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Examining The Link Between Integrated Communication Management and Communication Effectiveness in Medium Sized Enterprises
Examining The Link Between Integrated Communication Management and Communication Effectiveness in Medium Sized Enterprises
Introduction
The strategic importance of systematically managing a company’s communication with its
stakeholders – those constituencies that contribute to the company’s wealth-creating
capacity and activities (Post, Preston and Sachs 2002, 19) – has been widely acknowledged
(e.g. Argenti and Forman 2002; Cornelissen 2004; Grunig, Grunig and Dozier 2002; Van
Riel and Fombrun 2007). One concept that has been particularly emphasised as enhancing
the effectiveness of communication is that of integrated (marketing) communications (e.g.
Bruhn 1992; Duncan and Everett 1993; Gronstedt 1996a; Luck and Moffatt 2009; Moriarty
1994; Proctor and Kitchen 2002; Schultz and Schultz 2003), which Schultz and Patti (2009,
75) have recently considered ‘one of the most influential marketing management
frameworks of our time’.
The concept started to gain traction and popularity in the 1990s as integrated
marketing communications (IMC) (Schultz, Tannenbaum and Lauterborn 1993). In a
number of conceptualisations, IMC soon evolved from a purely customer-centred concept
to one with a broader stakeholder orientation that took all stakeholders and communication
activities of a company into consideration (e.g. Duncan and Moriarty 1998). This led some
scholars to drop the word ‘marketing’ and to speak of integrated communications instead
(e.g. Bruhn 1992; Caywood 1997; Esch 2006; Gronstedt 1996b; Wightman 1999). Here,
we will use the term and enclose marketing in brackets before we present a comprehensive
definition and framework for integrated communication management (ICM). This
definition draws on perspectives from integrated (marketing) communications and
communication management (e.g. Grunig, Grunig and Dozier 2002).
The drivers of integrated (marketing) communications were – and still are – growing
globalisation and competition for global market share, development of digital technology,
emphasis on brands and branding, increasingly demanding stakeholders whose potential to
gain information and control over companies is growing (Schultz and Schultz 2003), and
rising expectations by management for communication performance and accountability
(Argenti 2006; Kitchen et al. 2004; Proctor and Kitchen 2002; Reid, Luxton and Mavondo
2005) since ‘ . . . companies are more interested than ever in understanding and measuring the
returns being obtained from marketing investments . . . ’ (Marketing Science Institute 2008).
An integrated approach to communication aims to meet more complex communication needs,
prevent, possible problems such as fragmented communication and contradictory messages
that would result in the loss of trust and reputational damage (Gronstedt 1996a; Schultz and
Kitchen 2004; Van Riel and Fombrun 2007) and – most importantly – provides competitive
advantages (Eagle and Kitchen 2000) and enhances productivity and business performance
(Cook 1997; Schultz and Schultz 2003; Schultz, Tannenbaum and Lauterborn 1993).
Research mainly cites empirical evidence for the effectiveness of integrated
(marketing) communications based on ‘soft’ psychological measures such as awareness,
brand memory or attitude (e.g. Esch 2006; Garretson and Burton 2005; Reid 2005). Few
studies have attempted to establish a relationship between integrated (marketing)
communications and business performance (Low 2000). Ewing (2009) concludes that
demonstrating the link between integrated (marketing) communications and business
performance has largely failed, and scholars call for more empirical assessments of the
processes of integrated (marketing) communications in relation to their performance in
order to advance the concept further (Duncan and Mulhern 2004; Kitchen et al. 2004; Luck
and Moffatt 2009; Reid 2005; Wang 1994). According to Ewing (2009, 104), the failure to
demonstrate the link between integrated (marketing) communications and business
performance ‘is arguably the biggest obstacle hindering IMC’s broader acceptance among
both pragmatic practitioners and sceptical scholars’.
The primary goal of the research presented here is to shed more light on the
relationship between various dimensions of what we will term ‘ICM’ and communication
effectiveness, thereby including ‘soft’ psychological measures as well as ‘hard’ business
performance measures. In preparation of the empirical study, we first unfold the central
perspectives and dimensions of integrated (marketing) communications and communi-
cation management to derive a comprehensive conceptual framework of ICM. On the
basis of this framework, we propose hypotheses that focus on the relationship between
various dimensions of ICM and communication effectiveness. The hypotheses were tested
on a sample of 642 mainly medium-sized enterprises in Switzerland. We deliberately
focused our research on this ‘forgotten sector’, a terminology coined by Moss, Ashford
and Shani (2003) for small and medium-sized enterprises (SMEs) in communication
research. Since SMEs are considered the backbone of most economies and crucial for
fostering competitiveness and employment (European Commission 2005), the secondary
goal of the work we present here is to remedy the dearth of research on SMEs.
Journal of Marketing Communications 337
Communication effectiveness
It is the super ordinate goal of integrated (marketing) communications and communication
management to contribute to the value of the company. Value creation has been conceived
as a multi-step process comprising the output, outcome and outflow levels of
communication effectiveness (e.g. Argenti 2006; Rolke and Zerfaß 2010; Watson and
Noble 2005). Communication scholars and professionals have been struggling for decades
to present a valid measure for the outflow level, demonstrating that communication
management contributes to the strategic and financial performance of the company, which
is on economic figures such as revenue, relative market success in the industry or return on
investment (ROI). Much better developed are measures of communication effectiveness
on the lower levels of value creation. On the outcome level, measures include indices of
brand awareness and image (e.g. Keller 2003), reputation (e.g. Fombrun, Gardberg and
Sever 2000), customer satisfaction (e.g. Anderson and Sullivan 1993; Fornell, Rust and
Dekimpe 2010) or employee satisfaction (e.g. Cranny, Smith and Stone 1992). Ways to
Journal of Marketing Communications 339
gauge the output of communication management include indices of media output (Mathes
and Zerfaß 2010) or website statistics. In the multi-step process of value creation, output
and outcome are necessary prerequisites to bringing about outflow; thus, demonstrated
effectiveness on these lower levels, particularly on the outcome level, is used as an
indication of the impact of the communication on the total corporate value.
A framework of ICM
In this article, we take a comprehensive approach to integrated (marketing)
communications by conflating previously advanced concepts into the concept of ICM,
which we define as a management process of analysis, planning, organising, executing
and evaluating the communication of a company with its varied external and internal
stakeholders, based on communication objectives that are aligned with corporate strategy
and applying instruments that are aligned in terms of content, form and timing. It is the
super ordinate goal of ICM to contribute to the total corporate value by considering
stakeholder needs and wants and building stakeholder-company relationships. Figure 1
depicts the ICM framework. It includes the role of leadership support for realising ICM
and differentiates the different dimensions of integration – strategic, stakeholder, process
and executional integration – which contribute to generating communication
effectiveness.
In the following sections, we first introduce the objects of research (SMEs), and then
present the hypotheses, explain our methodology and outline the results generated by
means of a survey among companies in Switzerland.
Leadership support
Process
Analysis Planning Organisation Execution Evaluation
integration
Executional Alignment of communication
integration instruments
Effectiveness
Awareness image
Outcome satisfaction
Total corporate
Outflow
value
important to most economies and are said to be ‘an essential source of jobs, create
entrepreneurial spirit and innovation in the EU and are thus crucial for fostering
competitiveness and employment’ (European Commission 2005, 3). Against the backdrop
of such developments as the globalisation of business and increasing price and
performance pressure (Lombriser, Abplanalp and Wernigk 2007), professional
communication management can represent a key success factor and a potential driver
for competitive advantage (e.g. Kitchen et al. 2004), also in the case of smaller companies.
In one of the few studies on communication practices in this ‘forgotten sector’, Moss,
Ashford and Shani (2003) analysed the use and practice of public relations among SMEs,
mainly micro businesses, in the north-west of England. Evatt, Ruiz and Triplett (2005),
building on the ‘excellence study’ by Grunig and colleagues (e.g. Grunig, Grunig and
Dozier 2002), generated insights into the understanding and practice of communication in
small organisations in Texas (for-profit, not-for-profit, trade associations and government
agencies) with fewer than 20 employees, and Fam (2001) explored promotional techniques
used mainly by small-scale clothing and shoe retailers in New Zealand.
In the empirical research presented here, we focus on one segment of SMEs: medium-
sized enterprises employing between 50 and 249 people. We chose to focus on medium-
sized companies because we expect a higher level of formalisation in their
communication, a view that we derive from the findings of Evatt, Ruiz and Triplett
(2005). They observed that communication in SMEs becomes more formalised once the
organisation reaches approximately 20 employees; similarly, Moss, Ashford and Shani
(2003) found that only 16% of the micro businesses in their sample had a formal
communication function. In order to investigate the relationship between the
implementation of ICM and communication effectiveness, which represents our main
research objective, we consider a certain level of formalisation necessary.
Strategic integration
SMEs often have limited strategic planning capabilities. However, if ICM is to generate
value for the company as a whole, it has to contribute to fulfilling the corporate goals; this
requires that communication is closely aligned with the overall corporate strategy and the
corporate mission. The necessity of achieving strategic consistency has been emphasised
by various scholars in integrated (marketing) communications and communication
management (Argenti, Howell and Beck 2005; Grunig, Grunig and Dozier 2002; Holm
2006; Schultz and Schultz 2003; Van Riel and Fombrun 2007; Zerfaß 1996). We expect a
positive correlation between how strongly communication is aligned with the corporate
strategy and mission and the value it creates for the company as a whole (outflow).
H2: There is a positive correlation between the alignment of communication with
corporate strategy and mission and effectiveness measures (outflow).
Stakeholder integration
In order to manage communication and foster relationships with different stakeholders,
companies generally create different functions, above all marketing communications,
addressing the company’s customers and other stakeholders in the marketplace; public
relations, for fostering relationships with a much broader range of stakeholders, including
politicians, interested citizens, non-governmental organisations and journalists, but not
excluding stakeholders on the market; and employee communications, i.e. cultivating
communicative relationships with all of the company’s employees.2 Various proponents
of integrated (marketing) communications put customers at the centre of their
communication management models, arguing that customers are closest to the business
and, therefore, most important for generating total corporate value (e.g. Gronstedt 1996a;
Schultz and Schultz 2003). Thus, having a function in place that is charged with the tasks
of fostering communication and building relationships with customers should enhance
communication effectiveness, particularly customer satisfaction.
H3a: Having a function for marketing communications in place correlates positively
with effectiveness measures (outcome and outflow).
Although SMEs generally do not fulfil the news factor of prominence (e.g. Buckalew
1969) and are thus less likely than large corporations to gain the attention of the media and
the public, Dyer (1996) voices the criticism that SMEs concentrate their communication
too much on customers. This prevents them from being sufficiently responsive to their
environment and to the wider stakeholder groups they depend on (Dyer 1996; Fueglistaller
and Wick 1995; Grunig, Grunig and Dozier 2002).
A first step to foster relationships with a wider range of stakeholders is to appoint
someone or to create a function for dealing with stakeholders other than customers.
342 S.A. Einwiller and M. Boenigk
Usually, this function falls under public relations when it concerns external audiences and
under employee communications when it involves internal communication management.
Having installed the functions for addressing various stakeholders constitutes a first step
towards a greater environmental responsiveness which should positively affect
communication effectiveness. Therefore, we hypothesise that the more functions of
stakeholder management a company has established – even if managed by only one
person – the higher the effectiveness of the communication.
H3b: Having more functions for communication management installed correlates
positively with effectiveness measures (outcome and outflow).
Executional integration
Reasoning from a psychological perspective, Esch (2006) argues that the alignment of
communication instruments with respect to content, form/design and timing facilitates
stakeholder awareness and the development of a coherent image of the company or brand.
Keller (1987) showed that the alignment of advertising and package design had a positive
impact on advertising recall and brand evaluation. Also, integration by means of key
visuals has been shown to be more effective regarding brand memory than an unintegrated
form of advertising (Esch 2006). Furthermore, Garretson and Burton (2005) found
favourable effects on brand attribute recall and attitudes through an integrated use of
spokescharacters. We hypothesise:
H5a: The better the communication instruments are aligned in terms of content,
form/design and timing, the higher the communication effectiveness (outcome).
As executional integration is a complex process involving the combination of multiple
communication instruments and activities in different areas, integration should benefit
Journal of Marketing Communications 343
from systematic communication planning. We, therefore, expect that the existence of
written communication concepts will correlate positively with the alignment of
communication instruments.
H5b: There is a positive correlation between the existence of scripted communication
plans and the alignment of communication instruments in terms of content,
form/design and timing.
Empirical research
Sample and procedure
The hypotheses proposed above were tested by means of a comprehensive survey of 4056
SMEs with a focus on medium-sized enterprises based in German-speaking Switzerland.
The survey was conducted in the spring of 2006. Company addresses were obtained from a
Swiss address broker who was instructed to deliver the contact details of all for-profit
companies in German-speaking Switzerland that employed between 50 and 500 people.
The companies were contacted by postal mail and asked to participate in an online survey
on communication practices of SMEs in Switzerland. Of those contacted, 843 completed
the questionnaire (21% response rate) and 62 were excluded because they claimed more
than 500 employees in Switzerland. Of the remaining 781 companies, 31% said they
belonged to an international corporate group, and 139 of them stated that their organisation
employed more than 1000 people worldwide (these included names such as Henkel, Nokia
and Pfizer). These 139 organisations were excluded from the analyses because they cannot
be considered SMEs.
The remaining sample of 642 companies consisted of 503 medium-sized enterprises
(50–249 employees), 73 large companies (250–499 employees) and 66 small companies
(less than 50 employees). The data of the small and large companies were used for
comparative purposes. By comparing medium-sized organisations with both their smaller
and larger counterparts, we were able to generate a broader understanding on certain aspects.
Most of the companies in the sample were in the industrial goods (33%) or service
sector (37%); the rest were consumer goods companies (13%) or companies that stated
they were in another sector (16%). Comparing the valid sample with the population
344 S.A. Einwiller and M. Boenigk
provides evidence of sampling adequacy: in 2005, the last year of data collection before
our survey, 33% of the Swiss medium-sized enterprises were in the industrial goods sector,
40% in the service sector, 12% in the consumer goods and 15% in the retail sector (Federal
Statistical Office 2010). Furthermore, 59% of the participating companies said that they
have business contacts only, 25% market their products directly to consumers and 16%
claimed both corporate and consumer clients. The questionnaires were completed by
managers in communication, marketing or sales, or by the company’s CEO, general
manager or owner.
Operationalisation of variables
After indicating the demographic details of their company (e.g. size and sector),
respondents were asked to provide answers on the following aspects of ICM:3
Leadership support
Support by the company’s top management was gauged by having respondents indicate,
on a scale of 1 (not at all) to 4 (very much), whether ‘insufficient or lacking financial
resources’ and ‘lack of support for communication from top management’ caused
problems in their company’s communication. These two items were included in an
itemised list of potential problems in the company’s communication (see below). We
further assessed leadership support by asking respondents to rank, on a scale of 1 (not at
all) to 4 (very), how strongly top management valued each of the communication functions
(marketing communications, public relations and employee communications) to
contribute to the company’s overall success.
Strategic integration
Respondents answered on a scale of 1 (not at all) to 4 (strongly) whether their
communication was aligned with the corporate strategy and mission.
Executional integration
Alignment of instruments was assessed by means of a prompt asking respondents to judge,
on a scale of 1 (not at all) to 4 (very well), whether their company’s measures in marketing
communications, public relations and employee communications were aligned with regard
Journal of Marketing Communications 345
Communication effectiveness
The effectiveness measurement was twofold, assessing both outflow (economic factors)
and outcome (psychological factors). Economic factors were assessed on the basis of
respondents’ subjective replies to questions asking whether and how the results of ROI and
relative market success compared with those of other companies in the industry had
changed over the past 3 years. Respondents were given a scale of 1 (deteriorated
significantly) over 3 (stayed the same) to 5 (improved significantly) with which to rate
their opinion. Self-assessments are common in performance ratings of SMEs, where
objective performance measurements are difficult to obtain due to the general
unwillingness of private companies to disclose confidential information (e.g. Appiah-
Adu and Singh 1998; Berthon, Ewing and Napoli 2008). Furthermore, subjective
assessments were found to correlate strongly with objective performance measurements
(Dess, Lumpkin and Covin 1997; Dess and Robinson 1984). In the same way, respondents
indicated how their company’s image and the level of awareness among stakeholders, as
well as customer satisfaction and employee satisfaction, had changed over the past 3 years.
Results
Problem areas in communication management
We start our presentation of results by exploring the problems respondents perceive in
practising communication. Figure 2 depicts the results in percentages of agreement (top 2
scores ‘somewhat applies’ and ‘fully applies’) referring to the problem areas prompted.
346 S.A. Einwiller and M. Boenigk
Information overload 52
Deficient evaluation and controlling 46
Deficient conceptual foundation 38
Insufficient or lacking financial resources 34
Communicating complex content 34
No person with overall responsibility 34
No processes/rules for cooperation 31
No objectives 28
Diverging interests among departments 27
Lack of support from top management 23
Under-qualified staff in communication 21
0 10 20 30 40 50
N = 481–486 applies somewhat + verymuch in percent
Leadership support
We hypothesised that a lack of support by the company’s leadership and the lack of
financial resources are associated with impaired communication effectiveness. To test
these hypotheses, we ran non-parametric correlations between respondents’ perceived
problems concerning lacking support by top management and lacking financial resources
(for descriptive statistics, see Figure 2) and the different variables indicating
communication effectiveness (respondents’ assessments of how the various figures had
changed over the past 3 years).
Results (see Table 1) indicate that the smaller the problems with lack of support from
top management, the better the company’s improvement as measured by outcome (image,
customer satisfaction and employee satisfaction over the past 3 years) and outflow
(relative market success and ROI), confirming hypothesis 1a. Lack of financial resources
correlates only slightly with two outcome measures (image and employee satisfaction),
indicating only weak support for hypothesis 1b. Significant correlations with the outflow
measures are hardly surprising; they show that companies with good economic
performance allocate more resources to communication management than companies with
weaker performance.
The results indicating the relationship between the importance top management
ascribes to the communication functions for the company’s overall success and measures
Table 1. H1a, b, c: Correlations between leadership support and effectiveness of communication in medium-sized enterprises; Spearman’s Rho, (N).
Outcome Outflow
Customer Employee Relative market
Awareness Image satisfaction satisfaction success ROI
Lacking support from top management 20.14** (439) 2 0.20** (437) 2 0.17** (437) 20.19** (437) 20.17** (414) 20.12** (382)
Lacking/missing financial resources ns 2 0.10* (437) ns 20.13 (437) 20.20** (414) 20.23** (382)
Importance top mgmt. assigns to marketing com. 0.16** (443) 0.13** (441) 0.09* (441) ns 0.11* (417) ns
Importance top mgmt. assigns to PR 0.20** (444) 0.13** (442) ns ns ns ns
Importance top mgmt. assigns to employee com. 0.08* (444) 0.13** (442) 0.17** (442) 0.28** (442) ns ns
Notes: *p , 0.05, **p , 0.01 (one-tailed), ns ¼ not significant.
Journal of Marketing Communications
347
348 S.A. Einwiller and M. Boenigk
of effectiveness are interesting. Data show a weak but significant correlation between the
importance assigned to marketing communications and the company’s relative market
success. This is the only significant correlation between any measures of importance and
those of outflow. On the outcome level, the strongest correlations are those between the
importance accorded to public relations and the level of awareness, and between the
importance assigned to employee communications and customer and employee
satisfaction. This highlights the importance of solidly supported employee communi-
cations not only to employee satisfaction but also to customer satisfaction.
Strategic integration
Respondents declared how strongly their communication was aligned with the corporate
strategy and mission. Forty-four per cent of medium-sized companies claim to align their
communication strongly with the strategy of their company, and 40% state that
communication is aligned strongly with its mission. We hypothesised that the stronger the
alignment the more the value communication management can create for the company
(outflow). Table 2 shows support for this hypothesis.
There is a weak but significant correlation between relative market success and how
strongly communication is aligned with corporate strategy and mission; alignment with
the mission also correlates with ROI. Although not hypothesised, we also find significant
correlations between the alignment of communications with mission and strategy and the
entire outcome measures of communication effectiveness, correlations with awareness
and image being the strongest.
Table 3. H3a, b: Correlations between functions of communication management and communication effectiveness in medium-sized enterprises; Spearman’s
Rho, (N).
Outcome Outflow
S.A. Einwiller and M. Boenigk
Customer Employee
Awareness Image satisfaction satisfaction Relative market success ROI
Marketing communication established ns 0.09* (443) ns ns 0.15** (418) 0.10* (385)
(0 ¼ no, 1 ¼ yes)
Number of communication functions 0.18** (439) 0.14** (438) 0.13** (436) ns 0.10* (412) ns
(0– 3)
Notes: *p , 0.05, **p , 0.01 (one-tailed), ns ¼ not significant.
Journal of Marketing Communications 351
Table 4. Proportion of small, medium-sized and large companies that have written communication
plans.
Company size*
Small Medium Large
In writing: N ¼ 60 – 64 N ¼ 417– 449 N ¼ 58 – 63 df x2 p
CD guidelines 52 73 87 2 54.67 ,0.001
Overall communication 47 53 66 2 13.96 ,0.001
concept
Communication messages 38 46 67 2 29.27 ,0.001
Crisis communication 24 32 66 2 69.53 ,0.001
plan
Notes: Figures as %; *groups weighted for size.
Executional integration
Figure 3 depicts the results for importance as well as perceived performance of the
company’s alignment of instruments in terms of content, form/design and timing. The data
reveal that medium-sized enterprises consider the alignment of communication
instruments to be rather important. This is particularly the case for formal alignment
(CD). Alignment in content and timing is less important. The same pattern of results, just on
a lower level, can be found for the perceived performance of these integrated
communication aspects. While 44% of the respondents agree that their communication
instruments are very well aligned regarding form and design, less than 20% consider their
instruments very well aligned in terms of content (17%) and timing (16%). There are no
differences in the degree of alignment between small, medium-sized and large companies.
352
Table 5. H4: Correlations between scripting communication concepts and communication effectiveness in medium-sized enterprises; Spearman’s Rho, (N).
Outcome Outflow
S.A. Einwiller and M. Boenigk
In writing (0 ¼ no, 1 ¼ yes) Awareness Image Customer satisfaction Employee satisfaction Relative market success ROI
Overall communication concept 0.14** (430) 0.17** (428) 0.08* (428) 0.17** (429) 0.10* (410) 0.09* (377)
Communication messages 0.21** (414) 0.11* (411) ns 0.09* (412) 0.11* (391) 0.12* (362)
CD guidelines ns ns ns 2 .09* (418) ns ns
Crisis communication plan 0.14** (403) 0.11* (401) 0.19** (402) 0.21** (403) ns ns
Notes: *p , 0.05, **p , 0.01 (one-tailed), ns ¼ not significant.
Journal of Marketing Communications 353
80
68
70
60
48
50
44
In %
40
36
Alignment is
30 very important
19
20 Instruments are
16
very well aligned
10
0
Form/design Content Timing N = 448-463
Table 6. H5a: Correlations between alignment of instruments and communication effectiveness of medium-sized enterprises; Spearman’s Rho, (N).
S.A. Einwiller and M. Boenigk
Outcome Outflow
Awareness Image Customer satisfaction Employee satisfaction Relative market success ROI
Alignment (index: form, content, timing; 0.18* (439) 0.20* (437) 0.15* (436) 0.14* (436) ns ns
Cronbach’s alpha ¼ 0.77)
Notes: *p , 0.01 (one-tailed).
Journal of Marketing Communications 355
Table 8. H6: Correlations between evaluation of communication and stakeholder perceptions and
communication effectiveness (outcome) in medium-sized enterprises; Spearman’s Rho, (N).
Customer Employee
Awareness Image satisfaction satisfaction
Customer satisfaction survey 0.12* (201) 0.13* (199) 0.12* (201) ns
Employee satisfaction survey ns ns 0.16* (189) 0.15* (190)
Media clippings 0.19** (197) ns ns ns
Internet logfile analysis 0.14* (182) ns ns ns
Notes: *p , 0.05, **p , 0.01 (one-tailed), ns ¼ not significant.
employee satisfaction which reveals a significant correlation between the two measures
(Rho ¼ 0.46, p , 0.001). Finally, our data reveal significant correlations between
awareness and the frequency with which media clippings are collected and Internet
logfiles are analysed. There are no significant correlations between indicators of
effectiveness and any of the other measures of analysis and evaluation.
Discussion
The primary goal of the research presented here was to shed more light on the relationship
between communication effectiveness and various dimensions of ICM outlined in our
ICM framework. The empirical results generated from medium-sized enterprises in
Switzerland yield encouraging findings as to the role of systematic ICM for
communication effectiveness as measured by both ‘soft’ (outcome) and ‘hard’ (outflow)
factors, thereby helping to strengthen the role of communication management within the
company and towards top management.
Support for communication from top management is central, as our data reveal. The
attention and appreciation top management give to communication correlates significantly
with communication effectiveness, even more significantly than does the provision of
sufficient financial resources. We furthermore find a common effect: companies that
perform well economically have more generous communication budgets than those that
have faced struggles in past years. This shows that counter-cyclical spending is rarely
practised, despite recurring findings that counter-cyclical communication activities during
economic downturns can create value for the company (Frankenberger and Graham 2003;
Srinivasan, Rangaswamy and Lilien 2005).
Interestingly, leadership support and the importance top management assigns
to employee communications correlate rather strongly with employee satisfaction. This
suggests that an owner or CEO with an affinity for communication is more likely to
356 S.A. Einwiller and M. Boenigk
through the lens of those answering our survey questions, many of whom were responsible
for marketing, public relations or sales, we can conclude that having a defined
communication plan enhances the satisfaction of communication managers. Also, they
seem to feel better with a crisis communication plan in place than without. Concerning
crisis communication, there is a clear need for preparation for potential crises, since
only one-third of all medium-sized enterprises in our sample were equipped with a written
plan.
Acknowledgements
The reported research was supported by the Swiss Confederation’s Innovation Promotion Agency
(CTI), Infel and Swisscom. We would like to thank Norbert Winistörfer, Dominik Lehmann and
Christoph Hug for their contribution to this research project.
Notes
1. The European Commission (2005) defines SMEs as organisations employing fewer than 250
persons with either revenue of less than EUR 50 million or annual net income of less than EUR 43
million. SMEs are divided into three categories: micro (,10 employees), small (, 50 employees)
and medium-sized enterprises (,250 employees). According to the European Commission, 99%
of all companies in the EU are SMEs, and they employ a workforce of approximately 75 million.
In Switzerland, 99.7% of the approximately 300,000 companies have fewer than 250 employees,
and only 1064 companies are considered large. SMEs employ about three-quarter of
Switzerland’s workforce and produce more than 60% of its GDP (Federal Statistical Office
2008).
2. In this study, we concentrate on those three main functions of communication management:
marketing communications, public relations and employee communications. Investor or creditor
relations are not considered here.
3. This is a selection of those variables relevant for the hypotheses proposed in this paper.
Respondents furthermore provided answers about instruments used to communicate with their
stakeholders, about budget allocation and about their use of communication agencies.
Notes on contributors
Sabine A. Einwiller is a professor of corporate communication in the department of communication
at the Johannes Gutenberg-University Mainz, Colonel Kleinmann-Weg 2, 55128 Mainz, Germany,
email: einwiller@uni-mainz.de, phone: þ 49 6131 39 25938. Sabine A. Einwiller received her PhD
from the University of St. Gallen, Switzerland, where she headed the Centre of Corporate
Communication. Her research interests include corporate reputation and branding, the measurement
of communication effectiveness and crisis communication.
Michael Boenigk is a professor of communication and marketing at the Lucerne University of
Applied Sciences and Arts, School of Business, Zentralstrasse 9, 6002 Lucerne, Switzerland, email:
michael.boenigk@hslu.ch, phone: þ41 41 228 99 55. Michael Boenigk received his PhD from the
University of Basel, Switzerland, where he worked as research associate in the Department of
Marketing and Business Administration. His research focuses on integrated communication and
media management.
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