Rebranding after international acquisitions: challenges of legitimation in emerging and developed countries

Abstract

PurposeThis study describes how a multinational enterprise (MNE) gains acceptance after rebranding acquired brands from different countries among its internal and external stakeholders and identifies factors that influence this process.Design/methodology/approachThe study employed a single case-study approach, including 18 semi-structured in-depth interviews with employees of a firm involved in the rebranding process in six countries. The countries are Sweden, Germany, the United States, Brazil, Colombia and Mexico.FindingsThe findings reveal how the MNE integrated brands it acquired in different international markets into one overarching corporate brand. The study shows that in emerging countries, external legitimation (external implementation process, country profiles and customer buy-in) constitutes the most significant challenge. By contrast, in developed countries, internal legitimation (employee buy-in and internal implementation process) is more challenging.Research limitations/implicationsThe study contributes to and extends the rebranding literature by using a legitimation lens to analyze the rebranding process. This lens shows how internal and external stakeholders are both crucial to successful rebranding. The study provides a comprehensive perspective of the process, identifies challenging factors and differentiates between their importance in emerging and developed countries.Originality/valueTo address the dearth of research on how firms legitimize a new brand in different national contexts, the study compares the rebranding process in multiple countries and discusses the factors influencing the rebranding process.