Country-of-origin effect and firm reputation influence in business-to-business markets with high cultural distance

Italy is renowned around the world for its design, fashion, Mediterranean cuisine and other “Made in Italy”-styled products. These products are often associated with known and famous brands especially in the luxury sector, but many less well-known Italian firms operating in more technical industries, such as in the mechanical or electronic sectors, have a major presence in international markets (Bertoli & Resciniti, 2012; Fortis, 2005). Country-of-Origin (COO) literature is mainly focused on consumer sectors. The amount of literature on the subject in the industrial sector is lower and among theorists, two main research streams can be identified. Some believe that COO has the same importance as the consumer market, while others assert that industrial customers, operating in a more informed way, are less likely to be influenced by it. This present contribution falls within the realm of this debate. While focusing on the importance of COOfor companies operating in BTB sectors, itwas considered appropriate to contextualize this strategic element within marketing and internationalization strategies developed by companies operating in geographically and culturally distant markets. For this reason, we chose a group of Italian companies operating in the Chinese market for the empirical study. In the discussion of findings, particular emphasis will be given to typical elements of marketing mix in BTB, such as the relational aspect and trust. The paper covers the following steps: first, a brief analysis of the literature on COO is provided, with a focus on BTB; then the research methodology is described; after this, findings concerning the marketing and internationalization strategies adopted by firms operating in markets with high geographical and cultural distance are set out and there is discussion of the importance of COO, firm reputation and brand image in the internationalization process; and finally we offer managerial implications, limitations and suggestions for future research.