Developing inter-regional brands

Purpose – The contribution of the present research and aim of the present paper is a provision and discussion of eclectic
interdisciplinary concepts constituting a body of knowledge for developing and managing inter-regional brands, hence contributing to
closing the scientific gap as to an inter-regional brand development conceptualisation.
Design/methodology/approach – The research method used was a case study, targeted to develop an understanding of a neglected
academic field. Based on a documentary analysis, semi-structured in-depth interviews were conducted and interpreted. The InterReg IIIB-
supported RegioMarket project and a case study on Liechtenstein provide the background for the project.
Findings – Based on an extensive literature review, the present paper states that interdisciplinary theoretical development of the
concept of branding has not kept pace with the increasing practical application of the branding concepts in a variety of sectors leading
to application gaps and dissatisfying results. Representing the ultimate level of complexity, the development and management of inter-
regional brands crossing nations and cultures currently lacks any empirically researched systematic theory. Following the exploratory
stage, an initial conceptualisation is presented to bridge the scientific gap as to the development of inter-regional brands.
Research limitations/implications – The major limitation of the research is that it focuses on only one participating region. Hence, the
initial conceptualisation needs to be validated in other participating regions. A further limitation refers to a lack of research on the
specific influence of SMEs on the success of the development of inter-regional brands.
Originality/value – The discussion interlinks the interdisciplinary concepts of branding, perception, region, leadership, culture and
identity and provides an initial conceptualisation so far not identified in the field of inter-regional branding.
Keywords Brands, Brand management, Geographic regions, Liechtenstein
Paper type Case study
Introduction
Due to its success in attracting factors of production, the concept of branding has experienced a significant
extension to a variety of applications.
In an international environment, characterised by increasing competition for more brand-sensitive, mobile
segments and markets, branding is seen as the competitive panacea for consumer products, services, industrial
goods and corporate brands, including not-for profit organisations, political parties, governmental initiatives,
internationalisation strategies and, more recently, for cities, regions, nations and cultures. A thorough current
literature review, however, indicates that the conceptual development could not sufficiently keep pace with
practical applications, leading to dissatisfying results. Moreover, the concept has been applied to more complex
and interdisciplinary fields while still being in an under-researched stage as to aspects of marketing and
international marketing representing its major fields of commercial

application. While being in the maturity stage of its development in the field of consumer products, the concept lacks
empirical research on services and industrial goods, definitional consistency, i.e. on destination image and
destination personality (Hosany et al., 2007), and on international branding and its integration into the
international marketing framework (Whitelock and Fastoso, 2007). The understanding of branding and its key
determinant factors are regarded as a prerequisite for expanding on place branding (Green, 2005). Green (2005, p.
279) confirms the still existing challenges when applying the branding concept to place branding, highlighting the:
.. . limited understanding and diverse opinions on the role of branding, difficulties associated with communicating benefits of
intangible or hard to measure qualities, an often extremely matriX,
the challenge of defining differentiated and appealing
propositions and the challenge of developing an implementation strategy that will be widely and consistently adopted beyond
conventional logo and ad campaign applications.
Research integrating sociological research on, for example, geography, urban planning, culture and identity
(Hankinson, 2007; Simeon, 2006; Palumbo, 2000; Cayla and Eckhardt, 2007; Kokosalakis et al., 2006; Green, 2005;
Nalebuff and Brandenburger, cited by Simpson and Bretherton, 2004) with academic work on retailing and tourism
marketing (Hankinson, 2007; Jamrozy, 2007; Kerr, 2006) is in its embryonic stage. To cater for the increased level of
complexity, Kerr (2006) differentiates between location branding (top management responsibility) and destination
branding (middle management and mainly marketing responsibility). Taking the interdisciplinary character of the
networking between diverse partners into consideration, the suggestions of Kerr (2006) and Hankinson (2007),
which are not yet grounded in empirical research, to base the management of locations on the concept and
experiences gained from corporate branding seem questionable. Especially in the field of destination branding,
existing gaps reflect the flawed applications of an under-researched theoretical body of knowledge. Kerr (2006)
calls for a reform of the role and structure of destination marketing organisations (DMOs) to increase efficiency and
points to only a limited application of marketing components to tourism (i.e. promotion), the adoption of societal
marketing, a missing focus on markets and segments compared to administrative efficiency, a lack of extension of
locations beyond governmentally set boundaries and a lack of consideration on the supply side when marketing
destinations. In addition, Simpson and Bretherton (2004) illuminate the detrimental influences of idiosyncratic
entrepreneurial behaviour (SMEs), i.e. the characteristics of independence on networking activities when branding
leisure destinations. The authors, however, regard the role of SMEs as being crucial for delivering the promises
created by the brand image, which is seen as the basis for the evaluation of the experience by visitors (Kokosalakis et
al., 2006). A review of the place branding literature led Hankinson (2007) to complain about a lack of literature on
 managing the branding of places. In line with Kerr (2006), Hankinson points to potential difficulties for destination
marketing organisations (DMOs) when managing destination brands due to a small number of core staff, tightly
controlled budgets, and having no line authority over their organisational partners. Some authors also address the
varying degrees of success of city branding (Hankinson, 2007; Kokosalakis et al., 2006). The status quo of a lack of
unanimously agreed upon theory culminates in Jamrozy’s (2007) call for a paradigm shift towards a focus on
increased levels of quality of life compared to exclusively economic benefits. Compounding the matter, so far, the
literature lacks empirically tested concepts to develop and manage inter-regional brands reflecting increased place
co-operation across nations and cultures to provide for synergistic opportunities.
The rise of destination and location brands
The application of the branding concept to destinations and locations reflects the issue of regionalisation that is to be
understood as closer co-operation and integration of often marginalised, communities, cities, regions or neighbouring
countries aiming at creating a synergy of competitiveness factors utilising the richness of diversity and overcoming
budget constraints. In this way, the local actors intend to influence global processes more strongly and more
concertedly from a local perspective and initiative. Consequently, since the late 1990s many destination brands
have been created in order to enhance competitiveness (Erm and Arengu, 2003; Hall, 2003) and to promote
business sectors such as tourism (Meyer, 1999; De Vicente, 2004) to achieve regeneration and economic development
and develop a higher level of quality of life (Green, 2005).
The EU’s intention to foster interregional activities, i.e. in the “Alpine Space”, aiming to develop an inter-
regional brand represents the starting point for the present paper.
Referring to Kotler et al. (1993; cited by Kerr, 2006) regarding the success of destination brands, Kerr (2006, p.
277) holds that “only ‘a favoured few’ enjoy continuous and strong growth”. The increased level of complexity to
develop and manage place or location brands is indicated by Anholt’s definition of place branding (cited by Kerr,
2006, p. 278):
. . . the practice of applying brand strategies and other marketing techniques and disciplines to the economic, social, political,
and cultural development of cities, regions and countries.
The following definition of destination branding provided by Ritchie and Ritchie (1998, cited by Kerr, 2006, p. 277)
reflects its exclusive marketing focus and, hence, a lower level of complexity:
. . . a name, symbol, logo, word or other graphic that both identifies and differentiates the destination; furthermore, it conveys
the promise of a memorable travel experience that is uniquely associated with the destination; it also serves to consolidate and
reinforce the recollection of pleasurable memories of destination experience.
The following section provides the relevant theoretical concepts, which are internally consistent for the
development and management of inter-regional brands.

Branding, perceptions and culture

The definitions of branding (i.e. Wilson and Gilligan, 1997; Hankinson, 2004; Kotler and Keller, 2006; Kerr, 2006;
Aaker and Joachimsthaler, 2000) highlight differentiation and identification as important results of branding.
Hankinson (2004) identifies four main streams of brand conceptualisation, referring to brands as:
(1) communicators;
(2) perceptual entities;
(3) value enhancers (brand equity); and
(4) relationships.
The brand is comprised of associations representing the values the brand reflects as well as promises to customers
(Kotler and Keller, 2006; Kirchgeorg, 2005). The image of the brand, whether positive or negative, is derived from
these associations. Culture is regarded as a concept influencing the perception and preference of brands as well as
the loyalty of brands. Relating products, images and activities of the brand to the nation’s popular culture, twinned
with increasing the experience with it, this popular culture is regarded to increase the preference and positive
orientation towards the related brands (Simeon, 2006). Moreover, Hofstede’s cultural categories are seen as
influencing the level of customers’ innovation and brand loyalty (Palumbo, 2000). The perceptions of visitors have
a bearing on attempts to regenerate the local economy representations of local cultures, i.e. quality food product
industry (Burnett and Danson, 2004; Dimara and Skuras, 2005) or delicatessen products (Wechner and Kaufmann,
2006).
Region
The term “region” is often defined ambiguously depending on the writer’s perspective.
siX
perspectives of regions referring to geographical,
political, historical, economical, socio-cultural and ecological contexts. Schwedka and Balderjahn (quoted in Meyer,
1999) add that regions develop independently of land or city boundaries and endure.
Kirchgeorg (2005) distinguishes region brands from regional brands as the latter are limited to a specific geographic
area and the promotion of the regions’ specific products or services, whereas region brands promote the overall
product or service bundle of a region. In this sense, Cayla and Eckhardt (2007) note that very little research has
been dedicated to regional branding. Dealing with the heterogeneity of the Asian region, Cayla and Eckhardt (2007)
refer to newly created regional positioning, e.g. newly found pride, rather than on capitalising on cultural heritage due to
negative country-of-origin perceptions.

Peculiarities of region brands

Based on the above discussion a definition of the term “inter-regional brand” is provided. For the purpose of this
research an inter-regional brand is defined as a name which fosters the differentiation as well as identification of an
entity, which has a great deal in common with joint values or heritage and which is not limited to national borders in
order to promote a particular product/service bundles of the regions.
Figure 1 reflects the complexity and multi-layered factors of an inter-regional brand: not only do different
stakeholders with different interests have to be taken into account, but also different languages and identities
influencing relationship building and communication styles.
In contrast to consumer products, the products of a region are “multi-functional” and complex (Hankinson, 2005,
p. 25). The offers might range from historical buildings, innovative products, shopping facilities for local consumer groups
or those with special interests (Ashworth and Voogt, 1990, cited by Hankinson, 2005).
Although there are some similarities between regions and products/companies, fundamental differences exist,
which necessitates a different strategy in order to pursue a successful branding policy. A region brand requires a
higher level of integration of all relevant stakeholders since they all represent the region (Kirchgeorg, 2005). An
exclusion of one or another party, e.g. SMEs or SME associations (Simpson
 Figure 1.
Factors shaping an inter-region brand

and Bretherton, 2004) may lead to annoyance of these parties and defiance (Meyer, 1999). This, in the first place,
may result in negative effects for a successful implementation of the brand, and, in consequence, to negative
evaluation of the brand experience by the visitors who might perceive a dichotomy between the brand image and
its actual delivery.

Leadership
The process of developing an inter-regional brand requires endurance from all persons involved until a common value
basis for both the co-operating team as well as the commonly perceived brand values is achieved. Hankinson
(2007) refers in this context to the diffusion of the brand charter. Besides, relationship problems or a lack of
appreciation of the opportunities provided by relationships might endanger the project. In such a situation, a
charismatic person is needed who can persuade all partners to carry on and to highlight the mutual benefits the
joint work will entail for all. These considerations imply that the concept of leadership needs to be applied to
location branding. Antonakis (2006) defines leadership as the outcomes between a leader and follower
relationship based on an influencing process. Additionally, the term focuses on the explanation of how this process
is influenced as well as on the context in which the process arises. Antonakis (2006) provides a comprehensive
overview of leadership theories and differentiates between transformational, transactional, instrumental and laissez-
faire leadership. In line with Antonakis (2006), Hankinson (2007) refers to the necessity of visionary leadership
when developing and managing a place brand. Hankinson (2007) refers to five guiding principles when developing
and managing place brand:
(1) visionary leadership;
(2) a brand-orientated organisational culture;
(3) departmental co-ordination and process alignment;
(4) consistent communication across a wide range of stakeholders; and
(5) strong compatible partnerships.

Culture and identity

Each country or even region is distinguished by its distinct culture. Various frameworks have been developed
to understand the various cultures of the world.
43Phatak et al. (2005) provide a summary of cultural concepts referring, for example, to
Hofstede’s five dimensions or Hall’s framework of low and high context cultures.
Several authors point to the internal consistency between the concept of branding and the sociological concepts of
culture and, in particular, identity. Burnett and Danson (2004) hold that identity can be expressed through the
consumers (residents as well as visitors) choices epitomising the ultimate objective of any brand strategy. In this
sense, the identity concept might be applied as the basis for segmentation strategies (Kaufmann, 2005). As
branding of regions is targeting to positively influence relationships, a further correlation with the micro-
sociological concept of identity becomes apparent. This is confirmed by Hankinson’s (2006) suggestion to
communicate a brand identity focusing on both internal and external relationships. Ideally, the branding strategy
should be authentically communicated and lived by all parts of the society. Identity is the result of structured
relationships whereby the relationship roles must be both assigned and accepted (Rosenberg and Kaplan; cited by
Kaufmann, 2004). Identity is not given right from the outset but established over time in interaction. It is closely
connected with emotions, which makes it difficult to objectify (Mar Xer, 2006). Concepts of identity refer to ethnic,
national, and cultural identity as subcategories of social identity (Goffman et al.; cited by Zwahr, 2003), the individual’s
role, character and existential identity (Burke, 1991; cited by Kaufmann, 2004), the individual’s self-concept (Burke,
cited by Reed, 2004) and salient identity (Stryker, 1981; Arnett et al., 2003). Baer et al. (2001) related social identity to
the process of developing brand equity, particularly of high-involvement sports-related service brands. As to
operationalising the branding concept, Reed (2004), in line with Arnett et al. (2003), holds that social identity
cannot only be addressed but, even further, externally stimulated. In conclusion, identity can be considered as the
precondition for branding regions.

Identity reflected in relationships

Compared to the connotation that regions are limited to market, labour and raw materials, a new thinking refers
to regions as a complex of social relationships (Keating, 2001). There is widespread agreement that all relevant
stakeholders of a region are required to build networks, although their objectives are different (Keating, 2001).
These relationships facilitate the generation of new jointly created knowledge or core competences. Furthermore, these
relations and the social identity of the individual influence the process of his/her perception and interpretation and,
consequently, the individual’s action potential. This means that relations are fundamental for the way of thinking
and the self-development of an individual. Relationships are made of trust, continuity or reciprocity. These are
factors which are also crucial for the successful development of a brand. Both brands as well as relationships need
time to unfold. The quality of relationships is the key to explaining the identity of a country in terms of the basic
concerns of human relations expressed, for example, in instrumental and expressive behaviour (Romanucci-Ros;
cited by Kaufmann, 1997, 2004).This sheds light on the importance of identity for cross-border inter-regional brands
where the identities of regions and project participants differ. Identity, it is suggested, is the mediating concept for
designing congruence between the brand identity, regional or cultural identity and visitors’ identity or corporate
identity (e.g. DMO and partners).

Case study of the Principality of Liechtenstein

The image of Liechtenstein
As a basis for the development of the Liechtenstein brand a reputation analysis was conducted (MPR, 2002). It was
ascertained that participants from abroad assessed Liechtenstein more positively than did residents. Based on
ranking criteria, the factor “lovely country” was assessed the highest, followed by “low tax rates”, “good
infrastructure”, “beneficial area for business”, and “safe place for investments”.

The identity of Liechtenstein

On 1 July 2004, the new Liechtenstein Brand was introduced. This was, amongst other things, a consequence of
press reports presenting the country as a money-laundering paradise, reflecting a negative country-of-origin effect.
Against this background the concern grew that the brand image of the location of Liechtenstein would suffer serious
and continuous damage.
The new brand enjoyed first successes such as increased users of the official Liechtenstein internet platform as
well as an increase in positive as well as neutral international media reporting on Liechtenstein.
A survey on national identity was conducted by Mar Xer (2006) on the occasion of the celebration of 200 years of
sovereignty of the Principality of Liechtenstein. The objective of the study was to obtain data about the present
identity of Liechtenstein. MarXer (2006) found that the national identity is based on social aspects and attributes of
human beings rather than on stately symbols. The residents of Liechtenstein can be described as “self-confident”
and “striving for independence”. More than 50 per cent of all participants in the survey thought that Liechtenstein
should focus on its own interests even if this would cause conflicts with other countries. On the other hand,
residents described themselves as open, co-operative and flexible. Earlier, an identity audit (MPR, 2002) was
conducted as a basis for the development of the Liechtenstein brand. According to that audit the Liechtenstein
identity can be seen as based on a continuum of conflicting values (MPR, 2002, p. 26). On the one side of this
continuum, the value was “natural” and on the other side, the value was “highly developed”. The term “natural”
reflects the family ties of the respondents. They are uncomplicated and unpretentious regarding personal contacts.
Further, they are affected by the landscape surrounding them. In contrast to “natural”, the term “highly developed”
expresses that the Liechtenstein location is highly diversified and successful. The residents perceived themselves as
a part of an exclusive society. Despite its size Liechtenstein was able to keep its sovereignty and autonomy.

SWOT analysis
A SWOT analysis represents an important means to develop strategic foci. A comprehensive SWOT table was
developed as part of this project (see Table I). The SWOT table is the result of the analysis of different resources
such as Vogt (2002), Kaufmann (2005), Eisenhut (2004), Credit Suisse (2004), Wistawel (2004), Sochin (2006),
 Factors Strengths Weaknesses Opportunities
ThreatsPolitical
cal stability High level of political continuity and stability – constitutional aristocracy
Political framework for sustainable tourism
Rural and urban planning policy

Lack of political influence due to small size

Non-existence of urban planning politics leads to a large volume of individual traffic which impedes efforts towards gentle
environmental handling, a condition that is also aggregated by a growing number of inward commuters

Sustainable tourism
Economic policy Lack of economic policy
Economic
Banking sector Bank secrecy
Private banking knowhow

Worldwide co-operation in the fight against organised criminality

T EMJ
a
bl B 3,1
e

Devel
oping
Factors Strengths Weaknesses Opportunities Threats
inter-
regional
Industrialised Highly industrialised economy and broad diversified industries, enterprises and products
brands
T
a
Internationalisation
b Strong experience with export activities
SMEl internationalisation SMEs are highly
e internationalised compared to the European average
I. 4
SWO
Growth rate of the economy Continuous growth in both
5
sectors 2 and 3. Many new jobs have been created, and will be created in the future

Strong dependency on outside, especially from highly-qualified labour and markets

Tertiary sector is still undeveloped

EXploitation of highly skilled workforce in order to specialise in high-tech research and innovations (e.g. research in renewable
energy as a way to reduce the dependency on other nations). Fostering the international recruitment of highly-qualified people in
order to remain competitive. Advantage: capital should be available
New markets in the extended European Union
Uniting competence, capacities and resources through networks and strategic alliances between SMEs

Worldwide competition also leads to advanced qualities of product and service development in emerging and developing countries,
resulting in those countries that have high costs falling back

Frequent lack of international management experience

Education of workforce in order to enter into markets that promise good rates of return
Employment rate Scarcely 50 per cent of the women in Liechtenstein are employed
compared to Switzerland and Germany
Increasing the gross activity rate among women
 Factors Strengths Weaknesses Opportunities Threats

Housing prices Scarcity of land leads to high

land
prices for
buildings.
The same
can be
found
with rent.
An end to
this
developm
ent is not
foreseeabl
e in the
short term
Competition Lack of networking The lack
of use of
networks
can lower
the
competiti
veness of
companie
s in a
global
world
which
requires
skills or
abilities
that a
company
normally
cannot
possess
all of
Currency stability The strong Swiss currency benefits from high confidence worldwide
Strong dependence on external developments which cannot be
influenced

Social
Social vicinity Brings the advantage of short official
channels. Decision-makers are
accessible
Workforce Lack of skilled workforce Increasing employment rate amongst
women

Worldwide practice international recruitment of highly-qualified persons

Changing demographics Favourable age structure
leads to the national economy of Liechtenstein being less burdened than, for example, the Swiss
national economy
Decline in birth rate Worldwide trend towards an older population

(continued )

Devel
oping
inter-
T
a
regional
bl 4 brands
e 7
T 4 EMJ
a
bl 8 B 3,1
e

Factors Strengths Weaknesses Opportunities Threats

Education Low education level of
residents,
especially
women
Values and norms Diligence and the virtue to work
Lack of environmental awareness can be observed

Technology
Information technology New technologies provide
better tools to analyse customer behaviour

New technologies cause a reduction in staff (in banking sector)

Infrastructure Liechtenstein is well linked to the Swiss and Austrian motorways
Despite its own bus network, public transportation in Liechtenstein is
less well developed

Environmental
In general Research in renewable
energy

Oil scarcity

Legal
Taxation laws Low tax rates characterise the main advantage of the Liechtenstein location

EFT/EWR laws

Corporate law Liberal corporate laws facilitate the formation of companies with a focus on succession planning

Trend to double tax treatments

Investment in reseach and development, especially in technologies that are based on highly-qualified labour

Trend to tax harmonisation at EU level and worldwide; other countries adjust their tax rates
EXternal pressure as to international legislation

General

Lack of mass problems such as environmental pollution

 Schengen Agreement Fragility of image due tomajor incidents (money laundering)EURES
Bodensee (2006), SAENTIS
Investment AG (2005), Solargenossenschaft Liechtenstein (2006) and MarXer (2006), as well as public
data available at www. liechtenstein.li and www.llv.li and provided by the Office of Economic Affairs.
In line with the SWOT table derived from literature sources, the interview findings show that the main
strengths but also the weaknesses of the Principality relate to the size of the country, as reflected by seven
statements (autonomy, missing critical mass and own resources, dependency, settlement policy). Furthermore,
“nature” and “landscape” as well as “finances” and “diligence” were mentioned as strengths and “satiety” as a
further weakness. Regarding opportunities, the “Schengen Agreement”, “strategic alliances and networks of small
firms” as well as “double taxation agreements” could be identified. “Oil scarcity”, “a trend towards an older
population” and “international competition for highly skilled workforce” were identified as threats.
Research aim and objectives
The aim of the present research was to identify and test the relevance of concepts for the development of an
inter-regional brand to close an existing scientific gap. The research objectives were to assess the attitudes of the
various stakeholders towards such a cross-border challenge. A further research objective was to understand the
interdisciplinary factors perceived by potential stakeholders to be fundamental for the development of such a model
and to suggest an initial conceptualisation.
Methodology
Following the suggestion of Cayla and Eckhardt (2007), an exploratory qualitative case study was used to
develop an understanding of a field which, so far, has not received sufficient consideration in the literature. Applying
an interpretative approach, in-depth interviews (Diekmann, 2005) were conducted and interpreted to develop an
initial conceptualisation. In-depth interviews aim at obtaining information about the interviewee’s point of view,
feelings and perceptions. They can be separated from regular interviews in that they possess some special
characteristics such as open-ended questions, a semi-structured format, and an emphasis on understanding and
interpretation (Guion, 2006). In addition, a documentary analysis was conducted.
It was assumed that this method would provide a richer data set than a quantitative approach (Salkind, 2006).
Applying purposive snowball sampling (La Verda and Teta, 2006), the interviews were conducted with eight
relevant regional actors in Liechtenstein with a variety of backgrounds that took into consideration professional
and personal experiences (see Table II). The interviewees were

Sector Post

Public Director of Government Spokesperson’s Office Private Managing

director of a power station
Public Head and co-worker of the energy department
NGO Managing director of society for environmental protection
NGO Managing director and co-workers of international commission for the protection of the Alps Private Member of the
Management Board in the building and construction sector
Private Managing director of banking association
Public Managing and vice managing director of Tourism Office

Table II. Participants in the in-depth interviews

identified through databases or personal contacts at the University of Applied Sciences Liechtenstein.
The in-depth interviews took place during July and August 2006. The semi-structured interviews
included several parts (sets of questions). The first part consisted of obtaining views to develop and
implement a cross-border brand. The next part was concerned with obtaining data about the interviewees’
own experiences with brands. A further questioning complex was intended to determine whether any kind of
co-operation existed, and, if so, whether it was successful. Next, the interviewees were asked if they could
imagine participation in an inter-regional project and, if so, under what conditions.
The final question referred to the strengths and weaknesses of the Principality of Liechtenstein from
the perspective of the interviewee.
The interviews took about one to one-and-a-half hours. Tape recording and literal writing were used to
record the data. Concerning the literal writing, the post processing of the questionnaire occurred right after
the interview.
The interviews were transcribed before content analysis was carried out. Content analysis deals with
the systematic analysis of texts, pictures and movies (Diekmann, 2005). The process of content analysis
can be divided into two approaches:
(1) inductive development of categories; and
(2) deductive application of categories.
The inductive approach focuses on a systemic reduction process, whereas the deductive approach
highlights the comparison of theoretical concepts with the material given (Mayring, 2000). For the purpose of
this study the deductive approach was chosen following the content analysis procedure suggested by
Colorado State University (2006) and, in addition, applying the hermeneutic circle (Goller, 1999).

Empirical results
The software MaxQDa2 provided the authors with the code-matriX shown in Figure 2. The size of the
square indicates the relevance of the category or sub-category for the interviewee, which was derived
from frequency of mentions. Based on this matri X, predefined as well as new categories were
elaborated.
Attitudes towards the development of a cross-border brand
A partial lack of acceptance of the Liechtenstein brand still exists. The concrete advantages and
benefits it will provide for the individual are not yet sufficiently diffused. Furthermore, a need is evident
to explain the difference between the communication appearance of the sovereign and the communication
appearance of the Liechtenstein brand (coat of arms versus brand logo).
These instances may have led to the impression that the intension to develop a brand is considered
rather negatively. One respondent said:
The umbrella brand Liechtenstein is negatively set which explains the negative attitude to the development of
further brands.
Another respondent added:
There exist too many brands of which no benefits can be expected.

It can be argued that although many brands already exist, a clear value positioning and increased awareness
still seem to be lacking. The reason for this might be seen in possibly insufficient brand build-up in the launching
stage. This refers especially to the agreement upon and efficient communication of the brand values as confirmed
by several interviewees.
One respondent remarked:
Very often, a problem is how to transport the brand’s attributes and values to the customers.
Another respondent stressed that:
A strong precondition is that the brand may not impose itself.
 A further interviewee stressed that:
You must know exactly what you want with the brand and internally agreement must prevail on that [.. .] The
brand must cause greediness. The people stand in line to be thereby, it has to be desirable. However, on the other side,
it may not impose itself.
Referring to the development of a cross-border brand, one respondent from the public sector noted:
An inter-regional umbrella brand has to cater for several challenges such as stakeholders,
countries, regions, which, at a first glance, seems impossible due to heterogeneity.
However, especially then, a common umbrella would be of great importance.
Commenting on knowledge of cross-border activities she continued:
I do not know it from the literature. In practice, I can say that in the context of the International Lake Constance
Conference one tries to develop a Lake Constance Brand. How far they are with their studies/research I do not know,
I only know it is very tough, because the different regions, countries finally insist on their own brands. Within
Switzerland one tries to develop a canton-exceeding brand, tourism brand, etc. and that is crazy difficult.
Another respondent from the private sector referred to positive aspects of an international
positioning:
I like the cross-border orientation which I see is of great relevance for the financial institutes. Especially, the banks
are aware of the smallness of the country and, hence, are internationally or inter-regionally positioned.
An interviewee coming from public sector, however, commented on the challenges of cross-border
activities:
You have to consider the differences existing in Vorarlberg [Austria] and Switzerland in a so close geographical
area regarding what is going to be a success or not. With more countries involved it becomes naturally more
difficult.
Later he added as to authenticity:
Per se, that is surely a good idea and it depends naturally on what is made out of it and how it is actually lived.
The statements highlight the difficulties that the development of cross-border activities will entail due to the
heterogeneity and complexity of objectives, not only of supra-regions but also of individual partners.
Relevant stakeholders
The respondents regarded the involvement of all relevant stakeholders as important. This is reflected in the
view that:
It is important that all relevant stakeholders are requested for their opinion and support. This was missing with the
development of the Liechtenstein brand regarding the bank’s view.
The respondent added:
I see a strong correlation between politics and the economy. If politicians are participating in the project I expect a stronger
participation from the economy.
In the same vein, a respondent from the public sector said:
It is important that persons involved join in the conversation.
And another person from the public sector commented:
Especially, in the preparation of such a project it is important to talk to many persons in order to get a feeling of what is
behind.
These statements imply the paramount importance of identifying and convincing key
stakeholders in order to increase the willingness of other reluctant but relevant parties.
Co-operation
The participation of different stakeholders entails a need for co-operation. Especially, interviewees from NGOs
would like to foster contacts with other stakeholders, mainly from the private sector. One respondent said:
We [the NGO] regret very much that we have only few contacts to the economy. We would appreciate it if we could
intensify and strengthen these contacts.
Other respondents were more reluctant concerning the term “co-operation”. One respondent from the private
sector stressed:
I cannot imagine a joint action of the Liechtenstein’s companies due to envy and the high level of competition existing
amongst them.
Several respondents confirmed the detrimental influence of the perceived enhanced rivalry. One respondent
pointed to integrative management approaches and emphasised that an earlier co-operation in the service sector
failed due to “weak management”. However, a respondent from the public sector stressed:
We can rely on a very good co-operation, although frequent frictions exist.
A respondent from the public sector argued:
A great competition rules amongst the enterprises [.. .] which leads to a lower level of self-initiative. The thought of 1 þ 1 being
more than 2 is not common yet.
However, a respondent from the public sector held that “a common interest or need fosters co-operation”, and
this was confirmed by an interviewee from the public sector, who said:
As the financial market crisis has already shown, if the situation exists to be neck or nothing, they [entrepreneurs] hold
together.
Concerning the willingness to participate, the primary research implies that the interviewees appreciated the
idea of co-operation, but the willingness to participate seems to be minor, as does the willingness towards self-
initiative. The latter highlights the importance of leadership in order to overcome the discrepancy between strategic
and operational decision makers. An interviewee from the private sector suggested:
Some actors need the sign of other actors such as from the public level in order to follow.
However, an interviewee from the public sector said:
We can not initiate it.

Differing attitudes between the public and private sector as to co-operation become apparent.
Co-ordination
Due to the character of rather informal exchanges of information, several uncoordinated activities are
conducted in different areas, such as the energy sector. This assumption was supported by the empirical findings
reflected by the statement of one respondent from a NGO:
There is a high demand for a stronger co-operation.
A respondent from the private sector confirmed this view:
The co-ordination and co-operation have to be improved in Liechtenstein. Anyone is doing anything. There are
lots of activities but no co-ordination.
A further respondent dealing in the service sector added:
Currently, there are no co-ordinated activities in the service sector but rather particularities of individual participants.
A representative of a NGO held that:
In particular, the co-ordination of the different efforts of individual participants should be improved.
These statements clarify the detrimental consequences of a lack of co-ordinated activities or co-
operation on common objectives.

Communication
Considering the importance of co-operation or co-ordination, it is surprising that the term
“communication” was not seen as very important for the successful implementation of projects in general
or inter-regional projects in particular among the interviewees.
It can be concluded that there seems to be a lack of awareness of the influence of the communication or
the ability to communicate the project.

Leadership and organization board

Referring to the leadership of the project, a respondent referred to his own experience:
For me, the lead-partner is very important. I believe that the co-ordination, the management, as well as the lead
itself are of great importance regarding the process of such a project.
Another respondent stressed:
The success of a project in general depends on the leading part and its management.
The process to develop a brand needs endurance of all persons involved. And some setbacks may
threaten the project, especially when the individual partners do not see the opportunities of
relationships. In such situations a person is needed who is able to persuade all partners to carry on
and to highlight the benefits the joint work will bring to all. Referring to the inter-regional brand,
it is suggested that a form of transformational leadership fosters the well-being of the project.
Regarding the issue of the size of the organization board, one respondent suggested:
We are working in a commission which currently consists of 13 partners. Maybe, you can imagine, how difficult it is to find a
common consensus. This is the reason why we have considered [.. .] the reduction of the commission [.. .] to five members the
maximum, in order to be authorized to act, to react constantly and to be flexible.
A respondent who was also working in this commission shared this view:
A reduction of the parties involved would also be worthwhile to be considered, since less would surely mean more.
These statements imply the importance of decision-making processes based on consensus, which come to the
fore when dealing with different stakeholders and different opinions. Finding a consensus is seen as very difficult in
general and in large boards in particular, and even more difficult in a cross-border project. One respondent
proposed:
Routine-tasks should be independently executed by the board.
An interviewee with their own past experiences in brand development referred to certain managerial values,
highlighting the terms “care”, “consequence” and “continuity”:
During the implementation of the project one proceeded with the utmost care, which was in my opinion ideal for a
successful conversion of the project.
Regarding the success of branding activities she added:
I must say, it is a success because we, that is one of the reasons, because we were unbelievably consistent. Thus,
with a probably unrivalled staying power, we simply pulled this red thread through. Because we did not make a big story out of
it, instead, this consequence and continuity were impressive.
This statement might be seen as debatable taking into account the aforementioned criticism as to imposing
views on members and the importance of consensus.
 Identity
When developing the Liechtenstein brand the importance of the identity concept was identified and applied.
This is reflected in the logo of the Liechtenstein brand linking the symbols in the form of letters with perceived
identity elements of the Liechtenstein location. One respondent from the public sector who was dealing with
branding on a professional level referred to identity:
The umbrella brand represents a communication identity, which comprises the identity of the human beings, the customs. That
is identity or a part of identity and that won’t be taken away, this is very important to see. That remains and is maintained.
This was the only exact statement referring to the term, indicating that the respondents seemingly were not
aware of the concept of “identity” and its role or function within the brand building process, pointing towards a
possible reason for the failure of such projects. This is also reflected by statements lamenting a lack of
consideration of the quality of internal and external relationships of the Liechtenstein brand.
Regional focus
Analysis of the interviews highlighted a strong regional focus, which represents a contrast to cross-
border co-operation intentions. A respondent from the private sector said:
The regional focus is important [.. .] Our product logo refers to this very well: the abbreviation Li allows the
inclusion of Liechtenstein as well as the national colours red and blue and a reason for success is the local focus.
This respondent further remarked on the negative consequences of over-emphasising local
perspectives:
As far as I am concerned, the residents of Liechtenstein have a problem when countries such as Germany or
Switzerland are involved. The focus on Liechtenstein is coming to the fore.
The strong local focus of the country is further confirmed by a participant from the public sector, who
commented:
There had been intentions to transfer very successful stories from abroad such as the “Do it yourself solar
systems” from Austria. However, one activity in Switzerland in this context failed. This shows that despite the
proXimity of the countries involved other differences exist which are relevant for the success or failure of a project.
A respondent from the private sector stressed:
The brand should create a balance between international and local focus.
It can be concluded that a strong local focus could hamper co-operation on an international level. In
particular, operational decision makers (i.e. companies) in Liechtenstein are advised to embrace a
stronger international orientation, also implying a higher level of inter-regional and international co-
operation.
Measuring and controlling success
As discussed previously, controlling the success of branding activities is regarded to be of great
relevance. One respondent said:
We use quantitative gauges such as turnover to assess the success of the brand.
A second respondent commented on soft factors:
Qualitative factors such as reputation and credibility are difficult to measure. We conduct, for example, press
release comparison.
A further respondent from the public sector said:
The controlling of success is very important. In order to keep something alive you need control, and not only
control but also measures for improvements.
For the rest of the interviewees the controlling aspect seems to be of no great relevance, since no one
mentioned it. Since branding focuses on qualitative as well as quantitative factors, it is suggested that a
combination of qualitative and quantitative measures should be used.
Conclusion
Despite the great importance of place branding, the focus in the literature so far has been limited to national
borders. The analysis reflects that the development of an inter-regional brand in Liechtenstein was perceived
rather reluctantly in general. This can be explained by the situation that the new Liechtenstein brand was
introduced recently, which is still suffering from only modest acceptance. Successful inter-regional brand development
necessitates a more serious accounting of transformational and instrumental leadership. The analysis also reflects
the difficulty of aligning a multitude of existing brands under an umbrella brand. The impression arises that
opportunities for co-operation have not been clearly and convincingly communicated, leading to brand diffusion
and a self-initiative gap. A lack of a priori involvement of all partners involved might threaten their authentic brand
behaviour, which, in turn, might lead to inconsistent evaluation of the location experience by the visitors.
In Liechtenstein, a strong local focus predominated, which could make it more difficult to develop an inter-
regional project. Although considered at the outset of the Liechtenstein brand development, the application of the
identity concept to the improvement of internal and external relations is strongly recommended. The study
supplied valuable information on the relevant concepts that should be taken into account in order to increase the
success of such a brand building process. The study has also shown interdependencies between individual
categories.
This present paper contributes by narrowing the scientific gap as to inter-regional branding, suggesting an
interdisciplinary body of knowledge and an initial conceptualisation. Hence, the research aim has been achieved.
In terms of transformational leadership and instrumental leadership competences, it is interesting that some
emerging categories matched Hankinson’s (2007) model and guiding principles, which were published after the
case study was conducted. The present model appears to be valid, although it is suggested that a higher level of
complexity of inter-regional brands needs to be taken into account, and additionally the sociological aspects of culture
and identity need to be embraced. The reference to identity should include aspects of national, regional or ethnic
identity, as it is seen as the mediating concept for the creation and maintenance of efficient internal and external
relationships by a coherence of brand, national or regional, visitor or corporate identities. It is suggested that the current
model needs to be validated in other member countries of the project in order to strengthen the research base and
enhance both theory and practice in the field of location branding. Such a strategy will also address the major
limitation of the present research: the focus on one participating region only. Hence, the initial conceptualisation
should be validated with other participating regions in order to strengthen the research base and enhance both
theory and practice in the field of location branding. A further limitation is to a lack of research on the specific
influence of SMEs on the success of the development of inter-regional brands as they, to a large extent, fulfil the
brand promise in daily interactions. As the application of sociological concepts implies the satisfaction of other
than exclusively economic benefits, Jamrozy’s (2007) suggestion of a paradigm shift seems to be an additional
interesting field for further research.
The literature review and the results of the empirical findings have led to the initial conceptualisation shown in
Figure 3 for the development and management of an inter-regional brand. By following the various steps provided
by the conceptualisation,
practitioners might be supported in designing and implementing the development of inter-regional location
brands. This refers especially to the integration of the identity concept at different stages of the brand
development process, eventually by the inclusion of external experts, and better transformational and instrumental
leadership. Consequently, opportunities for co-operation can be more clearly and convincingly communicated and
the self-initiative and commitment of the partners increased.

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