An Exploration on How Tech-based Innovation could Play Its Role in Guarding against the Undesired Outcome of Ethnocentrism

Abstract

Abstract: A key negative effect of ethnocentrism on enterprises is that it may impair their intangible equity. This study examines the influence of national identity on intangible equity under different consumer ethnocentrism scenarios. We find that consumer-based equity of an intangible is significantly associated with the national identity of origin of the products. In addition, product national identity and tech-based innovation by foreign consumer partially mediates the relationships between national identity and intangible equity. Furthermore, ethnocentrism moderates the strength of the direct relationships between national identity and intangible equity, and it does not moderate the strength of the relationships between national identity and intangible equity via product national identity and tech-based innovation. Our survey to 54 countries and 3,601 foreign consumers illustrates a direct and important strategic and practical significance for managers to implement the intangible strategy of internationalization.

Key words: ethnocentrism, intangible equity, national identity, tech-based innovation, product image overseas

Zhang Sixue, Lin Hanchuan, Tang Fangcheng, Lv Ying. An Exploration on How Tech-based Innovation could Play Its Role in Guarding against the Undesired Outcome of Ethnocentrism[J]. Management Review, 2022, 34(1): 106-117.

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