The role of nation brand in attracting foreign direct investments: a case study of Korea
International Marketing Review
ISSN: 0265-1335
Article publication date: 11 December 2019
Issue publication date: 12 February 2021
Abstract
Purpose
Drawing on the six-dimensional framework of the Anholt-GfK Nation Brands Index (NBI), the purpose of this paper takes a government-to-business (G2B) perspective of international marketing by shedding light on how governments (as sellers) can harness their nations’ brand image to attract businesses (as buyers) to invest in the country.
Design/methodology/approach
Using Korea as context, this study interviewed Korea-based foreign multinational companies (MNCs) to elucidate how nation brand had influenced their FDI decisions to establish R&D centres in Korea. Purposive sampling identified 36 MNCs from diverse countries and industries that had set up R&D centres within the last decade. Individual in-depth interviews probed the MNCs’ views of Korea’s nation brand in regards to their FDI decisions. Recorded interviews were transcribed and analysed for common themes.
Findings
Five key thematic attributes of Korea’s nation brand emerged: rigid labour market, pro-FDI government, Chaebols’ dominance, strong nationalism and rapid industrialisation. These attributes relate to NBI’s dimensions of people, governance, investment/immigration, culture/heritage and exports, respectively. The dimensions impacted Korea’s nation brand differently.
Originality/value
This study contributes to nation branding research by applying the Anholt-GfK NBI to empirically investigate nation brand’s influence on attracting business investments at a macro-G2B level. The findings are particularly useful in guiding government policy-makers and trade organisations on running nation-brand promotions and marketing campaigns for FDIs. The findings will also benefit foreign businesses who are considering injecting capital investments into a country.
Keywords
Citation
Lee, R. and Lee, Y.-i. (2021), "The role of nation brand in attracting foreign direct investments: a case study of Korea", International Marketing Review, Vol. 38 No. 1, pp. 124-140. https://doi.org/10.1108/IMR-01-2019-0024
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited