Relationship between country brand and internationalization: a literature review

Abstract

Purpose The purpose of this paper is to explain a possible relationship between the country brand and internationalization topics, searching in the literature the possible connections between them. Design/methodology/approach An integrative literature review of the past 15 years of research (2003–2017) was acquired using the well-known databases Web of Science and Scopus. Findings Studies linking country brand and internationalization are new, often quantitative, descriptive and focused on emerging markets. In terms of content, it was shown first that a country brand, when well-managed, is not only essential to attract foreign direct investment into the country, but it can also help the outflows of investments. Referring specifically to outflows of foreign investment, internationalization affects the country brand, generating positive attitudes toward the brand in international markets. However, it is also affected by the country brand because the country image influences the entry modes of business and the country of origin affects the performance of multinationals abroad. Research limitations/implications With the strengths and deficiencies of a body of literature exposed in this paper, a better understanding of the topic through synthesis can be provided. Practical implications Findings show that internationalization can influence country brand and country image. The internationalization process might positively affect the attitude toward a place brand. In terms of country image, when a company rebranding is entering international markets, it can integrate the brand of its products with the country brand and its image, generating positive effects in relation to brand in the new market. However, this relationship is not clear and should be explored by new studies. Originality/value This paper contributes both to the literature through an overview of the relationship between the two topics and a research agenda for future studies; and to governments and companies by providing information that enables them to become more competitive in the international market.