National pride or betrayal? How brand nationality shapes consumer responses to controversial corporate advocacy

Purpose Drawing on the concepts of in-group favoritism and the black sheep effect, this paper aims to examine how brand nationality moderates the negative impact of misaligned corporate political advocacy (CPA) stances. Focusing on contentious sociopolitical issues, such as LGBT rights, this study explores the conditions under which consumers exhibit greater tolerance for domestic vs foreign brands that take controversial CPA positions. Design/methodology/approach Two experimental studies were conducted to test the proposed hypotheses. The experiments manipulated misaligned CPA stances while varying CPA issues and brand nationalities. Data was collected via surveys administered by professional survey companies in Indonesia (Study 1) and Taiwan (Study 2). Findings The experiments revealed two key conditions where brand nationality moderates the impact of a misaligned CPA stance: (1) When consumers exhibit a high degree of nationalism, the negative effect of misaligned CPA is less severe for domestic brands compared to foreign brands. (2) When the CPA issue pertains to group norms or national identity, domestic brands face a stronger negative impact from misaligned CPA than foreign brands. Originality/value This research advances the literature on brand activism and international marketing by showing how brand nationality moderates consumer reactions to misaligned CPA under specific conditions. It highlights the opposing effects of consumer nationalism and CPA issues: nationalism reduces the negative impact for domestic brands while issues tied to shared norms increase backlash. This dual dynamic offers new insights for understanding in-group favoritism and the black sheep effect in international markets. This research contributes to the broader conversation on brand inclusivity by illustrating how inclusive brands can align their sociopolitical stances with diverse consumer expectations while minimizing potential backlash.