Do global brands contribute to the economy of their country of origin? A dynamic spatial approach

Abstract

Purpose Brand positioning based on the brand’s country of origin is at the centre of attention in international marketing. It is evident that global brands constitute critical intangible assets for businesses and places. However, it is not clear how they contribute to national economies. This paper aims to discuss the significance of brands as contributing to the value of their companies but also helping to leverage national economies. Although global brands can be produced and purchased in multiple countries, their influence on the economy of the country where their owner’s seat is located can be more meaningful than in other economies included in the “global factory”. Design/methodology/approach Based on 500 Brandirectory, the Most Valuable Global Brands 2011-2015 rankings powered by Brand Finance, the authors observed a spatial-economic autocorrelation which exemplifies the potential interdependency between gross domestic product (GDP) and brand value. This relationship has become a starting point for designing a spatial regression model. Findings The findings support the hypothesis that assumptive spatial dependencies have a significant influence on the examined relationship of brand value and GDP. Originality/value The presented study is the first to examine the potential interdependence between brand values and GDP of the countries of origin using a dynamic spatial approach.

Corporate social responsibility practices incomes and outcomes: Stakeholders' pressure, culture, employee commitment, corporate reputation, and brand performance. A Polish–German cross‐country study

“…most valuable asset. It leverages the power of a company and local society and also economies and countries related to global brands (Kucharska, Flisikowski, & Confente, 2018). Although some of these factors were under scrutiny earlier, the current study has been the first to present a complete structure of all incomes and outcomes.…”

“…Reputation is the expected long‐term outcome of CSR practice and links employees (Hur, Moon, & Lee, ), who are a company's most valuable resource, with the brand, which is a company's most valuable asset. It leverages the power of a company and local society and also economies and countries related to global brands (Kucharska, Flisikowski, & Confente, ). Although some of these factors were under scrutiny earlier, the current study has been the first to present a complete structure of all incomes and outcomes.…”

Modelling It Brand Values Supplied by Consultancy Service Companies: Empirical Evidence for Differences

“…Nonetheless, no previous study has evidenced this empirically with the valuations made by prestigious international consultancy companies. Some research works have employed one of the three rankings (Basgoze et al, 2016;Johansson et al, 2012;Kucharska et al, 2018;Ratnatunga & Ewing, 2009) for different purposes, but it is impossible to compare them. There are three exceptions (Alcaide et al, 2019;Bagna et al, 2017;Janoskova & Krizanova, 2017).…”

“…Brand Finance has published its Top 500 ranking since 2007. These rankings are used by authors (Basgoze et al, 2016;De Oliveira et al, 2018;Kucharska et al, 2018;Kim, 2019;Zahari et al, 2020) as a basis to build their models, but the Interbrand ranking is that most widely used by researchers (Agus & Salas, 2017;Johansson et al, 2012;Ratnatunga & Ewing, 2009). Basgoze et al (2016) analysed the effects of brand value announcements on stock returns of Turkish firms during the 2010-2014 period by the event study methodology, and using Brand Finance Turkey's 100 ranking list as a data source.…”

“…They concluded that companies earned abnormal positive returns 7 months after announcements. Kucharska et al (2018) employed the Most Valuable Global Brands 2011-2015 rankings powered by Brand Finance to reveal that global brands contribute to national economies measured by gross domestic product (GDP). In the same year, Flisikowski and Kucharska (2018) extended this study by confirming the relation between brand value and GDP per capita.…”