Where You're From Matters: Born Global Firms Learn to Turn Origin Into a Selling Point

<p>Contribution: This paper advances the understanding of branding strategies in Born Global firms by exploring how the country of origin (COO) can be leveraged to mitigate the liability of foreignness (LoF). It contributes to the literature by (1) systematically reviewing empirical studies on the COO effect in the industrial B2B context and (2) differentiating between different dimensions of the COO, such as country of design (COD), assembly (COA), manufacture (COM), and category country image (CCI). The study provides a nuanced understanding of how COO impacts buyer perceptions, purchasing behavior, and brand equity.</p><p>Research Questions/Purpose: The study investigates the strategic role of the COO in branding decisions of Born Global firms. It seeks to determine whether COO can be used to overcome LoF and how industrial buyers respond to COO cues. The review also aims to identify gaps in the existing literature and propose directions for future research.</p><p>Methodology: A systematic literature review was conducted using Petticrew and Roberts’ seven-stage framework. The review included articles published between 1994 and 2022, selected from top-rated journals in marketing and international business.</p><p>Database/Information: The reviewed studies spanned eleven countries and used a variety of research methods, including surveys, interviews, and database analysis. The studies covered diverse industries such as automotive, electronics, textiles, and food products.</p><p>Results/Findings: The findings reveal that COO significantly influences buyer perception, but we must pay attention to how it is operationalized. COD and COM tend to have stronger effects than COA. CCI is particularly impactful for value products and new product trials. The review also highlights that multiple information cues, such as brand name and price, can moderate the COO effect. Buyer characteristics and decision-making roles further shape the influence of the COO in industrial purchasing.</p><p>Scholarly/Theoretical Implications and Recommendations for Further Research: Future research should adopt a more granular approach to COO operationalization and explore hybrid COO branding strategies. Studies should investigate decision-making processes, including individual versus collective choices, and consider cross-industry and cross-cultural comparisons. Longitudinal research is needed to understand how COO perceptions evolve.</p><p>Managerial and Practical Implications and Recommendations: Born Global firms should strategically signal their COO or CCI through branding, labeling, and advertising. COO can serve as a heuristic for industrial buyers, simplifying decision-making and reducing cognitive load. Firms should emphasize COO when it enhances brand perception and avoid it when it may be a liability. For value products, CCI is crucial in encouraging new product trials.</p><p>Public Policy Implications: Policymakers should support initiatives that enhance the global image of domestic industries and promote national branding strategies. Strengthening the country image through public policy can improve the competitiveness of domestic firms in global markets.</p>