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How Identity Can Influence One’s Business Performance

Identity is formed during life as an individual faces challenges or learns from new experiences. It influences all aspects of a person’s life.

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Personal identity can be a defining factor for business goals and objectives and tie it back to a broader society. Larger-than-life figures led many successful enterprises with a lot of passion and unique identity. Apple, Microsoft, Chanel – all of these brands are examples of companies led and inspired by a person’s unique self. Identity can tell much about an individual’s business decisions, which would be considered a part of identity theory. The connection stretches as far as to even influence a company’s hiring practices (Vallas & Cummins, 2015). For example, the personal identity of an entrepreneur determines their goals in life, priorities, and views on the things they consider important (Ackerman, 1984). This means that different people will inadvertently influence a business’s overall direction.

Identity also influences a person’s sense of morality, what they find acceptable and unacceptable. Moral considerations can severely influence a business’s goals, as the questions of morality arise daily on corporate grounds (Besio & Pronzini, 2013). Furthermore, a person’s identity is decided by and representative of a person’s social status. Members of group identities and those aligned socially with particular causes will likely support them in their business ventures. Identity theory can also be used to surmise that a person’s identity and brand identity become partially aligned during a course of work for a company (Buil et al., 2016).

This means that a business’s actions and decisions would also affect someone’s personal identity (Zampetakis et al., 2016). Such considerations as gender and race, for example, often inform business decisions of people (Hechavarría et al., 2016). People often strive to remain in groups that define them better, which leads to another effect identity can have on business goals (Abratt & Mingione, 2017). The aims of a company will be changed in accordance with the desire to keep group identity as part of a person’s being, focusing on efforts such as long-term preservation and improvement.

Reference List

Abratt, R. and Mingione, M., (2017) ‘Corporate identity, strategy and change’. Journal of Brand Management, 24(2), pp. 129–139.

Ackerman, L.D., (1984) ‘The psychology of corporation: How identity influences business.’ Journal of Business Strategy, 5(1), pp. 56–65.

Besio, C. and Pronzini, A., (2013) ‘Morality, ethics, and values outside and inside organizations: An example of the discourse on climate change.’ Journal of Business Ethics, 119(3), pp. 287–300.

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Buil, I., Catalán, S. and Martínez, E., (2016) ‘The importance of corporate brand identity in business management: An application to the UK banking sector.’ BRQ Business Research Quarterly, 19(1), pp. 3–12.

Hechavarría, D.M. et al., (2016) ‘Taking care of business: The impact of culture and gender on entrepreneurs’ blended value creation goals.’ Small Business Economics, 48(1), pp. 225–257.

Vallas, S.P. and Cummins, E.R., (2015) ‘Personal branding and identity norms in the popular business press: Enterprise culture in an age of precarity.’ Organization Studies, 36(3), pp. 293–319.

Zampetakis, L.A. et al., (2016) ‘Sex differences in entrepreneurs’ business growth intentions: An identity approach.’ Journal of Innovation and Entrepreneurship, 5(1).

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