The purpose of internal communication is essentially the same for firms in developed countries and firms in developing countries: inform, educate, persuade, and stimulate an appropriate and timed response from internal stakeholders (McKenna, 2012). What is communicated, and how, where, and when it is so communicated should not be left to chance. However, effective internal communication is not an easy task, especially when the company and its employees are from different contexts.
According to the study of Bakar and Mustaffa (2013, p. 87), “One of the most difficult
challenges for the field of organizational communication is the applying of theories and models developed in one part of the world and to understand a phenomenon that occurs in another part of the world.” This means that internal communication is management theory, and they must acquire knowledge of diverse business environments in order to achieve successful internal communication. Similarly, various authors (e.g. Akaah & Riordan, 1988; Cui et al., 2006; Frimpong & Wilson, 2013; Tsui, 2004) have recently recognised the importance of more context specific research in the business management literature.
With an increasing interdependence of the world economies, the importance of doing research in the subject of marketing in the developing countries is warranted form both business managements and marketing researchers (Akaah & Riordan, 1988). According to Akaah & Riordan (1988), the rationale for applicability of marketing knowhow in the developing countries becoming a management issue is that the context of the developing economies is changing from the context of sellers’ market economies into buyers’ market economies. It means that business managers in the developing countries recognise the marketing strategies necessity of reaching out for a brand to differentiate their offering and gain a competitive advantage that resists replication. However, the most current status of marketing knowhow works by researchers in the U.S. and Western European countries and the discipline were found to lack applicability of marketing knowhow in the developing
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economies (Akaah & Riordan, 1988). Akaah & Riordan (1988) suggest that applicability of marketing knowhow in the developing country is important to support a relatively high level of performance of marketing activities in the developing country.
The study of Tsui (2004) suggests that building management knowledge by researchers in the U.S. and Western European countries can be accrued to yield economic benefits to their countries because the development of management knowledge is regarded as a major key success factor, leading to successful business enterprise. Tsui (2004) has considered applying the management knowhow from the developed countries setting into the developing countries setting as major factors of business success in the developing countries because it can substantially alter the underlying casual dynamic of employee-organizational relations. Additionally, the applicability of management knowledge in developing economies has incredible benefits for economic development in a developing economy because it can help the developing countries to increase economic growth in the future. However, the growth of management knowledge literature that occurs in the context of a developing economy does not match that of the needs of business in developing economies as a whole. The business management literature is mostly associated with the U.S. and Western European countries and their focus is on business management research in general and not specifically international management studies for a developing economy (Tsui, 2004).
According to the study of Cui et al. (2006), knowledge transfers from multinational corporations (MNC) to local subsidiaries and they found that the success of knowledge transfer between MNC and its subsidiaries was influenced by understanding the business environmental factors of local subsidiaries, especially in the developing countries that affect the organization. It means that understanding environmental factors in a developing economy can help MNC apply the knowledge transfer to local subsidiaries and enhance corporate performance. Similarly with Tsui (2004) and Akaah & Riordan (1988), they found that a majority of business management studies were conducted in a developed economy
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especially in North America or Western Europe markets. Cui et al. (2006) have postulated that business management researchers should not be confined only to the North America or Western Europe markets. Instead, they need to conduct research in developing country markets in order to achieve and sustain strategic success via knowledge transfer between MNC and its subsidiaries in a developing economy. Moreover, Cui et al. (2006) suggest that conducting research in developing country markets can be considered as an opportunity to extend applications of the business management theory under study to a non-developed market. The results of the research can offer initial insights into the influence of business environmental factors on corporate performance and provide concrete directions for managerial guidelines in a developing country.
Frimpong & Wilson (2013) have provided evidence to support the importance of conducting research in developing countries. According to the study of Frimpong & Wilson (2013), it was confirmed that the major current business management knowledge is largely informed by insights obtained from developed countries, especially Western Europe and North America, and to a minor extent from developing countries, especially Asian economies. With the focus of business management knowledge on developed country contexts, their business management can create business strategies based on their knowledge of business management literature that ensures an effective product and service delivery, which customers will value. However, Frimpong & Wilson (2013) are concerned about too much emphasis on developed countries’ contexts, without a link to a developing economy. They say that the extent to which underlying theory of business management is relevant to developing countries has received very little attention and needs to be addressed.
In summary, a group of academics (Akaah & Riordan, 1988; Cui et al., 2006; Frimpong & Wilson, 2013; Tsui, 2004) call for more research in developing country contexts into the business management literature.
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This thesis seeks to examine the influence of internal communication on employees’ brand outcomes in the concept of internal branding in a developing country. According to the internal communication literature, this thesis found that this literature is largely informed by insights obtained from developed country contexts and to a minor extent, from developing country contexts. Consequently, the extent to which the underlying influence of internal communication on employees’ brand outcomes in the concept of internal branding is relevant to developing countries, especially, those in Asian economies, which has received very little attention, needs to be addressed.
Additionally, this thesis develops domains of internal communication in the internal branding concept from the CSQ constructs. The CSQ was developed by Downs and Hazen (1977) in a developed country. The CSQ consists of eight major activities and these eight dimensions can be viewed as internal communication tools. Many organizational communication researchers used the CSQ constructs in various countries. Table 3.1 shows examples of these research studies from the literature. However, where such studies have been conducted, they usually examine developed countries such as Australia, United States, and Taiwan. There is a lack of empirical research of the CSQ constructs within developing countries. This means that the extent of the CSQ on the internal branding concept lacks applicability or relevance in the developing countries, and this would suggest the need to re- examine the CSQ of internal communication theory to enhance within developing countries.
The negative effects of a lack of application of the CSQ within developing countries are that they would reinforce its negative stereotyping in developing countries; internal communication activities are viewed with disdain and suspicion in developing countries; and the internal communication in the internal branding concept would exacerbate the difficulty multinational marketers face in formulating international marketing strategies (Akaah & Riordan, 1988). Therefore, understanding and adapting the CSQ as the internal communication constructs to many business environments in other countries in a developing
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economy are key factors for developing the internal communication in the internal branding concept. Additionally, this literature is the best way to gather the internal branding best practices for business leaders in a developing economy.