The condition of economies. Do most valuable global brands matter?
DOI:
https://doi.org/10.24136/eq.2018.013Keywords:
GDP, brand value, spatial regression, spatial cross-regressive model, spatial statistics, country of brand originAbstract
Research background: Brands are considered to be the most valuable asset of a company. Some of them achieve spectacular global results. The significance of global brands is proved by the fact that their value is often greater than the sum of all company?s net assets.
Purpose of the article: The aim of this article is to highlight that brand value does not only create company?s value, but also leverages economies. The Authors claim that even though global brands are sold worldwide and are a part of ?global factories?, they strongly relate to the development of economies in the countries where these brands? headquarters are located.
Methods: Based on 500 Brandirectory, the Most Valuable Global Brands ranking powered by Brand Finance, an analysis of spatial autocorrelation of brand values, GDP per capita was performed and also the interdependency between them was illustrated with the use of the spatial cross-regressive model (SCM). The SCM approach allowed us to include spatial effects of brand values into the final form of the estimated equation. The empirical analysis was performed for 33 countries in 2014.
Findings & Value added: Findings confirm the hypothesis that there is a highly statistically significant relationship between brand value and GDP per capita and, what?s more, it is observed that spatial dependencies matter for brand values. The evidence is based on the results of spatial cross-regressive model (SCM).
Downloads
References
Aaker, D. A. (1992). Managing the most important assets: Brand equity. Planning Review, 20(5). doi:10.1108/eb054384.
DOI: https://doi.org/10.1108/eb054384
View in Google Scholar
Anselin, L. (2002). Under the hood: issues in the specification and interpretation of spatial regression models. Agricultural economics, 27(3). doi: 10.1016/S0169-5150(02)00077-4.
DOI: https://doi.org/10.1111/j.1574-0862.2002.tb00120.x
View in Google Scholar
Anselin, L. (2010). Lagrange multiplier test diagnostics for spatial dependence and spatial heterogeneity. Geographical Analysis, 20(1). doi: 10.1111/j.1538-4632.1988.tb00159.x.
DOI: https://doi.org/10.1111/j.1538-4632.1988.tb00159.x
View in Google Scholar
Assunção, R. M., & Reis, E. A. (1999). A new proposal to adjust Morans I for population density. Statistics in Medicine, 18(16). doi:10.1002/(sici)1097-0258(19990830)18:16<2147::aid-sim179>3.0.co;2-i.
DOI: https://doi.org/10.1002/(SICI)1097-0258(19990830)18:16<2147::AID-SIM179>3.0.CO;2-I
View in Google Scholar
Barwise, P., Higson, C., Likierman, A., & Marsh, P. (1989). Accounting for brands. London: London Business School and The Institute of Chartered Accountants in England and Wales.
View in Google Scholar
Barwise, P., Higson, C., Likierman, A., & Marsh, P. (1990). Brands as "separable assets". Business Strategy Review, 1(2). doi: 10.1111/j.1467-8616. 1990.tb00010.x.
DOI: https://doi.org/10.1111/j.1467-8616.1990.tb00010.x
View in Google Scholar
BBC (2014). http://www.bbc.com/news/technology-29833131 (03.01.2017).
View in Google Scholar
Belo, F., Lin, X., & Vitorino, M. A. (2014). Brand capital and firm value. Review of Economic Dynamics, 17(1). doi:10.1016/j.red.2013.05.001.
DOI: https://doi.org/10.1016/j.red.2013.05.001
View in Google Scholar
Bissett, J. (2002). No logo: taking aim at the brand bullies. Naomi Klein, Flamingo, Hammersmith, London, 2000, 490 pp. ISBN 0 00 255919 6, pound16.99. Community Development Journal, 37(1). doi:10.1093/cdj/37.1.111.
DOI: https://doi.org/10.1093/cdj/37.1.111
View in Google Scholar
Buckley, P. J. (2009). The impact of the global factory on economic development. Journal of World Business, 44(2). doi:10.1016/j.jwb.2008.05.003.
DOI: https://doi.org/10.1016/j.jwb.2008.05.003
View in Google Scholar
Buckley, P. J., & Strange, R. (2015). The governance of the global factory: location and control of world economic activity. Academy of Management Perspectives, 29(2). doi:10.5465/amp.2013.0113.
DOI: https://doi.org/10.5465/amp.2013.0113
View in Google Scholar
Brandirectory (2014). The most 500 valuable global brands ranking, Brand Finance. Retrieved form http://brandirectory.com/ (03.01.2017).
View in Google Scholar
De, S. (2014). Intangible capital and growth in the ‘new economy’: implications of a multi-sector endogenous growth model. Structural Change and Economic Dynamics, 28. doi:10.1016/j.strueco.2013.11.003.
DOI: https://doi.org/10.1016/j.strueco.2013.11.003
View in Google Scholar
Dimitrova, B. V., Korschun, D., & Yotov, Y. V. (2017). When and how country reputation stimulates export volume. International Marketing Review, 34(3). doi:10.1108/imr-10-2015-0211.
DOI: https://doi.org/10.1108/IMR-10-2015-0211
View in Google Scholar
Ferilli, G., Sacco, P. L., Teti, E., & Buscema, M. (2016). Top corporate brands and the global structure of country brand positioning: an AutoCM ANN approach. Expert Systems with Applications, 66. doi:10.1016/j.eswa.2016.08.054.
DOI: https://doi.org/10.1016/j.eswa.2016.08.054
View in Google Scholar
Hamilton, K., Ruta, G., Bolt, K., Markandya, A., Pedroso-Galinato, S., Silva, P., Ordoubadi, M. S., Lange, G. M., & Tajibaeva, L. (2005). Where is the wealth of nations? measuring capital for the 21st century. The World Bank, Washington DC.
View in Google Scholar
Kamakura, W. A., & Russell, G. J. (1993). Measuring brand value with scanner data. International Journal of Research in Marketing, 10(1). doi:10.1016/0167-8116(93)90030-3.
DOI: https://doi.org/10.1016/0167-8116(93)90030-3
View in Google Scholar
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1). doi:10.2307/1252054.
DOI: https://doi.org/10.2307/1252054
View in Google Scholar
Keller, K. L., & Lehmann, D. R. (2006). Brands and branding: research findings and future priorities. Marketing Science, 25(6). doi:10.1287/mksc.1050.0153.
DOI: https://doi.org/10.1287/mksc.1050.0153
View in Google Scholar
Kucharska, W. (2016). Customer assessment of brand valuation and social media. In ECSM 2016 - proceedings of the 3rd European conference on social media. doi: 10.13140/RG.2.2.13573.35045.
View in Google Scholar
Longley, P. A., Goodchild, M. F. Maquire, D. J., & Rhind D. W. (2005). Geographic information systems and science. New York: Wiley.
View in Google Scholar
Malik, K. Z., Ali, S. Z., & Khalid, A. M. (2014). Intangible capital in a real business cycle model. Economic Modelling, 39. doi: 10.1016/j.econmod. 2014.02.018
DOI: https://doi.org/10.1016/j.econmod.2014.02.018
View in Google Scholar
Nakamura, L. I. (2010). Intangible assets and national income accounting. Review of Income and Wealth, 56. doi:10.1111/j.1475-4991.2010.00390.x
DOI: https://doi.org/10.1111/j.1475-4991.2010.00390.x
View in Google Scholar
Papadopoulos, N. (1993). What product and country images are and are not. In N. Papadopoulos & L. A. Heslop (Eds.). Product-country images: impact and role in international marketing. Binghampton, N.Y.: The Haworth Press.
View in Google Scholar
Pappu, R., Quester, P. G., & Cooksey, R. W. (2006). Consumer‐based brand equity and country‐of‐origin relationships. European Journal of Marketing, 40(5/6). doi:10.1108/03090560610657903
DOI: https://doi.org/10.1108/03090560610657903
View in Google Scholar
Pietrzak, M. B. (2010). Application of economic distance for the purposes of a spatial analysis of the unemployment rate for Poland. Oeconomia Copernicana, 1(1). doi:10.12775/oec.2010.005.
DOI: https://doi.org/10.12775/OeC.2010.005
View in Google Scholar
Pike, A. (2009). Brand and branding geographies. Geography Compass, 3(1). doi:10.1111/j.1749-8198.2008.00177.x.
DOI: https://doi.org/10.1111/j.1749-8198.2008.00177.x
View in Google Scholar
Pike, A. (2013). Economic geographies of brands and branding. Economic Geography, 89(4). doi:10.1111/ecge.12017.
DOI: https://doi.org/10.1111/ecge.12017
View in Google Scholar
Pike, A. (2015). Origination: the geographies of brands and branding. John Wiley & Sons. doi: 10.1002/9781118556313
DOI: https://doi.org/10.1002/9781118556313
View in Google Scholar
Rogerson, P. A. (2010). A statistical method for the detection of geographic clustering. Geographical Analysis, 33(3). doi: 10.1111/j.1538-4632.2001. tb00445.x.
DOI: https://doi.org/10.1111/j.1538-4632.2001.tb00445.x
View in Google Scholar
Smaoui, F., Kilani, F. A., & Touzani, M. (2016). Country-of-origin versus brand: consumers’ dilemma when choosing between generic and branded drugs in emerging countries. Journal of Product & Brand Management, 25(2). doi: 10.1108/jpbm-04-2014-0553.
DOI: https://doi.org/10.1108/JPBM-04-2014-0553
View in Google Scholar
Suchecki, B. (Ed.). (2010). Ekonometria przestrzenna: metody i modele analizy danych przestrzennych. Wydawnictwo CH Beck.
View in Google Scholar
Tobler, W. R. (1970). A computer model simulating urban growth in the Detroit region. Economic Geography, 46. doi:10.2307/143141.
DOI: https://doi.org/10.2307/143141
View in Google Scholar
Wang, S., Luo, K., Liu, Y., Zhang, S., Lin, X., Ni, R., & Gao, X. (2015). Economic level and human longevity: spatial and temporal variations and correlation analysis of per capita GDP and longevity indicators in China. Archives of Gerontology and Geriatrics, 61(1). doi: 10.1016/j.archger.2015.03.004.
DOI: https://doi.org/10.1016/j.archger.2015.03.004
View in Google Scholar
Zéghal, D., & Maaloul, A. (2011). The accounting treatment of intangibles — a critical review of the literature. Accounting Forum, 35(4). doi: 10.1016/j.accfor. 2011.04.003.
DOI: https://doi.org/10.1016/j.accfor.2011.04.003
View in Google Scholar
