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Nation Branding: Case Study of Zimbabwe S. Sena 2012

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Nation Branding: Case Study of Zimbabwe S. Sena 2012 NATION BRANDING: CASE STUDY OF ZIMBABWE S. SENA 2012 NATION BRANDING: CASE STUDY OF ZIMBABWE STEVEN SENA Thesis submitted in fulfillment of the requirements for the degree of PHILOSOPHIAE DOCTOR: BUSINESS MANAGEMENT in the Faculty of Business and Economic Sciences at the Nelson Mandela Metropolitan University Promoter: Prof N. E. Mazibuko PORT ELIZABETH Co‐Promoter: Prof M. Tait DECEMBER 2012 DECLARATION I, Steven Sena, hereby declare that this thesis entitled: Nation branding: Case study of Zimbabwe is my own research work, which has not been previously submitted for a degree at any university. I also declare that all authors whose studies have been cited and reported here, have been acknowledged by means of complete references. Signature: Date: 07 December 2012 Language editing declaration I hereby, declare that I have performed the language editing of the thesis titled: Nation branding: Case study of Zimbabwe. Mrs V. M. Maqagi i ACKNOWLEDGEMENT I appreciate and thank the support I got from the following people and institutions, whose continued support and facilitation made the completion of this thesis possible: From the NMMU I would to thank my promoters Professor N. E. Mazibuko and Professor M. Tait who saw me through this study. Their exceptional guidance, encouragement, and continuous support are highly appreciated. Mrs Sisi Maqagi the language editor did a tremendous job of editing my thesis. Dr. Jacques Pietersen’s assistance and guidance in statistical analysis is highly appreciated. Special mention goes to Mrs Naz Abrahams and Mr Riyaadh Lillah for their assistance through out the course of the study.I appreciate the NMMU Research Fund and the Publication DHET Subside Incentive Funding for their financial assistance without which this study was not going to be possible. From Zimbabwe, I would like to thank the the government of Zimbabwe and my employer for affording me the chance to come to South Africa and pursue my studies. I would like to thank my wife and children for the moral support they gave me during my period of study. ii TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENT ii TABLE OF CONTENTS iii LIST OF TABLES xii LIST OF FIGURES xiv ABSTRACT xv CHAPTER ONE INTRODUCTION AND BACKGROUND OF THE STUDY 1.1 INTRODUCTION 1 1.2 PROBLEM STATEMENT 1 1.3 RESEARCH OBJECTIVE 2 1.3.1 Primary objective 3 1.3.2 Secondary objectives 3 1.4 RESEARCH QUESTIONS 3 1.5 SIGNIFICANCE OF THE STUDY 4 1.6 THE FOUNDATION OF THE NATION BRANDING MODEL 5 1.7 THE RESEARCH HYPOTHESES 7 1.8 SCOPE OF THE STUDY 7 1.9 LITERATURE REVIEW 7 1.9.1 Nation branding as a concept 7 1.9.2 The entertainment industry 8 iii 1.9.3 Cultural elements 14 1.9.4 Stakeholders 17 1.9.5 Nation hope 19 1.9.6 Nation building 19 1.9.7 Nation competitive advantage 20 1.10 RESEARCH METHODOLOGY 20 1.10.1 Quantitative and qualitative paradigm 21 1.10.2 The survey design 21 1.10.3 Population of study and sampling 22 1.10.4 Sampling and sampling methods 22 1.10.5 Probability and non-probability sampling 22 1.10.6 Random sampling 23 1.10.7 Purposive sampling 23 1.10.8 Questionnaire 23 1.10.9 Data presentation, analysis, and interpretation 23 1.11 PRIOR RESEARCH 24 1.12 CONTRIBUTION OF THE STUDY 24 1.13 STRUCTURE OF THE STUDY 25 CHAPTER TWO THE ZIMBABWEAN BUSINESS ENVIRONMENT 2.1 INTRODUCTION 27 2.2 A GENERAL OVERVIEW OF THE BUSINESS ENVIRONMENT 27 2.2.1 Political factors 28 2.2.2 Economic factors 29 iv 2.2.3 Socio-cultural 29 2.2.4 Technological environment 30 2.2.5 Legal environment 30 2.3 A BRIEF OVERVIEW OF INTERNATIONAL BUSINESS 30 2.3.1 International versus domestic business 31 2.3.2 The impact of globalisation on international trade 32 2.4 REGIONAL INTEGRATION 34 2.4.1 Zimbabwe’s benefits from regional integration 34 2.4.2 Bilateral Trade Agreements 34 2.5 INTERNATIONAL TRADE THEORIES AND THEIR INFLUENCES ON THE INTERNATIONAL BUSINESS ENVIRONMENT 36 2.5.1 The competitive environment 36 2.5.2 Absolute advantage theory 37 2.5.3 The comparative advantage theory 39 2.5.4 The factor endowment theory 40 2.5.5 The nation competitive advantage theory 41 2.5.6 Porter’s diamond of nation competitive advantage theory 41 2.6 ZIMBABWE BUSINESS ENVIRONMENT DURING THE 2000-2008 PERIOD (THE CRISIS PERIOD) 43 2.7 BUSINESS CLIMATE IN THE COUNTRY 47 2.7.1 Governance situation 47 2.7.2 The education system 47 v 2.7.3 The health delivery system 48 2.8 THE BUSINESS ENVIRONMENT IN ZIMBABWE DURING THE 2009-2012 PERIOD 49 2.9 THE CURRENT INVESTMENT CLIMATE IN THE COUNTRY 51 2.9.1 Sector investment opportunities 52 2.9.2 Investment incentives 55 2.10 SUMMARY 55 CHAPTER THREE THE NATURE OF NATION BRANDING 3.1 INTRODUCTION 57 3.2 CONCEPTUALISATION OF BRANDING 57 3.3 MODELS OF BRAND EQUITY 58 3.3.1 Aaker’s brand equity model 58 3.3.2 Keller’s customer based brand equity model (CBBE) 62 3.4 BUILDING STRONG BRANDS 69 3.4.1 Nation brand equity (NBEQ) 69 3.5 NATION BRANDING AS A CONCEPT 71 3.5.1 Corporate branding versus nation branding 73 3.6 THE NATION BRANDING MODELS 74 3.6.1 The Anholt-GfK Roper nation brand index (NBI) hexagon 74 vi 3.6.2 The Hanna and Rowley’s nation, country, place, or location branding model 78 3.7 MEASURING OF NATION, COUNTRY, PLACE, OR LOCATION BRAND EQUITY 80 3.8 NATION BRANDING VERSUS NATION BUILDING 82 3.9 SUMMARY 83 CHAPTER FOUR NATION BRANDING OF SELECTED COUNTRIES 4.1 INTRODUCTION 84 4.2 NATION BRANDING OF FORMER YUGOSLAV STATES: SLOVENIA 84 4.2.1 The core of Slovenia’s brand 87 4.2.2 Nation branding challenges faced by Slovenia 90 4.3 BRAND KENYA INITIATIVE 92 4.3.1 Observations from the Kenya nation branding initiative 94 4.4 BRAND SINGAPORE: THE HUB OF NEW ASIA 94 4.4.1 Challenges faced by nation branding of Singapore initiative 98 4.5 CHALLENGES OF NATION BRANDING FOR ZIMBABWE 99 4.5.1 Addressing the challenges of nation branding 102 4.6 SUMMARY 105 vii CHAPTER FIVE THE THEORETICAL MODEL FOR PERCEPTIONS OF NATION BRANDING FOR ZIMBABWE 5.1 INTRODUCTION 106 5.2 THE MODELLED INFLUENCES OF NATION BRANDING PERCEPTIONS 106 5.2.1 The entertainment industry 107 5.2.2 Cultural elements 122 5.2.3 Stakeholders 127 5.2.4 Nation branding elements 134 5.3 THE MODELLED OUTCOMES OF NATION BRANDING 136 5.3.1 Nation hope 136 5.3.2 Nation building 138 5.3.3 Nation’s competitive advantage 139 5.4 SUMMARY 141 CHAPTER SIX RESEARCH METHODOLOGY 6.1 INTRODUCTION 142 6.2 PURPOSE OF THE STUDY 142 6.3 OBJECTIVES OF THE STUDY 143 viii 6.3.1 Primary Objective 143 6.3.2 Secondary Objectives 143 6.3.3 Research questions 144 6.4 RESEARCH DESIGN 144 6.4.1 The survey design 144 6.5 SAMPLING 145 6.5.1 Sampling procedures and sample size 146 6.6 QUESTIONNAIRE 153 6.6.1 Questionnaire design 153 6.6.2 The questionnaire development process 155 6.6.3 Questionnaire structure 155 6.6.4 Advantages of a questionnaire as a data collection tool 156 6.7 AN OVERVIEW OF THE MEASUREMENT PROCESS 158 6.7.1 Levels of measurement 158 6.7.2 The measurement process 159 6.7.3 Principal Factor Analysis and Principal Component Analysis 167 6.8 MEASURING INSTRUMENTS 171 • The entertainment industry 171 • Cultural tourism 171 • Stakeholders 172 • Brand attributes 172 • Nation hope 172 • Nation building 172 • Nation competitiveness 172 ix 6.9 INSTRUMENTS USED FOR THE DEMOGRAPHIC PROFILE 172 • Employment title 173 • Gender 173 • Age group 173 • Educational level 174 • Period at current employment 174 • Type of industry 174 • Size of organisation in terms of employees 175 6.10 THE LIKERT SCALE 175 6.11 DATA COLLECTION PROCEDURES 176 6.12 DATA PRESENTATION, ANALYSIS, AND INTERPRETATION 176 6.12.1 Data presentation 176 6.12.2 Interpretation 177 6.13 SUMMARY 177 CHAPTER SEVEN EMPIRICAL EVALUATION OF THE STUDY 7.1 INTRODUCTION 178 7.2 SUMMARY OF THE EMPIRICAL INVESTIGATION OBJECTIVES 178 7.3 THE HYPOTHESIS CONCERNING NATION BRANDING FOR ZIMBABWE 178 7.4 DATA ANALYSIS RESULTS 179 7.4.1 Internal reliability of instruments 180 7.4.2 Descriptive statistics 181 x 7.4.3 Validity of measurement instrument 183 7.4.4 Perceptions of respondents towards tourists attractions, entertainment events, stakeholders, hospitality and cultural elements 184 7.4.5 Regression analysis 195 7.4.6 Correlation analysis of the hypotheses 202 7.5 SUMMARY 208 CHAPTER EIGHT MANAGERIAL IMPLICATIONS, SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS 8.1 SUMMARY OF THE STUDY 209 8.2 CONCLUSIONS ON RESEARCH PROBLEM OF THE STUDY 210 8.3 THE EMPIRICAL FINDINGS OF THE STUDY 212 8.4 RECOMMENDATIONS FOR NATION BRANDING FOR ZIMBABWE 217 8.5 CONTRIBUTION OF THE STUDY 225 8.6 LIMITATIONS OF THE STUDY AND FUTURE RESEARCH 225 REFERENCES 226 APPENDIX A: ETHICS CLEARANCE FORM 237 APPENDIX B: COVERING LETTERS 239 APPENDIX C: QUESTIONNAIRE 242 xi LIST OF TABLES 2.1 Inflation rates for Zimbabwe (2000-2008) 45 2.2 Sector incentives 53 3.1 Distinction between corporate and nation branding 74 6.1 Composition of respondents in demographic terms 150 7.1 Abbreviations of variables 180 7.2 Cronbach alpha values for measuring instruments 181 7.3 Descriptive statistics for each variable: General response category 183 7.4 Factor loading: Perceptions of management of influences of nation branding 188 7.5 Empirical factor structure: influences 189 7.6 Factor loadings: Perception of management for nation branding 190 7.7 Factor loadings: Outcomes of nation branding 191 7.8 Empirical factor structure: Nation branding and outcomes 192 7.9 Empirical factor structure: Influences and outcomes of nation branding 193 7.10 Regression analysis: The influences of independent variables on nation branding 197 7.11 Regression analysis for the influences of nation branding towards nation building 198 7.12 Regression
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