Corporate brand as a contract with stakeholders – theology or pragmatism?

Abstract

Purpose

The purpose of this paper is to explore the nature of brand contract in B2B from two perspectives: the theological and pragmatic.

Design/methodology/approach

A review of the branding literature challenges the dominant notion of the brand covenant as a firm driven, unilateral promise, referred to as a theological contract. The study adds to this the pragmatic perspective of a social contract, as deployed by the social sciences and IMP literatures. A tentative framework of a dialectical contract is developed through drawing on three cases of Chinese suppliers for the focal firm, IKEA.

Findings

First, both types of contract are identified in the firm’s practices. Second, the specific goals and roles of managers and suppliers in each contract are defined. The theological contract is used by managers to strengthen suppliers’ beliefs in the company’s vision and mission, while the pragmatic one is employed by both parties for the implementation of the brand’s norms and brand equity. Third, a new framework for and the definition of a dual, dialectical brand contract in B2B are developed.

Practical implications

Managers are advised to mediate between the theological pledge of their brand and its pragmatic implementation.

Originality/value

The paper challenges the dominant theological discourse in extant branding literature and puts forward a dialectical approach as a new proposition.

Citation

Tarnovskaya, V. (2015), "Corporate brand as a contract with stakeholders – theology or pragmatism?", Marketing Intelligence & Planning, Vol. 33 No. 6, pp. 865-886. https://doi.org/10.1108/MIP-06-2014-0111