Global brand market‐entry strategy to manage corporate reputation
| Pages | 177-187 |
| DOI | https://doi.org/10.1108/10610420910957807 |
| Published date | 29 May 2009 |
| Date | 29 May 2009 |
| Author | Maktoba Omar,Robert L. Williams,David Lingelbach |
| Subject Matter | Marketing |
Global brand market-entry strategy to manage
corporate reputation
Maktoba Omar
School of Marketing and Tourism, Napier University, Edinburgh, UK, and
Robert L. Williams Jr and David Lingelbach
School of Business and Leadership, Stevenson University, Owings Mills, Maryland, USA
Abstract
Purpose – This paper aims to present a case for the practical management of corporate reputation, in relation to two groups of concepts:
communication, identity, and trust; and communication, identity, and image.
Design/methodology/approach – A review of the current knowledge of corporate reputation, personality, identity,and image leads to development
of a strategy framework to enhance/protect corporate reputation. A case study involving a corporate logo introduced into a developed market by an
emerging multinational corporation (EMNC) is presented.
Findings – The paper identifies that credibility and trust are significant elements which must be managed and communicated to maintain the firm’s
corporate image and reputation.
Originality/value – A conceptual model is presented illustrating a series of internal and external factors affecting communication and trust, which
influence the customer and assist in shaping corporate reputation. The case of the EMNC Chinese corporation Haier to introduce its brand into a
developed market may enlighten others pursuing this path.
Keywords Brand image, Multinational companies, Trust, Communication
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Introduction
The resource-based view within the strategy literature has
argued that sustainable competitive advantage is created
primarily from intangible capabilities, notably innovation,
organisational architecture, strategic assets, and reputation
(Kay, 1995). These capabilities serve as the foundations for
the direct sources of competitive advantage: cost advantages
arising from privileged access to critical assets and proprietary
technology; customer captivity via habit formation, high
switching costs, and high substitute search costs; economies
of scale; and other factors, such as government protection or
superior access to information (Greenwald and Kahn, 2005).
Of those capabilities underlying competitive advantage,
reputation plays a central role in certain types of consumer
buying decisions. These decisions involve products that
cannot be inspected in advance or are only consumed once.
Pension plans, funeral services, and, more prosaically,
consumer durables (such as cars or washing machines) are
examples of such buying decisions (Kay, 1995). However, the
creation of reputation depends on a firm’s organisational
architecture, which also plays a central role in creating and
maintaining innovation. While reputation is a difficult concept
to measure, managers frequently assume a positive
relationship between business performance and corporate
reputation. The literature avers that from a customer’s
perspective, a healthy reputation may act as a risk suppressor,
(Fombrun and Rindova, 1998). Early research on corporate
reputation started with corporate image, corporate identity,
and personality. Between the 1950s and the 1970s the focus
was primarily on the image that external stakeholders held of
a firm or store (Caruana and Chircop, 2000; Martineau,
1958). During the 1970s and early 1980s strategy moved to
centre stage and corporate identity and corporate personality
become salient. The focus has shifted to corporate reputation
in the late 1980s (e.g. Fombrun and Shanley, 1990).
Corporate reputation has been gaining notice in the last few
years as an important asset of the firm (Black and Carnes,
2000). Academicians in corporate strategies have begun to
recognise the fact that corporate reputation provides firms
with competitive advantages (Fombrun, 1996). The better
the organisation’s quality, the more it will become popular
with its customers to continue using similar services of the
organisation for projects related to its experiences (Hebson,
1989; Connor et al., 1997). In many cases, prospective
customers are less inclined to work with new organisations
with no track record, particularly for large-scale projects,
because they fear negative consequences that may have an
adverse effect on their businesses (Hebson, 1989).
The objective of this paper is to review the literature in
relation to corporate reputation, its importance, and its
relation to other concepts; display a framework and
measurement approach; and finish with recommendations
and research agenda. This paper will use Haier Corporation
as a case study.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
18/3 (2009) 177–187
qEmerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610420910957807]
177
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