IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v30y2021i6s0969593121000743.html
   My bibliography  Save this article

Developing brand identities for international new ventures under uncertainty: Decision-making logics and psychic distance

Author

Listed:
  • Kusi, Samuel Yaw
  • Gabrielsson, Peter
  • Kontkanen, Minnie

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.

Suggested Citation

  • Kusi, Samuel Yaw & Gabrielsson, Peter & Kontkanen, Minnie, 2021. "Developing brand identities for international new ventures under uncertainty: Decision-making logics and psychic distance," International Business Review, Elsevier, vol. 30(6).
  • Handle: RePEc:eee:iburev:v:30:y:2021:i:6:s0969593121000743
    DOI: 10.1016/j.ibusrev.2021.101867
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593121000743
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ibusrev.2021.101867?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Moon-Yong Kim & Sangkil Moon, 2021. "The effects of cultural distance on online brand popularity," Journal of Brand Management, Palgrave Macmillan, vol. 28(3), pages 302-324, May.
    2. Jan-Erik Vahlne & Jan Johanson, 2020. "The Uppsala model: Networks and micro-foundations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 4-10, February.
    3. Oded Shenkar, 2001. "Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 519-535, September.
    4. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    5. Katrin M. Smolka & Ingrid Verheul & Katrin Burmeister–Lamp & Pursey P.M.A.R. Heugens, 2018. "Get it Together! Synergistic Effects of Causal and Effectual Decision–Making Logics on Venture Performance," Entrepreneurship Theory and Practice, , vol. 42(4), pages 571-604, July.
    6. Merz, Michael A. & Zarantonello, Lia & Grappi, Silvia, 2018. "How valuable are your customers in the brand value co-creation process? The development of a Customer Co-Creation Value (CCCV) scale," Journal of Business Research, Elsevier, vol. 82(C), pages 79-89.
    7. Benjamin M. Oviatt & Patricia P. McDougall, 2005. "Defining International Entrepreneurship and Modeling the Speed of Internationalization," Entrepreneurship Theory and Practice, , vol. 29(5), pages 537-553, September.
    8. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.
    9. Lianxi Zhou & Bradley R Barnes & Yuan Lu, 2010. "Entrepreneurial proclivity, capability upgrading and performance advantage of newness among international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(5), pages 882-905, June.
    10. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    11. Alexander McKelvie & Gaylen N. Chandler & Dawn R. DeTienne & Anette Johansson, 2020. "The measurement of effectuation: highlighting research tensions and opportunities for the future," Small Business Economics, Springer, vol. 54(3), pages 689-720, March.
    12. Jody Evans & Felix T Mavondo, 2002. "Psychic Distance and Organizational Performance: An Empirical Examination of International Retailing Operations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 515-532, September.
    13. Mika Gabrielsson, 2005. "Branding Strategies of Born Globals," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 199-222, September.
    14. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    15. Geuens, Maggie & Weijters, Bert & De Wulf, Kristof, 2009. "A new measure of brand personality," International Journal of Research in Marketing, Elsevier, vol. 26(2), pages 97-107.
    16. Kornum, Niels & Gyrd-Jones, Richard & Al Zagir, Nadia & Brandis, Kristine Anthoni, 2017. "Interplay between intended brand identity and identities in a Nike related brand community: Co-existing synergies and tensions in a nested system," Journal of Business Research, Elsevier, vol. 70(C), pages 432-440.
    17. Kevin Lane Keller, 2016. "Reflections on customer-based brand equity: perspectives, progress, and priorities," AMS Review, Springer;Academy of Marketing Science, vol. 6(1), pages 1-16, June.
    18. Henry Mintzberg, 1978. "Patterns in Strategy Formation," Management Science, INFORMS, vol. 24(9), pages 934-948, May.
    19. Roger Schweizer & Jan-Erik Vahlne & Jan Johanson, 2010. "Internationalization as an entrepreneurial process," Journal of International Entrepreneurship, Springer, vol. 8(4), pages 343-370, December.
    20. Chandler, Gaylen N. & DeTienne, Dawn R. & McKelvie, Alexander & Mumford, Troy V., 2011. "Causation and effectuation processes: A validation study," Journal of Business Venturing, Elsevier, vol. 26(3), pages 375-390, May.
    21. da Silveira, Catherine & Lages, Carmen & Simões, Cláudia, 2013. "Reconceptualizing brand identity in a dynamic environment," Journal of Business Research, Elsevier, vol. 66(1), pages 28-36.
    22. Fraccastoro, Sara & Gabrielsson, Mika & Chetty, Sylvie, 2021. "Social Media Firm Specific Advantages as Enablers of Network Embeddedness of International Entrepreneurial Ventures," Journal of World Business, Elsevier, vol. 56(3).
    23. Jonathan Levie & Benyamin B. Lichtenstein, 2010. "A Terminal Assessment of Stages Theory: Introducing a Dynamic States Approach to Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(2), pages 317-350, March.
    24. Efrat, Kalanit & Asseraf, Yoel, 2019. "A shift in perspective? The role of emotional branding in shaping born globals’ performance," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    25. Alex Rialp & Josep Rialp & David Urbano & Yancy Vaillant, 2005. "The Born-Global Phenomenon: A Comparative Case Study Research," Journal of International Entrepreneurship, Springer, vol. 3(2), pages 133-171, June.
    26. Christian Homburg & Danijel Jozić & Christina Kuehnl, 2017. "Customer experience management: toward implementing an evolving marketing concept," Journal of the Academy of Marketing Science, Springer, vol. 45(3), pages 377-401, May.
    27. Hongxin Zhao & Yadong Luo & Taewon Suh, 2004. "Transaction cost determinants and ownership-based entry mode choice: a meta-analytical review," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(6), pages 524-544, November.
    28. Muzychenko, Olga & Liesch, Peter W., 2015. "International opportunity identification in the internationalisation of the firm," Journal of World Business, Elsevier, vol. 50(4), pages 704-717.
    29. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    30. Niina Nummela & Sami Saarenketo & Päivi Jokela & Sharon Loane, 2014. "Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies," Management International Review, Springer, vol. 54(4), pages 527-550, August.
    31. Colleen M. Harmeling & Jordan W. Moffett & Mark J. Arnold & Brad D. Carlson, 2017. "Toward a theory of customer engagement marketing," Journal of the Academy of Marketing Science, Springer, vol. 45(3), pages 312-335, May.
    32. Jean-Noël Kapferer & Audrey Azoulay, 2003. "Do brand personality scales really measure brand personality?," Post-Print hal-00781544, HAL.
    33. Fournier, Susan, 1998. "Consumers and Their Brands: Developing Relationship Theory in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(4), pages 343-373, March.
    34. Davis, Blakley C. & Hmieleski, Keith M. & Webb, Justin W. & Coombs, Joseph E., 2017. "Funders' positive affective reactions to entrepreneurs' crowdfunding pitches: The influence of perceived product creativity and entrepreneurial passion," Journal of Business Venturing, Elsevier, vol. 32(1), pages 90-106.
    35. Knight, Gary A. & Liesch, Peter W., 2016. "Internationalization: From incremental to born global," Journal of World Business, Elsevier, vol. 51(1), pages 93-102.
    36. Acedo, Francisco J. & Jones, Marian V., 2007. "Speed of internationalization and entrepreneurial cognition: Insights and a comparison between international new ventures, exporters and domestic firms," Journal of World Business, Elsevier, vol. 42(3), pages 236-252, September.
    37. Peter Witt & Verena Rode, 2005. "Corporate Brand Building In Start-Ups," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 273-294.
    38. Fangfang Li & Jorma Larimo & Leonidas C. Leonidou, 2021. "Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda," Journal of the Academy of Marketing Science, Springer, vol. 49(1), pages 51-70, January.
    39. Shaker A Zahra, 2005. "A theory of international new ventures: a decade of research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 20-28, January.
    40. Ojala, Arto, 2015. "Geographic, cultural, and psychic distance to foreign markets in the context of small and new ventures," International Business Review, Elsevier, vol. 24(5), pages 825-835.
    41. Adrian Hauser & Fabian Eggers & Stefan Güldenberg, 2020. "Strategic decision-making in SMEs: effectuation, causation, and the absence of strategy," Small Business Economics, Springer, vol. 54(3), pages 775-790, March.
    42. Shi, Lei & Miles, Angela, 2020. "Non-effectual, non-customer effectual, or customer-effectual: A conceptual exploration of the applicability of the effectuation logic in startup brand identity construction," Journal of Business Research, Elsevier, vol. 113(C), pages 168-179.
    43. Michael Gibbert & Winfried Ruigrok & Barbara Wicki, 2008. "What passes as a rigorous case study?," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1465-1474, December.
    44. John T. Perry & Gaylen N. Chandler & Gergana Markova, 2012. "Entrepreneurial Effectuation: A Review and Suggestions for Future Research," Entrepreneurship Theory and Practice, , vol. 36(4), pages 837-861, July.
    45. Janell D Townsend & Sengun Yeniyurt & Mehmet Berk Talay, 2009. "Getting to global: An evolutionary perspective of brand expansion in international markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(4), pages 539-558, May.
    46. Benjamin M Oviatt & Patricia P McDougall, 2005. "The internationalization of entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 2-8, January.
    47. Saras Sarasvathy & K. Kumar & Jeffrey G. York & Suresh Bhagavatula, 2014. "An Effectual Approach to International Entrepreneurship: Overlaps, Challenges, and Provocative Possibilities," Entrepreneurship Theory and Practice, , vol. 38(1), pages 71-93, January.
    48. Tobias Frese & Ingmar Geiger & Florian Dost, 2020. "An empirical investigation of determinants of effectual and causal decision logics in online and high-tech start-up firms," Small Business Economics, Springer, vol. 54(3), pages 641-664, March.
    49. Benjamin M Oviatt & Patricia Phillips McDougall, 1994. "Toward a Theory of International New ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 45-64, March.
    50. Brodie, Roderick J. & Ilic, Ana & Juric, Biljana & Hollebeek, Linda, 2013. "Consumer engagement in a virtual brand community: An exploratory analysis," Journal of Business Research, Elsevier, vol. 66(1), pages 105-114.
    51. Dubois, Anna & Gadde, Lars-Erik, 2002. "Systematic combining: an abductive approach to case research," Journal of Business Research, Elsevier, vol. 55(7), pages 553-560, July.
    52. Wiltbank, Robert & Read, Stuart & Dew, Nicholas & Sarasvathy, Saras D., 2009. "Prediction and control under uncertainty: Outcomes in angel investing," Journal of Business Venturing, Elsevier, vol. 24(2), pages 116-133, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kusi, Samuel Yaw & Gabrielsson, Peter & Baumgarth, Carsten, 2022. "How classical and entrepreneurial brand management increases the performance of internationalising SMEs?," Journal of World Business, Elsevier, vol. 57(5).
    2. Betty Feng, Jing & Liu, Steven Y.H. & Anne Liu, Leigh, 2023. "Cognitive antecedents of EMNEs’ dynamic capabilities: A case study of global identity at Lenovo," Journal of Business Research, Elsevier, vol. 154(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vissak, Tiia & Francioni, Barbara & Freeman, Susan, 2020. "Foreign market entries, exits and re-entries: The role of knowledge, network relationships and decision-making logic," International Business Review, Elsevier, vol. 29(1).
    2. Donbesuur, Francis & Zahoor, Nadia & Boso, Nathaniel, 2022. "International network formation, home market institutional support and post-entry performance of international new ventures," International Business Review, Elsevier, vol. 31(3).
    3. Oliveira, Luis & Johanson, Martin, 2021. "Trust and firm internationalization: Dark-side effects on internationalization speed and how to alleviate them," Journal of Business Research, Elsevier, vol. 133(C), pages 1-12.
    4. Schweizer, Roger & Vahlne, Jan-Erik, 2022. "Non-linear internationalization and the Uppsala model – On the importance of individuals," Journal of Business Research, Elsevier, vol. 140(C), pages 583-592.
    5. Knight, Gary A. & Liesch, Peter W., 2016. "Internationalization: From incremental to born global," Journal of World Business, Elsevier, vol. 51(1), pages 93-102.
    6. Kusi, Samuel Yaw & Gabrielsson, Peter & Baumgarth, Carsten, 2022. "How classical and entrepreneurial brand management increases the performance of internationalising SMEs?," Journal of World Business, Elsevier, vol. 57(5).
    7. Magnani, Giovanna & Zucchella, Antonella, 2021. "Portfolios of learning in entrepreneurial internationalisation," Journal of International Management, Elsevier, vol. 27(2).
    8. Fletcher, Margaret & Harris, Simon & Richey, Robert Glenn, 2021. "Retrospective and prospective learning: Accelerating the internationalization process," Journal of World Business, Elsevier, vol. 56(3).
    9. Jiang, Guohua & Kotabe, Masaaki & Zhang, Feng & Hao, Andy W. & Paul, Justin & Wang, Cheng Lu, 2020. "The determinants and performance of early internationalizing firms: A literature review and research agenda," International Business Review, Elsevier, vol. 29(4).
    10. D’Angelo, Alfredo & Buck, Trevor, 2019. "The earliness of exporting and creeping sclerosis? The moderating effects of firm age, size and centralization," International Business Review, Elsevier, vol. 28(3), pages 428-437.
    11. Zhou, Lianxi & Wu, Aiqi, 2014. "Earliness of internationalization and performance outcomes: Exploring the moderating effects of venture age and international commitment," Journal of World Business, Elsevier, vol. 49(1), pages 132-142.
    12. Evers, Natasha & Andersson, Svante, 2021. "Predictive and effectual decision-making in high-tech international new ventures – A matter of sequential ambidexterity," International Business Review, Elsevier, vol. 30(1).
    13. Bruno F. Abrantes, 2020. "Are Neoclassic Internationalization Models Enduring? A Case-Review of the Uppsala Paradigm," SAGE Open, , vol. 10(2), pages 21582440209, June.
    14. Riviere, Monica & Suder, Gabriele, 2016. "Perspectives on strategic internationalization: Developing capabilities for renewal," International Business Review, Elsevier, vol. 25(4), pages 847-858.
    15. Zhou, Lianxi & Xu, Shou-Ren & Xu, Hui & Barnes, Bradley R., 2020. "Unleashing the dynamics of product-market ambidexterity in the pursuit of international opportunities: Insights from emerging market firms," International Business Review, Elsevier, vol. 29(6).
    16. Galkina, Tamara & Yang, Man, 2020. "Bringing Nordic Slush to Asia: Entrepreneurial internationalization of an NGO as a social movement," International Business Review, Elsevier, vol. 29(6).
    17. Magnani, Giovanna & Zucchella, Antonella & Floriani, Dinorá Eliete, 2018. "The logic behind foreign market selection: Objective distance dimensions vs. strategic objectives and psychic distance," International Business Review, Elsevier, vol. 27(1), pages 1-20.
    18. Bai, Wensong & Holmström-Lind, Christine & Johanson, Martin, 2018. "Leveraging networks, capabilities and opportunities for international success: A study on returnee entrepreneurial ventures," Scandinavian Journal of Management, Elsevier, vol. 34(1), pages 51-62.
    19. Masoud Karami & Ben Wooliscroft & Lisa McNeill, 2020. "Effectuation and internationalisation: a review and agenda for future research," Small Business Economics, Springer, vol. 55(3), pages 777-811, October.
    20. Child, John & Hsieh, Linda H.Y., 2014. "Decision mode, information and network attachment in the internationalization of SMEs: A configurational and contingency analysis," Journal of World Business, Elsevier, vol. 49(4), pages 598-610.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:30:y:2021:i:6:s0969593121000743. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.