Global Brand Architecture Position and Market-Based Performance: The Moderating Role of Culture

Abstract

Companies expend vast resources to create product and brand portfolios in the global marketplace. Yet knowledge of the market-based performance implications of various positions in a firm's portfolio architecture is lacking in the literature. To further the understanding of managing brands in the global marketplace, the authors develop a conceptual framework based on the tenets of signaling theory, explore the relationship between global brand architecture and market-based performance, and consider how culture moderates this relationship. The results of the analyses, from a panel data set of 165 automotive brands operating in 65 countries from 2002 to 2008, reveal that global brands perform better in the marketplace than their nonglobal counterparts. Cultural values indeed provide boundary conditions for this relationship, suggesting that alternative strategies for some markets may be advisable.

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