Originally, brands were used to denote the ownership of cattle (Wang, 2007) or to identify artisans work (de Chernatony and Dall’Olmo Riley, 1998). In the present era brands, and more specifically corporate brands, remain important for several reasons:

(1) They can provide consumers with a way to differentiate the choices available (Vanka, 2011; Wang, 2007).

(2) Brands can aid decision-making acting as a shorthand device associated with various functional and emotional characteristics (de Chernatony and Dall’Olmo Riley, 1998).

(3) If stakeholders trust a brand this can imbue brand loyalty and the development of a long-term relationship with the brand (Goodchild and Callow, 2001; Smith, 2003).

(4) Balmer and Wang (2016), Sevel et al (2018) and Balmer (2022) suggest that a brand is a strategic resource, which can contribute to an organisation’s competitive advantage and the value of a firm.

(5) A positive brand can aid the recruitment, motivation and retention of high-quality employees (Balmer and Gray, 2003; de Chernatony, 2012; Xie and Boggs, 2006).

(6) Among Central Eastern European countries corporate branding is closely connected to the nation brand, with the success of the corporate and national brand influencing each other (Aronczyk, 2008; Đorđević, 2008).

There is a substantial body of research on the development and management of corporate brands, with several models and frameworks being introduced (see Supplementary Material A for details). This work primarily considers the subject from a European/US/Commonwealth perspective (Balmer et al, 2016; Fetscherin and Usunier, 2012; McKenzie and Merrilees, 2008) with little attention being paid to the development and management of corporate brands in transitional economies. The existing models and frameworks also have certain limitations (Wang, 2007). They tend to be conceptual in nature (Knox and Bickerton, 2003), offer limited practical guidance for corporate brand-building activities (Järventie-Thesleff et al, 2011) (Balmer’s AC³ID Test aside) and have little application in transitional economies. This issue of cultural limitations has been identified in the broader marketing literature (Balmer, 2001; McKenzie and Merrilees, 2008; Steenkamp, 2001; Steenkamp, 2005). The need for future research focusing on corporate branding in diverse contexts (Fetscherin and Usunier, 2012) and beyond the traditional European and North American domains has also been raised (Balmer et al, 2016). The following section will consider how transitional economies differ from developed economies, and the complexities in applying existing corporate brand building and management concepts, frameworks and theories within these transitional economies.

Albania ended 46 years of communist rule and established a multiparty democracy in 1990. The Albanian communist identity was shaped by three main elements: isolation, economic scarcity and an imposed ideology (Lawson and Saltmarshe, 2000). Since 1990 the transition to a democratic political regime and capitalist economy has been challenging, characterised by high unemployment, corruption, organised crime networks, hostile political opponents and a dated infrastructure (CIA fact book, 2018). Despite this, there have been some significant developments in Albania. The country joined North Atlantic Treaty Organization (NATO) in April 2009 and in April 2017 Albania received a European Commission recommendation to open EU accession negotiations. Reforms have been introduced to reduce corruption, encourage growth and job creation. Because of these and other measures, Albania is transitioning, and it is categorised as an upper middle-income country (WORLD BANK, 2019).

Agna Group was founded in 1991, after the fall of communism in Albania, by a 20-year-old student. Initially it was a small business with only few employees and a warehouse (a former cow barn in the village of the founder). Chewing gum, second hand clothes, salt and sugar were the only products the company sold initially. In 1992, Pepsi Cola became part of the company’s portfolio. Pepsi was the company’s first distributed global brand, and was not previously available in Albania. Later on, other well-known international brands were added to the company’s portfolio. Fast forward to 2024 and Agna group has 1280 employees and the company serves around 16,000 business-to-business (B2B) customers. The organisation is the leading distributor in the Albanian FMCG sector, and is the sole Albanian distributor for multinational companies such as PepsiCo, Heineken and Nestlè. Whilst the organisation has made significant progress from its humble beginnings the Chief Executive Officer (CEO) and founder remains ambitious to develop the company and the Agna brand.

The detailed literature review corresponding to phase one of the research project highlighted six recurring constructs relating to the development and management of corporate brands. These recurring constructs are outlined in Fig. 1.

As previously indicated the research sought to consider the extent to which the elements identified are relevant to the development and management of a corporate brand within a transitional economy. The findings show that whilst these constructs are relevant to Agna there are variations due to certain cultural and market conditions. The most important factors are:

• The fundamental role of the CEO.

• The need for core corporate brand values (specifically integrity).

• The development and subsequent management of corporate culture.

• Unique stakeholders who need to be accommodated.

Each of these elements will be discussed in the subsequent section.

Numerous authors (Balmer and Wang, 2016; Balmer, 2022; de Chernatony, 2012; Ind, 1997; King, 1991; Kitchen et al, 2013; Knox and Bickerton, 2003) highlight the role an organisation’s CEO plays in developing and managing a corporate brand. Within Agna the CEO plays a pivotal role in brand development and management influencing the company’s identity, its core values and corporate culture. Our research found that within Agna the organisational strategy, decision-making activities, company rules and training programmes are heavily influenced by the CEO’s vision for the corporate brand. By way of example, the CEO initiated and led the process of establishing the ‘Agna Leadership Academy’ (ALA) and has personally contributed by producing training and development materials and teaching on academy courses. The CEO has also been involved in developing documents that clarify how Agna employees should operate. This includes a code of ethics, procedure guidelines and documentation regarding Agna’s core values and beliefs for success and the ‘Agna Way’ business model. Issues such as intolerance for corruption, are explicitly specified in these documents, as this is a stated problem in Albania. This differs from Western companies where such aspects are only implicitly addressed. This is a need for Agna in the post-communist country of Albania, in order to build the desired way of working.

The findings indicate that the CEO’s involvement and influence stems from three sources:

(1) The CEO’s pivotal role in the organisation as President, Chairman of the Board and a strong, visionary leader: “He is the business founder, the person that manifests and supports these values, and the main decision maker” (Res. 3).

(2) The CEO’s bond with the corporate brand and his vision for it. As the founder of Agna, the corporate vision is the CEO’s vision. “Everything comes from the head, from his [CEO] vision and desire, from the way he wants to develop the business” (Res. 19).

(3) CEOs are often important for a brand but in this case the culture of the post-communist system is key. The hierarchical nature of Albanian society where leaders are important and hierarchical management practices dominate (Bakacsi et al, 2002; Strang and Vajjhala, 2015; Zogjani et al, 2014) has a strong influence on the corporate brand. Given the previous communist regime in Albania employees within Agna are accepting of strong leadership: “He [CEO] is the one that says where we have to go and what we want” (Res. 13) and sees this approach as beneficial: “People act better and perform better by obeying to the rules” (Res. 12). This is in contrast to the dominant Western corporate style where the empowerment of employees is viewed positively. In line with the comments of Balmer (2013) the Agna CEO plays a central role in nurturing, guiding, tracking and adapting the corporate brand and the corporate brand orientation. However, in the case of Agna the CEO’s influence on corporate brand building and management is personal, direct and decisive and there is less skepticism towards the idea of the strong leader than may be the case in Western companies. In post-communist cultures like Albania, people accept a hierarchical order and expect to be told what to do (Hofstede insights, 2018). The fact that Albania scores high in the power distance index indicates that Albanian employees are expected to obey and comply with what the leader thinks, does, and says (Javidan et al, 2005). This differs from other countries where leadership authority and power are exercised and accepted at a different scale (Bakacsi et al, 2002). Thus, having a dominant CEO is accepted by the culture, but may not necessarily be entirely beneficial. It might pose potential risk in relation to decision making and organisational culture. Further research could offer perspectives from different countries on the role of CEO in corporate brand building and management and how it may develop over time.

The findings indicated that core values are central to brand development and management in Agna as they guide corporate strategy, help manage employees’ behaviour, and influence decision-making.

Some of Albania’s perceived characteristics (e.g., instability, corruption, levels of organised crime) mean international partners are cautious about doing business in Albania. As such they seek out trust-worthy local organisations, as one external partner stated: “Agna is a trustworthy partner to do business with. The relationship between the two companies has progressively developed over the years due to the high level of trust, shared ambitions and business principles” (Ext. Res. 6). As such there are strategic reasons for Agna having integrity as a core value and key element of the corporate brand. The Agna brand is implicitly trying to position itself, through its core values as having a mindset that would be easily recognisable to Western partners.

In order to ensure that employees act in a desired manner the core values are used to guide employees’ behaviour. As one Agna employee stated: “Core values are like a bell ringing in your ear: watch out, we have these values, do not make mistakes” (Res. 8). The use of values as a mechanism to explicitly manage employees’ behaviour may seem unusual but as indicated in the quote below it is in line with Albanian culture: “Control is needed, because people perform better when there is control on what they do and how they do things. On the other side, people like to be controlled; they get more motivated when someone checks on what they have done. It is part of the Albanian culture” (Res. 1).

Linked to the previous point, core values are used in Agna to aid decision making. For example, the decision to terminate a domestic partnership was based on the partner’s failure to adhere to Agna’s values.

The evidence suggests that a set of core values which guide corporate brand development and management are key as whilst there have been considerable advancements in the Albanian economy informality and corruption are still present (European Commission Report, 2020) and as respondent 12 noted: “In Albania you are told that you are not smart if you do not steal”. Through adopting an alternative approach, Agna have made their core values and genuine corporate brand values a competitive advantage with international and local partners attracted to Agna by these values. In practical terms, the core values are prominently displayed on the walls at the Agna headquarters. In addition, there are HR policies in place which support, promote and reward the implementation of Agna’s core values. For example:

• 50% of the employee performance evaluation criteria are related to the implementation of the core values in daily business practice.

• The core values form a key part of the recruitment process and feature in the interviews with potential employees.

• Employees are formally in breach of their contract if they do not act in accordance with Agna’s core values.

• Agna employees are required to sign up to a code of ethics with any breaches to the code potentially leading to the termination of an employee’s work contract.

The key role of core values and specifically integrity, was also identified as a topic in all the CEO speeches at the annual company gatherings from 2008–2020. Integrity is praised by the CEO and seen as ‘the value of the values’. As illustrated in his 2010 speech, “it is the value that guarantees all the other values”.

Our research indicates that when developing and managing a corporate brand in Albania there is a need to actively manage the corporate culture and this can be more complex than in Western companies. Within Albania close, family-like relationships are very important and this was evident within Agna. Respondents talked of socialising with colleagues and having working lunches. When discussing working for Agna one respondent stated: “I feel like in a family: the relationships with people, the communication, the way of doing things, of making decisions, the kindness, the simplicity” (Res. 3).

A ‘family spirit’ is appreciated among Agna employees, and also in the wider context of Albania where there is still a collectivistic culture. For this reason, the family spirit trait is nurtured in Agna through: the ‘Agna Way’ business model; CEO speeches; collectivist actions, such as the Agna corporate song which promotes a family spirit and sense of belonging; HR policies (i.e., annual corporate events, parties and celebrations; gifts when employees get married; Christmas presents and parties for employees’ children). However, this emphasis on relationships and informality was also associated with some negative traits as employees sometimes failed to follow procedures and engaged in nepotism. With such activities potentially undermining the Agna core values and the corporate brand a series of regulations and procedures were introduced as part of the ‘Agna Way’.

A number of respondents commented favourably on this: “In the past, people had to be part of a group in order to progress, to have pay increments, good evaluations. Now there are procedures and rules in place. By putting some rules in place, people started to disconnect from the old mentality ‘I am the friend of x, forgive him this time’” (Res. 9). Having rules within Agna is seen to help achieve results and is a move towards a more Western corporate culture. “It is important to put some rules in place; not to put limits, but order, because this affects the way of behaving with clients and as such, our results” (Res. 7). Thus, rules are set to address informality, as well as to clarify the new way of doing business in Agna. These rules consist of HR policies (i.e., code of ethics; procedures booklet; performance evaluation process and the Agna Leadership Academy modules). These rules are communicated through the ‘Agna Way’; ‘Core Values and Beliefs for Success’ training programme; CEO speeches and monthly working meetings.

While rules and regulations are in place and guide the way of operating on behalf of Agna, relationship building with customers, is key in ensuring successful business interactions. As respondent 12 who has worked in sales for fifteen years illustrated: “MNCs such as Heineken consider the standards, the systems and the price policy as priority in the work with the clients, but building relationships is what counts first in Albania” (Res. 12). With the building of relationships seen to help accomplish business tasks and get results Agna manages its relationships with key stakeholders. For example, key customers are invited to social and educational events and are sent presents on festive celebrations. The difference in culture can clearly be seen here. Many Western organisations have clear rules prohibiting the acceptance of gifts. Thus, relationship building is part of the company culture, in order to accomplish business requirements and achieve results within a collectivist culture. However, these relationship building activities are regulated to assure they are in accordance with the ‘Agna Way’. Building on the above, it appears there is significant complexity in managing corporate culture and the delivery of core values.

Within certain sectors in the West (e.g., groceries) there has been a shift in power with retailers (and their corporate brands) becoming increasingly dominant over manufacturers (Dawson and Shaw, 1990). In the UK, for example many major brands are subservient to the main supermarket brands. However, given the fragmented nature of the FMCG market in Albania, with a great many points of sales (18,000) in a small population of 2.4 million people, and 28,000 km², the large multi-national manufacturers continue to have significant influence and power. In the case of Agna these organisations have influenced the corporate brand development and management in many ways. For example, Agna established the Agna Leadership Academy to develop employees with the required skills and knowledge to deliver Agna’s core values and corporate brand and to be able to specifically engage with the large multi-national organisations. This has not been straight forward. As one respondent noted: “Having well qualified employees may be the norm in other developed countries, but it is difficult in Albania, and has been a challenge for Agna” (Res. 4). However, the subsequent professionalism has been received favourably: “We are blessed to have such a visionary partner. Agna aims high and achieves targets” (Heineken representative) and is seen as the source of a competitive advantage: “Being a leader is what makes unique our relationships with partners and clients that the other companies cannot do” (Res. 8). Thus, MNCs set expectations for certain ethical and professional standards, which in turn have influenced the way the Agna corporate brand is built and managed.

Another key stakeholder is the government. In Albania government institutions have significant influence as they oversee key policies and regulations. Being perceived favourably and having a good relationship with the government facilitates business interactions, thus, positively influencing the development of the corporate brand. As one respondent noted: “Being perceived as a company with integrity helps with governmental institutions, e.g., the customs, the tax office serve you fast, do not create obstacles” (Res. 2). Through introducing a set of strong core values (such as integrity) and engraining these through measures such as the ‘Agna Way’ the organisation has been viewed favourably by the government. They have been invited to engage with the Ministry of Finance and the tax office, and consulted before decisions are made on new laws affecting the FMCG business.

It is evident that corporate brand building and management in Agna, is significantly influenced by the local culture and market context. The way this influence is exhibited, exerted and managed, is outlined in the below framework, Fig. 2.

Fig. 2.

Framework of corporate brand building and management in a transitional economy (TE). MNCs, multi-national corporations.

(Supplementary Material B illustrates the operationalisation of the elements, through tables produced on the constructs of each element, as well as the internal and external drivers).

Our research contributes to the understanding of CBBM in a transitional economy, a previously under-researched context; with differing cultural perspectives from the contexts explored to date (i.e., North America and Western Europe). It further advances the work on CBBM by presenting a framework that outlines how corporate brands may be developed and managed, based on the research findings and relevant literature. It contributes to practice by identifying key factors that are relevant to the development and management of corporate brands within transitional economies, as well as exploring the constructs, drivers and processes involved in building and managing the corporate brand in such circumstances.

Overall, this research contributes to helping transitional economies (and CEE countries with similar characteristics and level of development) to benefit from building and managing their corporate brands.

Despite a number of important contributions to knowledge and practice, this research has limitations. The work looked at corporate brand building and management in a transitional economy (Albania). As such, it is a single country study, although other transitional economies will benefit from its findings. No similar studies have been conducted before in Albania or other transitional economies. Thus, it is not possible to compare the findings of this research with earlier/other studies, mainly with respect to the major influence of the local culture on corporate brand building and management.

Further research has the potential to increase our knowledge in this area. More specifically, conducting a longitudinal study in the Agna Group would provide valuable insights on how the corporate brand is built and managed along different stages of the process over time. Further research with other companies in FMCG and/or other industries would also help explore the wider application of the framework and the required adjustments and/or changes within the context of transitional/emerging economies. Finally, research in other transitional economies and emerging markets in the Balkan Region, Eastern Europe and beyond, has the potential to enrich the understanding on how a country’s culture influences corporate brand building and management, as well as the practices and processes required to address its influence as part of the corporate brand building and management. In addition, research among companies in cultures that score similarly on the Hofstede scale, will help compare and contrast the corporate brand building and management processes.