Country-of-Origin Relationship (CoOR): A Relational Approach to Understanding the Association Between a Multinational Company in Crisis and Its Country of Origin

Abstract

ABSTRACT Extant research has examined country-of-origin (CoO) from a marketing perspective, examining the effects of consumers’ evaluations of a country’s image on attitudes toward products from the country. To advance research on CoO, there are calls to approach CoO from the perspectives of other disciplines. From the perspective of public relations, this study conceptualizes country-of-origin relationship (CoOR) and examines it as individuals’ evaluations of a country’s pursuit of a mutually beneficial relationship with their home countries. Using South Korea as an example, survey data collected from a representative sample of 514 Australian citizens found a positive association between CoOR and evaluations of the relational efforts made by multinational companies from South Korea. In response to a hypothetical event involving a South Korean company in a crisis in Australia, those who evaluated South Korean companies positively were less likely to subscribe to conspiracy theories related to the company involved, attribute responsibility to it or engage in negative megaphoning. The findings of this study suggest that CoOR, which consists of interactional bilateralism, power mutuality, relational trust, relational satisfaction and relational commitment, is critical in reducing the “foreignness” of a multinational company.