“…Concerning the classification, global hotel companies should be among the first to undergo the classification process established by SCTH, as it contributes to the high potential and most likely influence the customer' preference. Johansson and Ronkainen (2005) claimed that brand esteem is affected by classification and categorization. The high potential classification should be used as a marketing weapon by these companies for battling against the local competitors.…”
Saudi Arabia has formulated and enforced a new tourism law to develop its tourism sector with special emphasis to open more international activities in the hotel industry. The main objective of this study was to determine the influence of new regulations of hotel industries in Saudi Arabia on the decision making process of the hotel companies in relation to international franchising. Qualitative research design was used to investigate the connection between new regulations of hotel industry in Saudi Arabia and its cross-border franchising activities. Data was retrieved from two primary sources: governmental agencies and, the hotel and leisure companies involved in franchising. The main sectors covered were the investment in tourism lands, establishment of tourism based associations, and replacement of foreigners, price and classification. Data was generated through twelve in-depth interviews with the representatives of the sample companies, from April to September 2016. The primary data generated during interviews was complemented by data from industrial publications and the annual reports to know about the current status of Saudi hotel industry and the activities of the sample companies. Findings confirmed that the regulatory reforms of a hotel industry, by following new hotel-based regulations, added new vigor to hotel based industry and enhanced its international profile. The new tourism law authorized the Saudi Commission for Tourism and Heritage (SCTH) to identify and propose new lands for tourism investment, which may increase its importance among the global hotels' franchisors.
“…Concerning the classification, global hotel companies should be among the first to undergo the classification process established by SCTH, as it contributes to the high potential and most likely influence the customer' preference. Johansson and Ronkainen (2005) claimed that brand esteem is affected by classification and categorization. The high potential classification should be used as a marketing weapon by these companies for battling against the local competitors.…”
Saudi Arabia has formulated and enforced a new tourism law to develop its tourism sector with special emphasis to open more international activities in the hotel industry. The main objective of this study was to determine the influence of new regulations of hotel industries in Saudi Arabia on the decision making process of the hotel companies in relation to international franchising. Qualitative research design was used to investigate the connection between new regulations of hotel industry in Saudi Arabia and its cross-border franchising activities. Data was retrieved from two primary sources: governmental agencies and, the hotel and leisure companies involved in franchising. The main sectors covered were the investment in tourism lands, establishment of tourism based associations, and replacement of foreigners, price and classification. Data was generated through twelve in-depth interviews with the representatives of the sample companies, from April to September 2016. The primary data generated during interviews was complemented by data from industrial publications and the annual reports to know about the current status of Saudi hotel industry and the activities of the sample companies. Findings confirmed that the regulatory reforms of a hotel industry, by following new hotel-based regulations, added new vigor to hotel based industry and enhanced its international profile. The new tourism law authorized the Saudi Commission for Tourism and Heritage (SCTH) to identify and propose new lands for tourism investment, which may increase its importance among the global hotels' franchisors.
“…For example, Haier has established its ARHQ in Japan to signal that it has adopted Japanese design and technology in its production process. Second, ARHQ in global cities enhances brand 'globalness', which is usually labeled as high quality and prestige (Holt, John, & Taylor, 2004;Johansson & Ronkainen, 2005) and thereby increases purchase likelihood (Steenkamp, Batra, & Alden, 2003). It is easier for Chinese MNEs to bypass formal and informal barriers when exporting to the other two triads.…”
Section: Hypothesis 1: the Higher The Degree Of A Chinese Mne's Intramentioning
This study addresses why multinational enterprises (MNEs) in emerging economies establish regional headquarters outside their home countries but within their home regions -an important question that previous studies have largely ignored. We extend Rugman and Verbeke's firm-specific assets (FSAs) framework in contemporary internalization theory and differentiate two firm-specific regional strategies (i.e., foreign direct investment (FDI) and export regionalization) to examine their effects on MNEs' establishment of regional headquarters in the context of emerging economies. Using survey data from 226 Chinese MNEs, we find that intraregional FDI and interregional exports encourage MNEs to build Asian regional headquarters (ARHQ). Furthermore, we find that home-city regional integration moderates the relationship between interregional exports and ARHQ establishment and that MNEs' international management capability moderates the relationship between intraregional FDI and ARHQ establishment. This study contributes to the regional strategy literature by clarifying the regional strategies, structures, and management of latecomer Chinese MNEs.
“…Global brands are believed to enjoy greater esteem (Johansson & Ronkainen, 2005) and evoke appealing global myths (Holt, Quelch, & Taylor, 2004). Global brands are perceived to be more value-added for the consumer by enhancing the consumer's selfperception as being cosmopolitan, sophisticated and modern (Friedman, 1990;Holt et al, 2004;Johansson & Ronkainen, 2005;Kapferer, 2002;Steenkamp et al, 2003;Thompson & Tambyah, 1999).…”
Determinantes do sucesso de marcas globais e locais na América Latina Determinantes del éxito de las marcas globales y locales en América Latina
ABSTRACTThe purpose of this paper is to address the issue of the implementation of global and local brands in Latin America by drawing on contingency theory to develop and test hypotheses relating to how product category characteristics affect the success of global and local brands in the region. Hypotheses are tested using data obtained from top brands rankings reported in five Latin American markets (Argentina, Brazil, the Caribbean and Central America, Chile and Mexico). The study design considers estimating a logistic regression on a binomial dependent variable measuring whether 475 top brands are global or local brands, with product category characteristics as independent variables. Results reveal that product categories related to subscriptions, local tastes, high-tech, and global citizenship do have an impact on the success of global and local brands in Latin America.
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RAE-Revista de Administração de Empresas | FGV-EAESP
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