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Addressing the unique challenge facing emerging-market firms (EMFs) of branding and marketing in their foreign subsidiaries, the purpose of this paper is to evaluate the…
Addressing the unique challenge facing emerging-market firms (EMFs) of branding and marketing in their foreign subsidiaries, the purpose of this paper is to evaluate the foreign subsidiary’s corporate visual identity (CVI) transitions during the post-acquisition period.
Data on 330 cross-border acquisitions from five emerging markets, namely, Brazil, Russia, India, China and South Africa (BRICS) are used. The cross-sectional multivariate analyses are used to test the hypotheses.
Utilizing a sample of worldwide acquisitions conducted by EMFs originated from BRICS, this study establishes that various cross-national distances do not consistently cause the targets to take on the parent’s CVI. While economic distance and formal institutional distance increase the likelihood of an acquired subsidiary’s CVI change, cultural distance decreases the likelihood of CVI change.
Lacking international experience and shaped by national differences between the host and home markets, EMFs often grant foreign subsidiaries substantial autonomy to respond to diverse stakeholder demands in subsidiary branding. Contrary to extant literature, the findings show that some distances are more pertinent to CVI transformation in the subsidiaries than others in the context of the EMFs.
This research shows that the formal institutional distance and economic distance will increase the likelihood of CVI changes in the subsidiaries, whereas, the cultural distance requiring soft skills like the cultural adaptability from the EMFs will decrease the CVI change possibility. The findings presented in the paper have significant implications for future research and strategic application.
This paper aims to investigate if perceived cultural distance (PCD) negatively affects service quality and customer satisfaction through customers’ social judgements of…
This paper aims to investigate if perceived cultural distance (PCD) negatively affects service quality and customer satisfaction through customers’ social judgements of the service providers’ warmth and competence in intercultural service encounters (ICSE), and if this negative effect can be mitigated through customer participation (CP).
A 2 × 2 between-subjects experimental design with an online consumer panel was conducted using a series of intercultural service encounter scenarios (in the weight loss service context) to manipulate CP (high vs low) and pictures of service providers to induce PCD (high vs low).
As hypothesized, in the context of ICSE, PCD negatively impacts customers’ social judgements of the service providers’ warmth and competence, which in turn influence service quality and customer satisfaction. However, the negative impact of PCD is alleviated when the level of CP is high.
Using a single service context (weight loss services) may restrict the generalizability of findings. Future research may explore other service contexts.
To improve customers’ experience, managers in service firms with multicultural customers may create more engagement opportunities by designing the service delivery process in ways in which more CP and involvement is allowed.
This research is among the first to highlight the importance of consumers’ social judgements about culturally dissimilar service providers, which at baseline come with disadvantages but that can be altered through marketing actions (e.g. enhanced CP).
We view emerging-market multinational corporations (EMNCs) as agents for global isomorphism. EMNCs seek to enter developed markets not only to expand their business…
We view emerging-market multinational corporations (EMNCs) as agents for global isomorphism. EMNCs seek to enter developed markets not only to expand their business operations but also to acquire advanced knowledge to enhance their core competencies. In entering these markets, EMNCs are subject to coercive, normative and cognitive pressures as they seek legitimacy. Once these firms gain legitimacy in advanced markets through the adoption of local business practices, they transfer these approaches to their headquarters in developing markets, establishing best practices in their home markets. Further, EMNCs may engage in efforts aimed at changing the institutional environment in the developing market to facilitate the transfer of learned practices from the developed market. Thus, we propose that these best practices lead to global isomorphism, but also note instances where symbolic adoption of developed market practices may slow the isomorphic process.
Jagdish N. Bhagwati is professor of economics and law at Columbia University and one of the most prolific scholars on globalization. He has a BA in economics from Cambridge and a PhD in economics from the Massachusetts Institute of Technology. He has served as an external advisor to the director general of the World Trade Organization, as a special policy advisor on globalization to the United Nations, and as an economics policy advisor to the director general of the General Agreement on Tariffs and Trade. Before moving to Columbia University he was professor at the Massachusetts Institute of Technology. Professor Bhagwati currently serves on the Academic Advisory Board of Human Rights Watch (Asia) and on the board of scholars of the Centre for Civil Society. He is senior fellow of the Council on Foreign Relations.