Country-of-origin image (COI) as a form of cultural arbitrage: a marketing strategy for emerging country entrepreneurs

Purpose This study seeks to explore whether and how emerging country entrepreneurs can employ different facets of a country-of-origin image (COI) in their marketing strategy as a form of cultural arbitrage in culturally distant markets. Design/methodology/approach A mixed design experiment was used in the home market (Brazil) and in a culturally distant market (Sweden). Findings Emerging country entrepreneurs using a strategy based on COI marketing generate higher purchase intent than those without a COI marketing-based strategy. The COI marketing strategy can be implemented by emerging country entrepreneurs as a form of cultural arbitrage both in domestic and in international markets, balancing different facets of COI in alignment with cognitive or affective components of consumer behaviour and guided by the cultural communication orientation of the target market. Research limitations/implications This research focuses on the COI of a single emerging country, Brazil, whose impact is tested on a single culturally distant country, Sweden. To reinforce the conclusions of our research, it would be interesting to replicate the study using other emerging market countries. Practical implications It raises significant managerial and policy implications, guiding emerging country entrepreneurs and policymakers towards the appropriate calibration of COI facets to encourage this cultural arbitrage strategy. The COI marketing strategy is more effective for some markets than others, and certain COI facets are more effective than others depending on the way consumers process the COI appeal communicated (cognition of emotion). Originality/value The study delves into the strategic use of COI features in marketing strategy to exploit cultural differences by building on symbolic attributes of the emerging country entrepreneurs' home country that are positively perceived internationally. By doing so, it explores the impact of COI in the field of international entrepreneurship as an element of differentiation in the internationalization strategy of emerging country entrepreneurs, considering both the demand and the supplier components of COI. It extends previous studies on COI usage as a firm resource by explaining how COI can become a form of cultural arbitrage in the firm's internationalization strategy.