company: the role of higher education-related factors. Higher Education, Skills and Work-Based Learning, 14(5), 938-957.  https://doi.org/10.1108/HESWBL-06-2023-0144
Zhao, Y., Zhou, R., Yu, Q., & Zhao, L. (2025). Revealing the contribution of mountain ecosystem services research to sustainable development goals: A systematic and grounded theory driven review. Journal of environmental management, 373, 123452. https://doi.org/10.1016/j.jenvman.2024.123452