Highlights

Abstract

Keywords

۱٫ Introduction

۲٫ Theoretical background

۳٫ Research methodology

۴٫ Cross-case analysis and proposition development

۵٫ Discussion and conclusion

Acknowledgements

References

Abstract

While many models describe efforts to build brand identity, none specifies the brand identity development for small firms facing uncertainty, such as rapidly internationalizing international new ventures. By examining four such case firms informed by interviews and archival data spanning five years, this study identifies three brand identity development states: unbranded, sporadically branded, and focused branded international new ventures. Brand values, brand personality, and brand relationships are critical brand identity dimensions that manifest in the three states. A related model and propositions help explicate how uncertainty owing to psychic distance moderates the impact of decision-making logics on brand identity development. We show how the role of decision-making logic affects the prominence given to different dimensions of brand identity in the developmental states. Moreover, we reveal the associated change and state mechanism allowing for the rapid advancement of brand identity states in international new ventures.

۱٫ Introduction

International new ventures (INVs), that is, firms seeking competitive advantage from the use of resources and sales in multiple countries from inception (Oviatt & McDougall, 1994, p. 49) have become increasingly common. These firms operate in an uncertain environment and face several liabilities, such as smallness, foreignness, and newness (Zahra, 2005). An option available to INVs to respond to these challenges is to develop a strong brand identity (Aaker, 1996; Abimbola & Kocak, 2007; Kapferer, 2012; Keller, 2013).

Although prior studies have identified the importance of brand identity for traditional, gradually internationalizing firms (e.g., Aaker, 1996; Christmann, Alexander, & Wood, 2016; Keller, 2013), there is limited understanding of brand identity development within rapidly internationalizing INVs. Oviatt and McDougall (1994, 2005) suggest internationalization is considered rapid when a firm expands into foreign markets immediately or soon after inception, which has often been operationalized in terms of foreign sales accounting for a certain proportion of total sales in a short period following the foundation of the firm (Knight & Cavusgil, 2004; Zhou, Barnes, & Lu, 2010). As the number of INVs has increased greatly in the last few decades and they have become a trend of internationalization (Knight & Liesch, 2016), exploring the brand identity development of this particular type of firm seems to have merit. As gradually internationalizing firms (see e.g., Johanson & Vahlne, 1977; 2009) differ from INV firms in terms of how they internationalize (see e.g., Acedo & Jones, 2007; Knight & Liesch, 2016), it is logical to assume that their approach to brand identity development will also differ.