How Can Multinational Brands Acquire Legitimacy in Developing Markets? A Case Study of Haier and TCL in Developing Markets

Abstract

How Can Multinational Brands Acquire Legitimacy in Developing Markets? A Case Study of Haier and TCL in Developing Markets Tao Wang, Wei Zhang, Nan Cui Abstract When multinational brands enter developing markets, they must address frequently large problems to gain legitimacy. To that end, from a dynamic and evolutionary perspective and based on legitimacy theory, we conduct an in-depth case study of two successful Chinese brands and their legitimation and development process in local markets and propose four brand legitimation strategies: element legitimation strategies, management legitimation strategies, output legitimation strategies and standard-setting legitimation strategies. And we propose a conceptual framework with a set of corresponding propositions that explain why brand legitimation strategies can help multinational brands gain legitimacy and which legitimation strategy is proper and appropriate in various development periods in host market. Furthermore, we contribute to the extant literature on how multinational brands can gradually gain legitimacy in the host market. Full Text: PDF DOI: 10.15640/jmm.v8n2a8