CC BY
0DOI: 10.29141/2658-5081-2024-25-2-2 EDN: LYJJWR JEL classification: M31
Olga A. Kusraeva HSE University, Moscow, Russia
Nation brand: A systems approach to the creation and management
Abstract. A nation brand impacts on a country's economic development, stimulating or, contrarily, limiting people and organisations' readiness to invest various resources within a particular jurisdiction. Simultaneously, a nation brand originates in all activities of organisations operating in the country's territory. The paper aims to develop theoretical foundations of the nation brand management as a system. The methodological basis of the study is the concept of nation branding and the systems approach. A set of general scientific methods of analysis, synthesis, systematisation and generalisation are used. As a result, the paper provides and describes a system for the nation brand management that comprises input (existing perception of a country), transformation processes (creation of an image), and output (the image shaped). The value of the developed system lies in its ability to coordinate the interests of diverse stakeholders. The article presents a vision of 7-S model implementation for the nation brand based on the understanding of the relationships that lead to the formation of nation brand as well as the representation of external and internal dynamic processes that evolve over time, etc. The findings contribute to grasping the essence of the nation brand management using the principles of the systems approach, which potentially enhances the country's economic development.
Keywords: economic development; nation branding; systems approach; corporate branding; values; Russia; 7-S model.
For citation: Kusraeva O. A. (2024). Nation brand: A systems approach to the creation and management. Journal of New Economy, vol. 25, no. 2, pp. 27-44. DOI: 10.29141/2658-5081-2024-25-2-2. EDN: LYJJWR.
Article info: received Januray 14, 2024; received in revised form March 2, 2024; accepted March 25, 2024
Introduction
The nation brand (NB)1 of a country influences the level of its economic development. People's perceptions of any country impact on trade and tourism, as well as foreign direct investment [Kaneva, 2011; Zeriouh et al., 2020]. A strong NB increases exports, attracts qualified specialists, creates jobs and maintains a country's soft power [He, Wang, Wu, 2021]. NB management is a complex activity; its structure is formed by taking into account the activities of various stakeholders both within a country and abroad [Anholt, 2003]. NB influences all areas of activity in a country, creates expectations for foreign citizens in relation to it, its population, territory, goods and services [Fan, 2006; Dinnie, Sevin, 2020; Rojas-Méndez, Khoshnevis, 2023]. Accordingly, NB contributes to the global economy in shaping the image of a state for various groups of stakeholders.
Issues of managing NB and processes reflecting values and meanings within a country remain relevant and can be communicated to external stakeholders [Angell, Mordhorst, 2015; Hao et al., 2021]. At the same time, approaches, principles and tools for NB management differ depending on the scientific areas where they are analysed. Various studies connect nation branding with the concepts of place, corporate and tourism branding, as well as public diplomacy [Rojas-Méndez, Khoshnevis, 2023]. However, regardless of the concept used for analysing NB management, the problem of systematising management efforts in terms of nation branding implemented by various stakeholders has not received a clear solution as yet. Accordingly, the question arises of how to structure management processes in such a way that various groups of stakeholders can integrate NB meanings into their activities.
NB management is based on cross-functional interaction of various government, commercial and non-profit structures. Despite this, no organisation, regardless of its specialisation, capabilities or influence, will be able to build a country's NB solely. However, organisations can perform at least one of the functions, for example, by directing and adjusting the activities of other institutions [Frig, Sorsa, 2020]. At the same time, a decentralised system in which organisations independently implement nation branding processes is irrelevant, since it leads to different interpretations, communication gaps and, accordingly, does not allow achieving the goals of nation branding [Dinnie, 2015]. However, it is noteworthy that the optimal form and combination of organisations within NB management will vary from country to country. Nevertheless, general principles of management are necessary, based,
1 Within the work, the abbreviation NB is used to replace the term "nation brand". The term "nation branding" is used without abbreviations. We distinguish between the NB identity and image in the following way: the NB identity is a certain vision of the NB, which needs to be formed in the minds of stakeholders, i.e., these are the meanings, determined by the NB management team, while the NB image is the NB perception formed in the minds of various stakeholders, and a result of national branding activities [Kusraeva, Starov, 2023].
firstly, on the systems approach, since it considers NB as a system of interrelated elements; secondly, on the brand management specifics, since the key activity is creating a country brand.
The purpose of the work is to study the conceptual foundations of nation branding and NB from the standpoint of the systems approach. To achieve this purpose the following objectives were set out:
- forming and defining the NB system that contributes to the development of a country's economy;
- developing fundamental principles of NB management based on the systems approach for various stakeholders.
The paper is structured as follows. The first section introduces definitions of NB and nation branding, provides an analysis of the main approaches to NB management and specifics, and formulates the prerequisites for rethinking its management. The second section identifies the basic principles of the systems approach to management, defines the NB system and the principles of the systems approach to nation branding, and presents the "7-S" model. The conclusion sums up the results of the work and presents the directions for future research.
Basic approaches and specifics of NB management
Nation branding is the result of management and strategic efforts to purposefully promote specific ideas of a country's representatives [Kotler, Gertner, 2002]. NB is a set of meanings formed in the minds of people by reason of interaction with visual, verbal, behavioural and other manifestations of a country [Fan, 2010]. Thus, NB is people's beliefs in relation to a country; an image representing a simplified version of a large amount of information about a state and associations connected with it. Many researchers support the idea of defining a brand through a set of perceptions formed in people's minds [Fan, 2006; Fetscherin, 2010]. On the other hand, NB is first and foremost a brand, so it appeals to the idea of differentiation. It is seen as "a unique, multidimensional blend of elements that provide the nation with culturally grounded differentiation and relevance for all of its target audiences' [Dinnie, 2015, p. 15].
As a result, nation branding processes address multiple levels, components and subjects, and involve the collective participation of various stakeholders [Fetscherin, 2010]. Accordingly, the main goals of nation branding are: stimulating exports, developing tourism, attracting investment and talent, creating a positive international perception. When generalising about the goal of nation branding, we can conclude that it comes down to the economic development of a country through NB elements.
A great number of elements is explained by the fact that nation branding is aimed at creating a holistic perception of a country not only among the local population, but
also among international communities therefore, nation branding covers both political and economic aspects, as well as social and cultural ones [Anholt, 2007; Quelch, Jocz, 2008; He, Wang, Wu, 2021]. The connection with these aspects indicates the need to establish a relationship between nation branding and four concepts based on the use of social, cultural and political tools, namely: soft power, public and cultural diplomacy, place branding.
Soft power. As a form of foreign policy strategy, it aims to create preferences by promoting a country's values, culture and policies [Nye, 1990]. Unlike nation branding, soft power is about creating a country's image, mainly abroad. It is not only a way to influence, but also an opportunity to "attract", which allows changing people's preferences. Subsequently, changes in preferences lead to changes in the actions taken. Similar to soft power, nation branding is aimed at creating and disseminating the NB image in order to manage the behaviour of stakeholders and relationships with them.
Soft power, like hard power or smart power1, refers to the idea of influencing other countries [Wilson, 2008], but is implemented through intangible, soft instruments of power [Nye, 1990]. Compared to hard power, soft power is relative, intangible, and context-based. It is not subject to the complete control of any single organisation because it is associated with intangible benefits. In addition, the activities of organisations, including those belonging to non-state structures (e.g., exhibitions of private galleries), can act as an instrument of soft power. At the same time, its effectiveness depends on the perception of foreign stakeholders, who themselves decide what is attractive to them and what is not.
The fact that soft power is based on the idea of differentiating the perceptions of various stakeholders makes this approach similar to nation branding and, in essence, refers to marketing tools, since it involves segmenting stakeholders and adapting the value proposition and meanings according to their needs. At the same time, nation branding is a more pragmatic type of cultural management activity than soft power, since it also affects economic aspects [Fan, 2010], directing the soft power instruments to economic development to obtain economic profit (e.g., through tourism or foreign direct investment).
Public diplomacy. Basically, definitions of public diplomacy are built around the idea of communication (promotion), involving persuasion of stakeholders external to a country in order to influence their foreign policy decisions [Cull, 2008]. At the same time, public diplomacy is based on impression management, which significantly brings it closer to nation branding. For example, public diplomacy is understood
1 The concept of hard power involves the use of force or economic coercion in order to influence the actions or preferences of other countries. Smart power is the ability to combine hard and soft power to form a winning strategy [Nye, 2006].
as "state communication made to create a change in the feelings and thoughts of the target audience abroad" [Szondi, 2008, p. 6]. The relationship is obvious from the viewpoint of the meanings underlying the concepts of nation branding and public diplomacy. However, public diplomacy is a solution that can only be applied by diplomats, which limits its use.
Cultural diplomacy. In addition to the fact that the relationship between nation branding and public diplomacy has not been established, the same situation has developed with cultural diplomacy. It refers to the strategic decisions of a state to promote national interests "by advocating to promote a particular policy before a foreign public; engaging in cultural diplomacy to export particular practices and build good feeling abroad" [Cull, 2008, p. 118]. This approach intersects with the goals of nation branding, the key goal is the promotion of cultural heritage and cultural values among stakeholders [Anholt, 2003].
Cultural diplomacy deals with the exchange of ideas, information, art, etc. between countries and their people to strengthen mutual understanding [Cummings, 2003]. A state uses cultural diplomacy to support foreign policy goals, combat stereotypes and promote national values. It is aimed at the international community, and interaction with citizens of a country is outside the scope of this activity.
From a nation branding perspective, cultural and public diplomacy are only parts of a bigger picture, while nation branding is linked to all areas of government interest. Cultural diplomacy is based on the promotion of culture; public diplomacy is based on communication through diplomacy. Undoubtedly, both of these areas are significant for shaping a country's image. Nevertheless, they are focused on specific areas, while the development of a single semantic field, its transmission through various spheres of activity and control of these processes is beyond their capabilities. On the other hand, diplomacy can cover a small number of stakeholders and has constraints, since information provided in this way may not be perceived as reliable and trustworthy.
Place branding. Place branding is based on the basic functions of branding (identification and differentiation) and is aimed at creating a unique image of a territory [Greaves, Skinner, 2010]. In addition, the key role of place branding is emphasised in the formation of competitive advantages through differentiation based on many factors, from forming a brand promise to creating unique associations with a territory [Qu, Kim, Im, 2011].
However, place branding is largely aimed at the development of tourism. For example, the definition of a place brand comes down to "perceptions about the place as reflected by the associations held in tourist memory" [Cai, 2002, p. 723]. At the same time, studies of a place brand in the context of tourism mainly turn to
functional integration between partners along the entire tourism chain [Giannop-oulos, Piha, Avlonitis, 2011].
All enterprises providing tourism services are connected with each other in a certain sequence. Before travelling, tourists receive information from a travel agent or the Internet, and get to a destination by a certain type of transport. Upon arrival, they stay at a hotel, eat in a restaurant, go out and interact with local people or visit tourist attractions, and then return home [Zehrer, Raich, Pechlaner, 2006]. The key moment for place branding is not only conveying common meanings to individual participants in this chain, but also controlling the communication relevance of these meanings, eliminating the possibility of distortion, ambiguity or discrepancies.
Within a territory, it is quite difficult to compete on the basis of rational factors, since their list is limited and practically unchangeable (e.g., it is difficult to change the existing landscape of a territory without significant investment, making it more attractive).
The emotional values of a place brand are becoming increasingly important [Gil-more, 2002; Almeyda-Ibáñez, George, 2017; Cheung et al., 2021]. They reflect "values that endure no matter what the times because they represent what the nation's citizens believe in and believe about themselves" [Gilmore, 2002, p. 286]. Meanwhile, environmental factors such as economics, resources and culture influence the formation and communication of this spirit [Gilmore, 2002]. Thus, the special spirit of citizens becomes the key idea of a territory, and all areas of activity implemented in a territory are directly related to it. Within nation branding, appealing to emotional values is fair, since there are quite a lot of different territories in a country, and it is necessary to combine them all in a single idea, the search for which is difficult in the context of exclusively rational advantages, but is more promising in the case of integration with emotional values.
Thus, the activities of nation branding are broader than in the basic concepts which consider NB management. Figure 1 shows key ideas reflecting the intersection of nation branding and analysed concepts.
Fig. 1. Intersection of nation (place) branding, soft power, public and cultural diplomacy concepts
Soft power and place branding affect such an aspect of nation branding as differentiation. Public and cultural diplomacy address the idea of communication, focusing on building reputation and spreading culture. On the other hand, soft power and cultural diplomacy in the context of nation branding are united by the use of culture to change stakeholders' behaviour.
If to turn to the activity focus, nation branding is more related to the concept of soft power and place branding, since it is aimed at shaping perceptions both within a country and abroad. However, public and cultural diplomacy are externally oriented and focus primarily on the international community.
Thus, the key concepts studying nation branding do not provide a basis for embedding the logic of NB management, since they do not cover all processes of nation branding, narrowing them to a certain sphere or function (e.g., the cultural sphere or differentiation function). Accordingly, it is necessary to determine the special characteristics of NB management processes, which are key ones when forming an approach to management.
NB is formed in the minds of people through connecting to a country, regardless of the goals, methods and reasons for this interaction. [He, Wang, Wu, 2021]. It is impossible to control the entire range of communications that occurs within NB formation, but it is necessary to manage these processes. In particular, nation branding is not only communications, it also includes activities related to the design, development and control of national information. Specifics of nation branding processes determine the peculiar landscape of NB management. We are going to consider three key characteristics that shape NB management activities.
1. Multidimensional nature of NB: a wide range of stakeholders and points of contact with a brand. A wide range of different stakeholders are involved in NB development and implementation. The stakeholders shaping the perception of a country, also include government organisations, ministries, councils, travel agencies and representatives of various business sectors [Olins, 2005]. The difficulty is that, on the one hand, there must be a set of meanings relevant to all these areas of activity. On the other hand, it is necessary to formulate an NB idea that will harmoniously promote key areas for a country, but at the same time will not contradict other areas of its activity. For example, at the beginning of the 21st century Scotland needed to create NB aimed at promoting not only the traditional industries well-known in the country, but also a high technology sector, which was at odds with the formed image of Scotland. Then, New Zealand faced a similar dilemma when trying to develop and implement NB that could cover the promotion of both key primary industries (sheep and timber), as well as the pharmaceutical and high-tech industries.
Thus, NB cannot be created in isolation. There is a number of parameters that form it. Therefore, it is important to take into account their relationships, affecting
management processes. Moreover, even in the management theory, NB accumulates various aspects and spheres of a state, including people (nation), territories, businesses, products, services, etc.
Within nation branding, the communication management of all the state's activities, its aspects and attributes for forming a certain image of a country is implied. However, it is obviously impossible to control everything. For example, it is not possible to directly control the content generated by consumers. However, this risk can be mitigated through systematic work on NB development and communication. Thus, an integrated approach is required to manage NB.
2. NB is not equal to a tourism brand and is built on more than one industry. Despite this, the experience of creating NB through the formation of meanings and values relating to a specific industry is quite widespread [Sata0en, 2019; Danilova, 2020]. In world practice, tourism can often serve as such an example, as it is the most visible and measurable sector [Avraham, 2020]. In a situation where tourism becomes the basis for NB, it is important to differentiate each territory in order to increase its value for tourists. This is the way sub-brands are created1. However, this may cause competition between sub-brands for investment and lead to wastage or duplication of investment funding, since government incentives under NB are involved. Competition can even arise within sub-brands or, for instance, local business organisations involved in tourism. Regardless of the industry, the one on the basis of which NB is built receives the main promotion and development among stakeholders, as well as state support.
The prevalence of this approach is partially due to the complexity to involve all stakeholders and achieve the agreement on NB understanding, strategy and promotion. However, the promotion of one state sector narrows the list of transmitted meanings and the audience, and limits the opportunities for forming relationships with a wider range of stakeholders.
3. NB management is based on corporate branding and addresses the integration of marketing tools. NB development is a purposeful process, in some ways similar to the development of a corporate brand, but with significant differences [Van Riel, Balmer, 1997; Balmer, 2013]. A country may be well-known abroad, but domestic political events, values and priorities can influence certain aspects of its NB. Thus, forming a holistic image of a country is a difficult process due to the constant restructuring of its attributes due to sometimes poorly controllable or uncontrollable events and decisions.
Corporate and nation branding are also similar in that corporate branding involves the transmission of meanings that a company cares and stands for [Fetscherin,
1 Sub-brands of a travel brand refer to new travel brands based on the parent travel brand. For example, if Russia is the parent tourism brand, the sub-brand could be, in particular, the Black Sea coast of Russia ("Russian Riviera").
Usunier, 2012; Balmer, 2013], while product or place branding promotes focused messages: the properties, characteristics or benefits of a particular product or area. Nation branding, just like corporate branding, refers to ideas of a higher order: values, principles, meanings, where the promotion of various sectors, industries, organisations can be united [Fan, 2006].
However, food brands can also embody NB meanings and values. And even within management, NB can play a significant role in its formation. Some brands have become significant communication tools of the national idea [Steenkamp, 2019]. A common practice is to transform product brands into the culture elements of a particular country [Kumar, Steenkamp, 2013]. For example, Harley-Davidson is not just a motorcycle, it personifies "rebellion and freedom", as the key meanings of the US NB.
Thus, representing a multidimensional structure, NB is formed not only on the basis of one industry; it refers to various marketing tools and bears similarities to corporate brands. At the same time, NB management addresses a long-term process, which involves a large number of stakeholders. Transmitting individual meanings to different stakeholders using different tools will lead to NB blurring. Therefore, the key point is the control of the relevance of channels and tools for the target audience. At the same time, dividing NB into parts as well as regulating its individual elements should be reconsidered in the terms of its management as a system.
Systems approach fundamentals: Possibilities for NB management
The systems approach has made a new round of development within management theories and implementation in business practices both in individual areas and conceptually [Sedarati, Serra, Jere Jakulin, 2022; Grewatsch, Kennedy, Bansal, 2023]. However, despite the many definitions of the system, a unified approach to its definition has not been formed in the academic environment [Bertalanffy, 1968; Churchman, 1971]. Most approaches combine three key ideas underlying the system:
- systems consist of parts (elements);
- there is a relationship between these parts (elements);
- systems have a coherent structure (i.e., a common goal) that ensures that interacting parts form a coherent whole.
One of the most common definitions in management belongs to Churchman, according to which "a system is a set of parts coordinated to accomplish a set of goals" [Churchman, 1968, p. 18]. In a broad sense, "a systems approach begins when you first see the world through the eyes of another" [Churchman, 1971, p. 231]. Churchman positions the systems approach as a response to the "environment fallacy" that is common in organisational planning. The "environmental misconception" is associated
with systemic errors that occur when organisation's employees focus overly on the urgency of the situation and use targeted rather than comprehensive actions to solve the problem.
An important role within the systems approach is given to the environment, i.e., the external environment where a system operates since the critical fact is that when the environment changes, its perception also tends to change [Ackoff, 1994]. This is reflected in the perception of the system, because it influences the analysis of dynamic rather than static processes and the understanding of the entire context as a whole [Skarzauskiene, 2010]. In fact, the systems approach is based on the assumption and necessity of the interdependence and interconnectedness of a set of various factors and parameters that make up the whole, despite whether it is an organisation or a company, a territory or a country.
If to consider NB as a system, its main elements are all commercial and non-profit organisations, whose activities are carried out in the territory of a country, citizens, foreigners working or living in a state, objects of cultural and historical heritage, and landscape. All of them are capable of influencing NB identity development and image formation. There is a relationship between the elements, reflecting their interdependence in the processes of nation branding.
The NB system is aimed at forming an image relevant to its identity for different stakeholders and target audiences. The idea is that, as a result of controlled actions, this perception reflected NB adequately and corresponded to the meanings that should be perceived by various stakeholders. Consequently, NB management implies a system aimed at its creation, promotion and development, which includes a set of organisations implementing not only the processes of developing and communicating NB meanings, but also controlling their relevant and correct delivery (Figure 2).
Fig. 2. Nation brand system
Figure 2 clearly shows that the input for the NB system is the formed perception of a country by various stakeholders. As mentioned above, the vision of a country arises regardless of the presence or absence of targeted actions concerning NB formation. This perception differs significantly among different stakeholders. However, for a nation branding system, understanding what opinions have been formed about a country is very important, since they represent the starting point for establishing the NB identity and strategy, as well as for implementing communications. It is about assessment from not only stakeholders internal to a country, but also external ones, since NB is formed for foreign audiences as well. Therefore, even if it is intended to focus exclusively on stakeholders local to the country, understanding the perception of a country by the international community can provide ideas for NB formation and communication (e.g., meanings that should be avoided or on the contrary, actively exploited).
Transformation processes are embodied in nation branding processes. Within the NB system, these processes include the entire management chain: from development and communication to control. The introductory part of nation branding contains two processes: forming the national identity and developing its strategy. The first determines the key meanings that form NB basis and are created on understanding of a country's existing perception (the system input). The second reveals the focus of activities regarding NB management, key goals and objectives. Next, nation branding is implemented in the processes of communication, development and control. As a result of transformation processes, the NB image becomes the system output. The system's success is reflected in whether the formed image corresponds to the NB developed identity. In this regard, feedback makes it possible to clarify the correspondence of these two elements and adjust nation branding processes. The considered characteristics of the systems approach in relation to nation branding are presented in Table.
As can be seen from Table, within nation branding, the characteristics of the systems approach are influenced by NB essence. Thus, the vision of true systemic causes is transformed into a vision of systemic causes that influence the outputs of the NB system, since NB multifactorial nature does not make it possible to identify all systemic causes, as there may be a large number of them. Therefore, the focus is on those causes that influence the output of the system, namely the formed NB image. Identifying and analysing systemic causes are not of particular value within NB management, since their total control and, accordingly, management is impossible. Therefore, it is necessary to focus only on those relationships, leading to NB formation.
Systems approach characteristics to nation branding
Approach Approach characteristics
Linear (traditional) Vision of individual parts. Vision of linear cause-and-effect relationships. Vision of static elements. Applying obvious solutions that are closest to the situation. Focus on immediate response
Systems Vision of the whole. Vision of relationships. Vision of dynamic processes changing over time. Vision of the true systemic causes. Accounting for system response delay
Systems (to nation branding) Vision of the whole nation brand, but understanding of its parts. Vision of the relationships that result in the nation brand formation. Vision of external and internal dynamic processes changing over time. Vision of systemic causes influencing system outputs. Optimal response taking into account system response delay
Source: [Bertalanffy, 1968; Churchman, 1971; Skarzauskiene, 2010].
One of the most common models, which is based on the principles of a systems approach, is the McKinsey 7-S framework. The 7-S model represents seven interrelated variables that influence each other: strategy, structure, system, staff, skills, style, shared values [Kaplan, 2005]. In addition, this combination of elements provides a systemic view, allowing the analysis of activities not in parts, but at the level of the entire system. As part of the systems approach to nation branding, 7-S can act as a tool for analysing the structure and operating principles of the NB management system, and can also be used by any participant in management processes. We are going to consider the elements of the 7-S model within the NB system.
Strategy. An organisation takes into account the NB strategy. At the same time, achieving a competitive advantage in the market can be based on the use of NB meanings, values and priorities of the country, since these ideas will be key ones for it by any means. An important part of an organisation's strategy should be devoted to interaction with employees: since it is about NB, the meanings, uniting an organisation's strategy and NB must be understood and supported within an organisation.
Structure. The most relevant structure will be formed depending on the activity type of an organisation, its strategy, and composition of divisions. However, due to NB specifics, it is necessary to distinguish a division that will act as a control one, bringing into compliance the NB meanings and activities of an organisation. This division must have easy access to senior management, since nation branding processes involve the creation of situations that need to be responded to quickly.
System. The day-to-day processes, procedures, workflows and decisions, helping an organisation function continuously, are traditionally embedded in the logic of key goals and priorities. An organisation's management systems should not contradict part or all of NB meanings. Systems help to carry out standard operations continuously, which are what NB should help with, since the list of potential partners expands due to meanings. On the other hand, NB imposes a restriction, since following national interests presupposes the rejection of those decisions, markets and organisations that a country does not support. However, these restrictions are most often introduced at the legislative level, so they have to be taken into account.
Staff. Regardless the size of an organisation, as long as employees are motivated, well trained in their job responsibilities, and committed to achieving goals, they can implement processes continuously and smoothly. At the same time, NB meanings are possible to use as part of staff motivation (e.g., supporting national values through a common cause).
Skills. It is necessary to constantly develop those employee competencies that directly influence the core activities of an organisation. Nevertheless, NB makes adjustments, affecting employees' training in those NB meanings that are included in an organisation's strategy. All staff should be familiarised with the concept and peculiarities of conducting activities within the nation branding, the relationship between the organisation and NB, and why an organisation is pursuing this approach.
Style. The style of relationships within a company is built purposefully or spontaneously, but by any means it should contribute to an organisation's advancement towards achieving its goals. In a traditional situation, the style is adjusted by the brand. In the case of the NB system, it is necessary to establish consistency with the meanings that an organisation uses in its strategy.
Shared values. Shared values can directly influence the behaviour of employees and management of an organisation. They can be formed spontaneously or come from management or employees. In the context of NB, a value system should be created purposefully, since it is necessary to align NB meanings, the company's strategy and the style of relationships in such a way that they do not contradict each other not only at the level of common sense, but also in accordance with the norms already formed in an organisation.
The original 7-S model does not analyse or consider external elements and their impact on the system [Kaplan, 2005]. At the same time, the external environment has a high significance for NB management. Within the model, external elements are indirectly reflected using the systems approach to nation branding. Through the "strategy" element, integration with external elements take place, since developing a strategy requires their analysis and consideration, as well as understanding of how they can influence the system. The "system" element of the model assumes a connection
with elements external to the system, since implementing the organisation's processes directly depends on its external contour, providing both opportunities and threats to its functioning.
Regardless of what role an organisation plays in the nation branding process, whether it integrates elements, forms the NB identity or maintains communication, an organisation can, with the help of the NB system, determine and formulate an approach to achieve its goal, taking into account the goals of the system. Using the 7-S model, it is possible to structure management activities in accordance with nation branding processes.
Conclusion
The NB has a significant impact on the economic development of a country. The perception of a state determines whether people will invest in companies in a given country, travel, and move to it. At the same time, all participants involved in the NB management process are interconnected: the activities of any element influence the result, i.e., the perception of NB formed among both external and internal stakeholders. The systems approach to nation branding is based on understanding the NB as a system - a set of interconnected elements working in concert to achieve certain goals. The value of this approach for nation branding is associated with the ability to avoid narrowed actions and make decisions taking into account the influence of all system's elements.
NB management, based on the systems approach, refers to the idea of integrity, when elements are interconnected and interdependent, aimed at achieving a single goal. At the same time, the NB system expands the boundaries of its management, providing the opportunity to define, analyse and shape these processes not only for those organisations that are directly involved in the process of creating NB, but also for other market participants that are ready to use NB meanings in their activities.
One limitation of our study is the traditional factor for research on emerging markets, which is associated with the insufficiency of the theoretical base and proven tools for Russian organisations. Russia undoubtedly has the specifics of various institutions' activities, especially when it comes to nation branding. This partially imposes restrictions on the ability to accept the results of studies implemented in other countries. Nevertheless, turning to theoretical foundations is justified within the methodology applied, since it is based on analysis, synthesis and building analytical calculations, which reduces the influence of country specificities.
Future research should be devoted to the testing of the proposed model at Russian organisations which activities are directly related to NB management. In addition, it seems appropriate to test the proposed model at key private companies and state corporations in Russia that shape the country's image abroad (for example, Rosatom, Gazprom, etc.).
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Information about the author
Olga A. Kusraeva, PhD (Management), Associate Prof. of Marketing Dept. HSE University, Moscow, Russia. E-mail: o.kusraeva@mail.ru
© Kusraeva O. A., 2024
