Abstract
Cross-border merger and acquisition (CBM&A) is a dominant and sustainable antagonistic strategy, but a relevant concern like a country has inadequately been emphasized over the five decades of acquisition studies. Therefore, this article attempts to examine the impact of country brand equity (CBE) on corporate brand architecture (CBA) in post-CBM&A. It first originates a hypothetical model esteeming Resource-Based View (RBV) and Industrial Organization (IO) theory following the Structure-Conduct-Performance (SCP) paradigm. Then, it tests the model conducting a web survey on 124 acquiring corporates from 29 countries that accomplished CBM&A transactions between 1990 and 2014. The empirical findings clarify that the market aspect, such as the acquirer’s more substantial country brand equity, indirectly leads to the high degree of CBA standardization in the host market through prioritized intangible and strategic resources—corporate reputation and corporate brand management system. Individually, the acquirer’s corporate reputation cumulatively yields a high degree of CBA standardization with corporate brand power, which has only a direct effect. On the other hand, the corporate brand management system leads to a high degree of CBA standardization cumulatively with corporate reputation. It is deemed that the research findings as a whole reveal a framework for the application of country brand equity and corporate brand architecture in post-CBM&A.
Highlights
Cross-border merger and acquisition (CBM&A) is a central approach in Foreign Direct Investment (FDI) [1] as the estimated value was USD 1.2 trillion in 2019, according to Reuters
There is an insufficient reflection on corporate brand architecture, even if corporate branding is necessary for value creation in post-acquisition [5,7,8]
This article illustrates the manuscript as follows: it first establishes a conceptual model based on how a country brand equity (CBE) influences the acquirer’s corporate brand architecture (CBA) strategy along with corporate band management system (BMS), corporate reputation, and corporate brand power
Summary
Cross-border merger and acquisition (CBM&A) is a central approach in Foreign Direct Investment (FDI) [1] as the estimated value was USD 1.2 trillion in 2019, according to Reuters. Aaker [10], Basu [11], Richard Ettenson [12], Hsiang Ming and Ching Chi [13] claimed that brand name, logo, and symbolic value are reliable indicators for acquisition success In this way, a brand ought to be admitted performing the central part of a corporate strategy. This article illustrates the manuscript as follows: it first establishes a conceptual model based on how a country brand equity (CBE) influences the acquirer’s CBA strategy along with corporate band management system (BMS), corporate reputation, and corporate brand power It explains the research methodology and empirical analysis.
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