From brand identity to brand equity: a multilevel analysis of the organization–employee bidirectional effects in upscale hotels

Purpose This study aims to examine the mechanism of how hotel executive brand identity influences physical facility quality, customer-based brand equity (CBBE) and employee-based brand equity (EBBE). Design/methodology/approach The study introduces a multilevel model and collects 925 executive and 1,978 employee responses from 62 upscale hotels in China. Findings Executive brand identity positively affects employee brand internalization, which leads to positive EBBE. Meanwhile, executive brand identity positively influences the physical facility quality, which leads to positive CBBE. Originality/value This study considers the tangible (physical facilities) and intangible (employees) elements of hotel services to comprehensively investigate the brand equity formation. By applying multilevel structural equation modeling, the study examines the bidirectional relationship between organizations and employees in the brand value transformation process.