Brand alliances and value creation : a network approach
Coulibaly, Mantiaba (2008), Brand alliances and value creation : a network approach, Fruit and Vegetable Summit, 2008-05, Paris, France
TypeCommunication / Conférence
Conference titleFruit and Vegetable Summit
MetadataShow full item record
Abstract (EN)The main objective of this communication is to propose an analytical framework for the study of brand alliances in using a network perspective. Indeed, the research upon brand alliances has been mainly focused on the impacts of such strategies on the consumer side (Cegarra and Michel, 2001; Abratt and Motlana, 2002). Few authors have developed research on the organizational side of brand alliances (Vaidyathan and Aggrawal, 2000; Bucklin and Sengupta, 1993). Theoretically, our research combines two streams of literature. In the tradition of network theory, the first stream is the approach of value creation in network (Henneberg and Mouzas, 2004). This approach helps considering networks as complex exchange systems and provides an overview of “all interactions and relationships that are value-relevant within the holistic value chain”. A second stream of literature is mobilized: the governance value and relational governance analyses (Ghosh and John, 2005; Heide, 1994). In this governance literature, brands are considered through the lens of the institutional matrix and device: partners entering into a brand alliance will craft inter firm agreements such as contractual rules, social norms and so on, to protect their specific investments and safeguard the joined value of their brands (Sauvée and Coulibaly, 2007). Our analytical grid is then applied the alliance between the private certification brand Fair Trade (Max Havelaar association or MH) and a banana brand Oké (Agrofair’s company). MH is an association with no lucrative goals which offers outlets for trade to producers. The brand Fair Trade is a promise of ethical value releasing a strong image for the product and positive attributes on the market. Agrofair is a banana importer that buys bananas to producers in developing countries, to sell them to developed countries (indirectly to final customer via hypermarkets). MH and Agrofair are thus in relation with producers, distributors, organizations of control (like FLOCERT, a certifying organization) and final consumers. By granting its license to Agrofair realizing the payment of a royalty, MH checks that information on fair trade banana is in conformity with the standards of the market without being responsible for quality. Thus in the relationship, MH seeks to protect its reputation and image of its strong brand via the fair trade concept. Agrofair permanently wants to improve its image in putting in front of access its brand Oké. This trend fuels the inter organizational dynamics between the partners and create the conditions to maintain in the long run the competitive advantage. So on this communication, we show to managers of brand alliances the importance of governance mechanisms to develop and maintain interdependence between partners of alliance and create value; and we explain that value creation on brand alliances not depend only partners’ resources (notoriety, reputation…).
Subjects / KeywordsMax Havelaar; Fair trade; Value creation; brand alliances
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