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Seven dimensions of
40,7/8
corporate identity
A categorisation from the practitioners
846
perspectives
T.C. Melewar
Received August 2003
Revised September 2004
Brunel Business School, Brunel University, London, UK, and
and April 2005
Elif Karaosmanoglu
Accepted May 2005
Istanbul Technical University, Istanbul, Turkey
Abstract
Purpose  This paper investigates what organisations perceive as the essential components of
corporate identity concept and their contents. It proposes an operational definition of corporate
identity on the basis of the practitioners views.
Design/methodology/approach  The information was gathered through 32 in-depth interviews
with managers from different organisations (mainly multinational companies) and an analysis of
corporate literature and web sites. The initial analysis is based on a multidisciplinary categorisation
developed by the first author, which facilitated the systematic analysis of a wide range of components
(e.g. corporate communication, corporate design, corporate culture etc.) associated with corporate
identity.
Findings  The study shows that there is a considerable divergence in opinions concerning the
fundamental components of corporate identity among practitioners. Most interviewees heavily
associated identity with the areas of corporate design, communication, behaviour and strategy
whereas there was no unanimous agreement as to whether or not corporate culture was a product or
determinant of corporate identity.
Research limitations/implications  Developing sub-items and their measures for each
dimension presented in the proposed definition and examining the possible relationships between
them might be the further step. Also additional empirical research which considers consequences of
corporate identity management in relation to company performance indicators could enhance overall
understanding of the concept.
Practical implications  Senior company management can use the categorisation discussed in this
paper as a starting point for development of corporate identity management strategies.
Originality/value  Recategorisation of Melewar s corporate identity dimensions, which help define
corporate identity concept in measurable terms.
Keywords Corporate identity, Corporate strategy, Organizational identity, Corporate image
Paper type Research paper
Introduction
For a variety of reasons, both academic and business interests in corporate identity
have increased significantly in recent years. Organisations have realised that a strong
European Journal of Marketing
identity can help them align with the marketplace, attract investment, motivate
Vol. 40 No. 7/8, 2006
employees and serve as a means to differentiate their products and services. Thus,
pp. 846-869
q Emerald Group Publishing Limited
many organisations are striving to develop a distinct and recognisable identity. Certain
0309-0566
DOI 10.1108/03090560610670025 characteristics of an efficacious corporate identity include a reputation for high quality
goods and services, a robust financial performance, a harmonious workplace
Dimensions of
environment, and a reputation for social and environmental responsibility (Einwiller
corporate
and Will, 2002).
identity
Identity is now widely recognised as an effective strategic instrument and a means
to achieve competitive advantage (Schmidt, 1995) and being researched by more
academics and practitioners. However, the lack of a clear definition (Balmer and
Greyser, 2003) makes the research in corporate identity management area a formidable
847
task (Melewar and Jenkins, 2002), especially, in relation to determining the parameters
of the research concept in guiding scholarly investigations (Balmer and Greyser, 2003;
Cornelissen and Elving, 2003). This lack of clarity in the academic world is also
reflected in the business world. Many executives confessed to having little knowledge
of how to manage, control or even explicitly define the concept (Melewar et al., 2003).
In academic research, since corporate identity has been associated with different
levels of organisational phenomena and practices i.e. the road from visual expressions
to all expressions of the organisation (Cornelissen and Elving, 2003), developing better
measures to examine it as well as its components remain of considerable importance.
Therefore there is a need for an in-depth analysis to decipher the essence of the
corporate identity construct and its derivatives (Cornelissen and Elving, 2003).
However, the main aim of this paper is rather to develop a better understanding of
corporate identity through examining the experiences and perceptions of managers.
We review evaluations of the definitions of the corporate identity concept and elucidate
the components of corporate identity based on the literature, and investigate
empirically how corporate identity management is practiced in comparison to its
theoretically defined components. By examining the managers views, we demonstrate
how each component s content has been explained and perceived in practice. The
central issue this paper assumes is that this approach will enable us to operationalise
the concept and its components by examining it in an  ecologically valid environment
(Smith et al., 1998, p. 64) rather than at a theoretical level, since any theoretical or
conceptual argument needs to be tested in actual application (Allen and Janiszewski,
1989).
Furthermore, from the perspectives of managers interviewed, it examines the
importance of each component in the overall corporate identity management. The
study uses both in-depth interviews and secondary sources of information from
academic and corporate literature and tries to classify the essential components of
corporate identity. As a result of this attempt, it provides an operational definition of
corporate identity, which may aid further empirical research.
Corporate identity: the concept
A review of the literature over the past 20 years reveals that both academics and
practitioners are placing increased importance on the issue of corporate identity. The
various definitions of corporate identity were reviewed for the purpose of this study,
largely based on research by a number of commentators (Balmer and Soenen, 1999;
Ind, 1992; Melewar and Jenkins, 2002; Olins, 1990a, b).
Corporate identity could be interpreted as a strategic manifestation of
corporate-level vision and mission, underpinned by the strategies which a
corporation employs in its operations or production (Melewar and Wooldridge,
2001). A strong emphasis is placed on ethical and cultural values, as well as
organisational history and philosophy (Ind, 1992). The literature reviewed almost
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unanimously makes a profound link between corporate image and corporate identity,
40,7/8
stating that image is the collective perception that the stakeholders have of corporate
identity.
Balmer s research (1998) is useful in outlining some of the generally accepted
features of corporate identity definitions. First, corporate identity is a multidisciplinary
848 field. Second, it is a term used to identify the essence of what the firm is and thus
incorporates many unique characteristics of the firm such as history, philosophy,
culture, communication and the industry the firm operates in. Third, it is inseparable
from the corporate personality of the organisation.
Furthermore, Balmer and Soenen (1999) also provide some useful judgments. They
highlight that although there is no consensus on what elements make up the corporate
identity mix, it is widely agreed that a multidisciplinary approach to the study of
corporate identity is necessary (See also Bick et al., 2003). This opinion is supported by
Melewar and Jenkins (2002) who state that the term  corporate identity evolved from
undertakings in the area of marketing, primarily in areas such as corporate visual
identity systems, which are used to represent the organisational values and mission to
the outside world. However, the evolution of the corporate identity concept meant that
the term became associated with a wide range of functions including business strategy,
philosophy of key executives, corporate culture, behaviour and corporate design which
are both interdependent and unique to each organisation (Van Riel, 1997).
Melewar and Jenkins (2002) state that, whilst there is no distinctive difference
between the views of practitioners and academics, there are differences in the
approaches the two groups viewed the fundamental components of the mix. The
approach taken by practitioners is generally more process-orientated (Balmer, 1998)
and is thus generally concerned with more tangible elements of identity with a strong
emphasis on those areas that have a higher propensity for manipulation. Balmer and
Soenen (1999) highlight that this can result in practitioners concentrating on visual
aspects of identity and overlooking other areas. Academics generally take an approach
that is more orientated towards structure, and tend to address a greater number of the
mix components.
Research methodology
A review of the corporate identity literature was conducted along with a review of
related topics such as corporate strategy, strategic planning, marketing strategies and
organisational behaviour. The literature review revealed that although there are
several studies on corporate identity, there is still a need for a more elaborate
operational definition of the concept. Through analysing the views of both
practitioners and academics a functional definition of the term was developed by the
authors.
The initial analysis is based on the categorisation developed by Melewar (1993) as
this provides a multidisciplinary approach and facilitates the systematic analysis of a
wide range of components associated with corporate identity. The seven main
dimensions put forward in Melewar s categorisation are; corporate communication,
corporate design, corporate culture, behaviour, corporate structure, industry identity
and corporate strategy. Figure 1 depicts the initial categorisation.
Dimensions of
corporate
identity
849
Figure 1.
The original corporate
identity categorisation
The research aimed to ascertain what respondents believed were the core components
of corporate identity and the relationship between these components. The method of
research was a case study approach, which comprised 32 in-depth interviews mainly
with directors and senior managers but also with some lower level employees in 20
companies. The study was oriented towards providing an operational definition, and
so the interviews aimed to examine a wide range of experiences and perspectives.
The companies included in the study came from a broad spectrum of industries
including two multinational banks, two multinational accountancy firms, two
multinational oil companies, two multinational engineering companies, two
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multinational IT companies, four multinational conglomerates, two internet
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insurance companies, two toy companies and two marketing consultancies. Of the
32 individuals interviewed, ten held positions in the field of marketing, four held
human resources positions, 14 were senior general managers or directors and four were
on graduate training schemes. In certain organisations we interviewed more than one
850 individual.
A broad spectrum of academic research on the topic of corporate identity was also
conducted for the purpose of this investigation. Secondary sources of information were
also used such as company literature, information from their respective websites and
relevant press releases about each company.
A broad cross-section of companies was chosen because part of the investigation
aimed to analyse why particular firms might perceive certain components as more
important than others. For example, whether the choice of components and identity
were related to the size of the firm, the industry in which it operates or any other
firm-specific influence. The sample thus reflects a diverse set of organisations,
functional areas, and positions. The interviews did not follow any particular structure.
Unfolding the corporate identity concept
Corporate communication
A number of academics have stressed the links between corporate communication and
corporate identity (Cornelissen and Harris, 2001; Van Riel, 1995; Varey and Lewis,
2000). Corporate communication is a term that encompasses all the ways in which the
organisation communicates with its various stakeholders. Thus, all of the messages
emanating from an organisation, everything that it produces and all of the activities it
is involved in will act to shape stakeholders perceptions. Corporate communication
can be both controlled and uncontrolled in nature. Communication intentionally
instigated by management with the aim of improving stakeholder relationships is
classified as controlled corporate communication. Conversely, uncontrolled
communication takes place when organisations influence stakeholders perceptions
unintentionally.
Controlled corporate communication. A distinction can be made between three main
types of corporate communication, categorised as management, marketing and
organisational communication. Grunig (1993) argues that the particular  mix of these
subdivisions of communication is integral to the concept of corporate communication.
Marketing communication is generally associated with the 4Ps of product, price,
place and promotion and is aimed at supporting the sales of an organisation s products
or services. These include, advertising, public relation activities and direct marketing.
Organisational communication is conceptualised by Van Riel (1995) as all forms of
communication with stakeholders with whom an organisation has an interdependent
relationship. Investor relations and labour relations are part of organisational
communication. Marketing and organisational communication both act as the
principal link between image and strategic management (Hatch and Schultz, 1997).
Management communication applies to attempts to  communicate the vision and
mission of the company in order to establish a favourable image and ultimately a good
reputation amongst its internal and external stakeholders (Olins, 1989). Examples
include, house journal and magazines for employees and annual and environmental
Dimensions of
reports for external audiences.
corporate
identity
Importance of controlled corporate communication
There was a strong consensus amongst the interviewees that controlled corporate
851
communication was an important component of the overall corporate identity concept.
An interviewee from the engineering company reflected this sentiment when asked
about the importance of corporate communication to overall identity:
It really must be. We must now be more accountable with respect to our activities and this
means that efficient mechanisms must be implemented to communicate with the wide variety
of groups who have an interest in our company.
An interviewee from one oil company stated that the inter-relationships of corporate
communication and identity meant that the two concepts were inseparable:
Corporate communication is not just what the company says but how it is viewed in the
outside world, so it is to a large extent what your identity is based upon. Everything . . .
(company name) does, communicates something, from our environmental stance to our
shareholder statements and our identity is based on how all these forms of
communication are received by our staff, customers and investors.
Management communication is perceived by many academics and practitioners as
being the most important of these three forms of communication, as it involves the
expression of organisational goals directly to internal stakeholders (Kennedy, 1997;
Kiriakidou and Millward, 2000). Most of the interviewees concurred with this view, for
example, an interviewee from a trading (conglomerate) company stated:
The most important thing in a company is that everyone is aiming for the same thing,
therefore, the corporate management has to put forward its goals, its mission and try to sell
these to its employees. Once managers do this then the other corporate problems become far
easier to solve.
It is also apparent that communication directed at the external stakeholder
management communication plays a fundamental role in developing the desired
corporate image and in creating a strong competitive advantage (Kiriakidou and
Millward, 2000). In general, most of the companies believed that marketing and
organisational communication were also highly significant forms of corporate
communication. However, many of the interviewees explicitly stated that they felt
the sub-divisions of marketing, organisational and management communication
were a little artificial and impractical as the inter-linkages often made it impossible
to distinguish between these different types of communication.
Uncontrolled corporate communication. Cornelissen (2000) argues that the linear
models of corporate identity (For models see Stuart, 1999b) overlook the fact that
corporate identity perceived by publics, i.e. corporate image, is a total product of
controlled and non-controlled messages. Balmer (1995, p. 35) states that  . . . everything
the organisation does will in some way communicate the organisation s identity ,
which implies that unplanned communication has a considerable role in corporate
identity management (Stuart, 1999b).
Importance of uncontrolled corporate communication
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The majority of interviewees also perceived the matter of uncontrolled communication
40,7/8
as being highly important to corporate identity. The dearth of academic literature on
the subject is thus all the more surprising and there is a clear need for more research in
this area. An interviewee from an accountancy firm expressed the concern that his
organisation had about uncontrolled corporate communication:
852
. . . all of the players in our industry are now under such close scrutiny from the media that we
must operate at the highest standards, because bad publicity really has a more detrimental
impact on our business than ever before.
Another method of influencing uncontrolled corporate communication that was
perceived to be highly effective by more than one interviewee was to ensure that
employees were highly motivated and to develop an internal culture of integrity and
honesty. This makes sense as uncontrolled communication often takes place when
employees interact with external stakeholders (Moingeon and Ramanantsoa, 1997).
One interviewee from a marketing consultancy stressed this link between a virtuous
company culture and positive uncontrolled communication about the company:
. . . values of probity and integrity will always be of the utmost importance and are the key to
success in most companies and if you are running a company with these values you will
develop a positive image which is reflected to the outside world.
A dynamic inter-relationship between culture and communication must be
acknowledged. Corporate cultures will generally be communicated to stakeholders in
some form, particularly through employee behaviour and therefore one method of
reducing the occurrence of negative uncontrolled communication is by gaining
employee commitment of core corporate values.
Every respondent believed that corporate communication was a fundamental
influence on the corporate identity at his or her company. However, many interviewees
did state that communication could only be effective if it was supported by
performance achievements and that corporate rhetoric must be congruent with the
reality of its operations and behaviour.
Corporate design (visual identity)
Corporate design is a term used to describe the vast number of visual cues that are
associated with a specific organisation. Corporate visual identity system (CVIS) is
composed of five main elements: the organisation s name, slogan, logotype/symbol,
color and typography (Dowling, 1994; Melewar and Saunders, 1998; Topalian, 1984).
Visual identity can be conveyed in other ways, for example, through the companies
products and vehicles and the location as well as the architecture of its buildings. The
interior office design, for example, may symbolise many aspects of the corporate
culture. Dowling (1994) also highlights other applications of CVIS including
advertising, clothing, packaging and promotion and give-aways. Furthermore, Olins
(1990a, b) highlights the importance of the organisational environment in expressing
the corporate identity.
Baker and Balmer (1997) state that visual identity has two fundamental purposes,
firstly, it represents the organisation s values and philosophy, and secondly, it
supports corporate communication. The organisation s visual identity can influence
many of the stakeholders including employees and investors as well as consumers. It is
the most frequently discussed aspect of corporate identity and in consequence, one of
Dimensions of
the most commonly used methods to indicate a transition in identity by organisations
corporate
is a name change, often along with alterations to the corporate image.
identity
Importance of corporate design
Both the literature and the interviews supported the assertion that many organisations
use design as a means of expressing the strengths and qualities of the firm (Melewar
853
and Saunders, 1999). One interviewee from an insurance company reflected the general
consensus that design was a crucial element of corporate identity:
It [corporate design] gives our employees a sense what is expected of them and gives our
customers, who are largely other businesses, a sense of what the company is about,
professionalism and a high level of service.
Although there was considerable agreement that corporate design was an important
part of the overall corporate identity concept some sub-components of design were
considered more important. Numerous interviewees believed that the slogan was an
important aspect of design stating that slogans can have a powerful effect on
stakeholders perceptions of the organisation and can be useful in reminding
employees of the corporate mission. The interviewee from an IT company emphasised
that:
When you set up a new company you must make it clear what the new policies and catch
phrases are going to be and these can have a strong impact on the overall company identity.
Again, the relationship between design and culture is apparent, as corporate slogan
and mission are often cited as key components of culture as well as design. There was
also a strong consensus, particularly amongst the interviewees from large
multinationals, that architecture and location are an important aspect of corporate
visual identity. An interviewee from an oil company suggested that a particular change
in location and office layout had had a profound effect on the internal culture of the
firm:
When . . . [company name] brought everyone into the new centre at Waterloo (London) there
was an impact on the culture and this came with a new office layout, probably symbolising a
change to some extent in the way things were to be done.
To summarise, the majority of interviewees believed that design was an important
aspect of corporate identity. However, they felt that some of the sub-elements of design
were more important. The slogan, architecture and office layout, were of particular
importance whilst there was some scepticism surrounding the benefits of changing the
company name. Another important element that might be considered is the design of
the company s web site. Web sites are becoming an ever more popular medium that
stakeholders use to gather information about the company and thus are important in
shaping perceptions of corporate identity.
Corporate culture
There is a plethora of different views as to what constitutes corporate culture. Some
argue that it is strongly associated with rituals, for example, one interviewee explicitly
stated that culture:  . . . is the way we do things around here . In contrast, others such
as Peter and Waterman (1982) argue that employees are central to culture and what is
important is the  shared values of participants, although the evidence for this
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perspective has been strongly questioned.
40,7/8
There is a range of views concerning the relationship between corporate culture and
corporate identity. Culture epitomises the consensus within a company about how
activities should be accomplished and is conceived as a result of a group s shared
experience and learning with respect to matters of external adaptation and internal
integration (Schein, 1985). In contrast, identity pertains to who we are as an
854
organisation. Moingeon (1999) states that the use of the identity concept is a result of
field researchers perceptions of the  inadequacy of the culture concept to go past the
descriptive level in organisational analysis . Downey (1986) believes that corporate
culture is the consequence of corporate identity and argues that culture is the  what of
a company and identity is the  why .
Importance of corporate culture and its sub-components
There was unanimous agreement amongst the interviewees that the corporate culture
at their organisation was fundamental to its commercial success. Most of the
interviewees were able to define the characteristics of their specific corporate culture,
for example, the interviewee from a trading (conglomerate) company stated that the
culture represented:
Probity, teamwork and integrity.
There was considerable debate amongst the interviewees over the relationship
between corporate culture and corporate identity. A significant number of interviewees
perceived the two concepts as being fairly separate and distinct entities. For example,
an interviewee from the engineering company stated that:
I think corporate culture is something that builds up over years and years, it has nothing to
do with the corporate identity of the company which is projected to the public.
This view seems to perceive corporate identity as being an image developed by the
organisation for marketing purposes to outside stakeholders and not intrinsically
linked to internal aspects of the firm, and thus perceives corporate culture as being an
entirely separate entity from corporate identity. A respondent from a toy company
stated that his company would try to project a different corporate identity depending
on the groups they intended to appeal to and was thus more malleable in contrast to
culture, which existed purely in the minds of employees:
Corporate culture is what really goes on in our companies. It is the true reality of how
employees feel about working for us. Corporate identity is more to do with how we want to be
seen by various groups.
However, many interviewees suggested that corporate culture and corporate identity
were inseparably connected. For example, one respondent from an oil company
claimed:
. . . corporate culture and corporate identity are certainly connected and it is actually very
difficult to dissect the two. Corporate culture drives the development of the identity of the
organisation but also is generated by it.
Out of all of the components of corporate identity, the issue of corporate culture threw
up the widest range of opinions. Some of the interviewees regarded culture as being
exactly the same thing as identity, others felt that culture was simply a component of
Dimensions of
identity and some even expressed the opinion that culture transcended and was a far
corporate
broader concept than identity itself. All of the interviewees felt that a strong culture
identity
was fundamental to the success of their organisations and the relationship between
corporate culture and identity is clearly one that would benefit from further academic
and business research.
In order to allow a systematic and objective evaluation of the concept of corporate
855
culture, its various sub-components will be analysed. Although there is no universally
accepted definition of corporate culture, the literature review suggested that the
following are important elements of culture; philosophy, mission, values, principles,
guidelines, history, national culture, the founder of the company and subculture
(Ambler and Barrow, 1996; Czarniawska and Wolff, 1998; Schmidt, 1995).
Importance of mission
Corporate philosophy is associated with the fundamental values and assumptions of a
company created by senior management. Corporate values according to Van Riel and
Balmer (1997), are concerned with the beliefs within the organisation and include
language, rituals and ideologies that guide the company s culture and form the
corporate identity. All of the companies (except for the smallest, a toy manufacturer)
had a clear set of explicit statements pertaining to corporate philosophies and goals.
Most of the interviewees stated that these were in place to clarify organisational ethics
and objectives to a wide variety of stakeholder groups.
The corporate mission pertains to the reason for the existence of the company and is
thus seen by many as the most important element of corporate philosophy (Abratt,
1989). The interviewee from a trading (conglomerate) company maintained the need for
a mission statement:
. . . at the end of the day if you don t have a mission, if you don t have goals, then you re
finished.
Corporate principles are an important influence on essential corporate actions such as
targets, values and the mission of an organisation. Corporate guidelines are vital in
explaining the significance of corporate principles to all levels of the hierarchy within
the organisation. Many interviewees stated that corporate philosophy, values,
principles and guidelines are embedded in the mission statement of the company.
Importance of corporate history
There is a clear link between corporate culture and corporate history because culture
develops through the interaction between individuals over time. Moingeon and
Ramanantsoa (1997) state that while history is instrumental in defining the corporate
identity, identity in itself is instrumental in guiding history by its contribution to the
development of cultural norms manifested in perceptions and actions of members, thus
a dynamic linkage is evident between these two elements. Most of the interviewees
were of the opinion that corporate history was a significant constituent of the corporate
identity concept. One interviewee from an IT company stated that corporate history
could have a lasting impact on reputation:
. . . if you ve got a reputation that s historic; it s often very difficult to change that
reputation . . .
This is evidence of the fact that stakeholders perceptions of organisations are formed
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over long periods of time, so the history of organisational activities such as behaviour,
40,7/8
communication and strategy is the key to the foundations of identity. Thus, the
majority of respondents believed history to be an important element to both culture
and identity. Moreover, history is also strongly related to the next sub-component, the
founder of the company.
856
Importance of the founder of the company
In general, every interviewee believed that the founder of the company had at some
stage been an important influence on corporate culture. Some were more adamant than
others about the perpetuation of that influence as time went on but the fact that every
single interviewee knew a bit about the founder of their organisation suggests that the
founder usually plays some role in the development of corporate culture. One
interviewee from an engineering company, when asked if he felt that the founder of the
company had a significant impact on corporate identity reflected this view:
. . . the founders had a big influence on the company because they brought different national
cultures to the organisation, as I ve said this Anglo-Dutch influence is very important to this
day. Also their business strategies are still important particularly regarding growth and risk.
The following example in particular shows the obvious links between the founder and
other components of corporate identity such as the company name (as the company
founder s name). The respondent from an accountancy firm stated that:
He certainly did in . . . [company name], a chap called . . . [founder s name] set the company up.
The work ethic that he developed which was a very harsh one for the city in those days has
been maintained despite the years that have passed.
Importance of country-of-origin
Many academics maintain that a strong link exists between the national culture from
which the company originated and its corporate identity (Foo and Lowe, 1999;
Rowlinson and Procter, 1999; Varey and Lewis, 2000). For example, common
associations are made such as  German efficiency and  Japanese innovation . In
general, the interviewees believed that there was a country-of-origin (COO) effect
present within their organisation. However, this had been diluted in many
organisations, which had been operating overseas for a long period of time with a
decentralised structure. The COO effect also appeared weaker in organisations that
had grown through international mergers. One interviewee from an engineering firm
was probably most adamant about the importance of national culture on overall
corporate identity:
. . . when you talk about . . . [company name] you talk about a German company, which has
grown over many years within Germany and many of the businesses and communities we
developed strong links with were also German and this made our national identity a strong
part of our overall identity.
Most respondents believed that the COO was a significant influence on corporate
culture. However, many were of the opinion that the influence of national culture was
declining as a result of globalisation. This sentiment was strongly expressed by
respondents from an oil company. Thus, these companies might now be described as a
true multinational company that has transcended the COO effect as its operations take
Dimensions of
place in so many different countries and it has adapted its activities to local conditions
corporate
in these countries. An interesting area of research might therefore be to analyse
identity
whether or not the increasing spate of mergers and acquisitions in many
multinationals has meant that national characteristics are no longer as important to
corporate identity as they have previously been.
857
Importance of sub-cultures
The unitary perspective assumes that culture is monolithic and reflections of the
founder s beliefs and in consequence organisational members share a sense of loyalty
and commitment to the organisation (Schein, 1985). However, this view is a little
misleading since there is no substantive reason why employees across the organisation
would share consistent and stable values. Hence, many commentators have embraced a
differentiation perspective, viewing the organisation as an amalgamation of
sub-cultures (Balmer and Wilson, 1998; Deal and Kennedy, 1982; Meyerson, 1991).
They go on to explain that because corporate culture is highly inter-meshed with
historical and behavioural characteristics of the firm and its employees, and the fact
that each employee will interpret history and management communication differently,
the evolution of a unitary corporate culture is virtually impossible.
There was a wide range of opinions amongst the interviewees. Some respondents
claimed that many sub-cultures could be identified in their organisation and that this
could be problematic. Others stated that they had little influence and some even stated
that they did not exist in any significant capacity.
One interviewee from a trading company argued that sub-cultures could have a
detrimental impact on corporate identity:
. . . a classic example of this, 10 years ago I sold a company that had just started off as 3 of us
and ended with 90 people who were put in their own 5 sub-divisions to allow them to do their
own thing, be more creative. And what happened was that they all got jealous of each other
and I ve seen this many times in other companies that I ve worked with when in fact the
internal brands can often become more destructive towards each other than the actual
competitor brands.
Another interviewee from a marketing consultancy spoke of the negative impact that a
clash of national cultures had had within his organisation:
. . . particularly as a result of merging with an American company. Many of our UK
employees ended up forming cliques and I suppose they did the same, it all really becomes a
bit dysfunctional when you re trying to work towards one goal as a team, but that s what
happened and there was a bit of animosity.
In summary, respondents felt that corporate culture was of fundamental importance to
virtually every aspect of their firm s operations. Factors which respondents felt
strongly influenced corporate culture include; mission statements, history, country of
origin, subculture and to a lesser extent the founder of the company. There was a wide
range of opinions concerning the relationship between culture and identity ranging
from the two terms being essentially the same thing to a view that the two were fairly
distinct and separate entities.
Behaviour
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Behaviour is another fairly intangible aspect of corporate identity. However, an
40,7/8
analysis is made easier by breaking it down into a number of elements that make up
behaviour including, corporate, employee and management behaviour. Many
commentators suggest that the actions of a corporation are a fundamental element
of its identity (Albert and Whetten, 1985; Hatch and Schultz, 1997; Kiriakidou and
Millward, 2000; Topalian, 1984).
858
Importance of behaviour
Corporate behaviour stems from corporate actions in their entirety, both those that are
planned and congruent with corporate culture and those that occur spontaneously. The
majority of the interviewees believe that corporate behaviour can have a very
long-term effect on the overall corporate identity of organisations and it was fairly
unanimously agreed that corporate behaviour could have a huge impact on corporate
identity. This is unsurprising as what the organisation  does is clearly linked to
perceptions of what it  is .
Interviewees were also questioned about the importance of management behaviour.
Many academics suggest that management behaviour, i.e. the communication and
actions emanating from top management, can have a significant impact on corporate
identity (Fritz et al., 1999; Hatch and Schultz, 1997) and the interviewees substantiated
this view. Most interviewees believed that lower level employees saw senior
management as role models and that management behaviour was fundamental in
setting standards for employee behaviour, a view expressed by one of the banking
directors:
. . . one of our directors, decided to run the London Marathon, now all of the employees were
impressed by this and it sent out a strong message to the outside world that a director from a
bank was fit and healthy enough to do this and many positive associations were then made.
Finally, respondents were asked how important employee behaviour was in
influencing corporate identity. Most respondents stated that employee behaviour
influences customers and other stakeholders and employees actions are perceived as a
reflection of the corporate identity, thus employee behaviour is generally seen as a vital
component of identity. Other interviewees corroborated this view, for example, an
interviewee from an accountancy firm stated that the behaviour of individuals had a
significant impact on other employees:
. . . all of us influence each other, we re all driven to do well at the company and I think it is a
force of motivation.
This is also evidence of the link that exists between corporate culture and employee
behaviour. If there is a culture of hard work present within an organisation this will
positively translate itself into employee behaviour. Virtually all of the interviewees
stated that recruitment, training and education were vital in order to develop this
culture and emphasise this desired behaviour to employees.
Consequently, the majority of interviewees believe behaviour is integral to identity.
Behaviour was strongly associated with other components of identity such as culture
and communication providing more evidence of the interdependency between the
various components. The importance interviewees felt behaviour had on overall
corporate identity is unsurprising as ultimately what organisations  do will play a big
Dimensions of
part in shaping perceptions of what they  are .
corporate
identity
Corporate structure
Corporate structure consists of organisational structure and branding structure and is
cited by several authors as being a fundamental component of corporate identity
(Chajet, 1989; Ind, 1992; Olins, 1986; Strong, 1990).
859
Brand structure. Organisations engage in branding strategies in order to
differentiate themselves from competitors. Strong brands are fundamental in
establishing an identity in the marketplace, strengthening customer loyalty and for
many companies are vital in counteracting the growing power of retailers (Douglas,
2001).
Three varieties of corporate identity structures are put forward by Olins (1986).
First, the monolithic structure is one where the organisation uses a consistent name
and visual style and in consequence the corporate identity of the company is the brand
to the consumer. British Airways, Shell and IBM all tend to follow this approach.
Second, there is the endorsed structure, in which corporate identity of the parent
company is associated with the name of the subsidiaries. Finally, the branded structure
is one where products are differentiated through different brand names. Examples are
Unilever and Procter and Gamble.
Importance of brand structure
Two respondents emphasised the importance of the branded structure. The
interviewees from a food and domestic products conglomerate stated that:
Our corporate identity is not really in place to boost our image to consumers. It s there for
other groups such as investors or graduates. Our brands are what make us successful in the
fast moving consumer goods market. No one really cares who is behind the brands unless the
company gets a bad reputation.
Similarly, the interviewee from the trading (conglomerate, tobacco) company stated
that the brand identity was far more important to consumers than the overall corporate
identity. He asserted the vast majority of consumers were unaware of the companies
behind the brands in the cigarette industry and that brand identity was their sole
source of competitive advantage.
On the whole, the interviewees had a range of views concerning the relationship
between brand structure and corporate identity. Some felt that brand structure in itself
was not a component of identity and was more a consequence of it, in that the identity
dictated the subsequent brand structure. Others felt that the brand strategy was a
component of identity as  what the organisation produced had a considerable impact
on what it  is in the eyes of stakeholders.
Organisational structure. The organisational structure is associated with the
organisational hierarchy, lines of communication and reporting responsibilities. Of
greatest importance is the degree of centralisation and decentralisation, in terms of
both geography and across products (Cornelissen and Harris, 2001; Van Riel, 1995;
Varey and Lewis, 2000). Organisational structure is inexorably related to brand
structure. A corporate dominant structure (Laforet and Saunders, 1999) leads to
monolithic identity and is more likely to be implemented by centralised companies due
to the opportunities it allows for standardisation. Companies with a high degree of
centralisation are likely to deny autonomy to subsidiaries. Conversely, where there is a
EJM
high degree of decentralisation, subsidiaries often develop very distinct identities.
40,7/8
Olins (1986) argues that this allows managers far more autonomy and that
brand-dominant structures are far more likely to emerge. This situation was found to
be true in one of the conglomerates where the interviewee stated that brand identities
were distinct from the overall corporate identity.
860
Importance of organisational structure
There were again mixed opinions as to whether or not organisational structure is a
tangible component of corporate identity but the general consensus tended to be that it
was a product of corporate identity rather than something that makes up the identity,
as expressed by this interviewee:
. . . I think the corporate structure is a tool; the corporate identity is set up and then the
corporate structure is developed to deliver the aspirations which are clear in the corporate
identity.
A respondent from a marketing consultancy believed that corporate structure has a
strong impact on corporate culture. However, he felt that culture was a distinct entity
from identity. He argued that identity was solely associated with external perception of
the company.
The responses naturally show that different organisations take different
approaches to corporate identity concept and its relation to corporate structure
(Stuart, 1999a). The companies with diversified structures, i.e. the conglomerate in this
case, give more emphasis to its constituting parts and distinguish overall corporate
identity than the brand identities, whereas the companies with professional structure,
i.e. the marketing consultancy in this case, strongly mention the benefits of corporate
culture and take company identity as an external manifestation (for further discussion
about the link between structure and identity see Stuart, 1999a).
Many respondents claimed that structure was something that could easily be
changed, whilst identity and culture were far more enduring firm-specific
characteristics that evolved over time and were difficult to change. The impact of
changes of structure on corporate identity was also inconclusive. Some respondents felt
that permanent structural changes could have a far-reaching impact on culture, whilst
others stated that these changes could be short term in nature and subsequently were
only of fleeting importance. Although it is not very clear from the responses whether
corporate identity is a product of corporate structure or vice versa, it could be
concluded that corporate structure has an interceding role in corporate identity
management (Stuart, 1999a).
Industry identity
Industry identity pertains to characteristics such as competitiveness, size and rates of
change, which influence the corporate identity of a company (Balmer, 1997). Companies
operating in an industry with a clear and strong identity may adopt very similar
strategies in areas of corporate identity management, and in consequence they
commonly develop similar identities. The influence of industry identity is particularly
significant in certain industries in this study, in particular the banking and oil
companies.
Importance of industry identity
Dimensions of
Virtually all of the respondents claimed that the corporate identity of their
corporate
organisations was strongly influenced by the industry that they compete in. The
identity
evidence from an oil company is a good example of this. It appears that the company
has had difficulty in changing its identity due to the criticisms of its environmental
practices. Thus, a link between sources of uncontrollable communication and the effect
of industry identity is also clear. For example, criticism from environmental groups has
861
not only affected individual firms but also the entire industry. It appears that control
over their corporate identity was made more difficult because many stakeholders do
not differentiate between companies and may associate the oil industry with pollution
and exploitation. A respondent from the oil company reflected this view:
. . . in previous years the oil companies were dominated by technical concerns on the
exploration side and upstream business. But now it s more downstream, marketing to
consumers.
Hence, this particular oil company has begun to invest heavily in trying to improve the
perception that various stakeholders have of them. In consequence, perceptions of the
industry as a whole are improving, particularly because other oil companies are also
engaging in similar activities such as third party ethical and environmental audits.
The link between uncontrollable communication and its effect on industry identity
was again highlighted when speaking to an employee from an accountancy firm:
Yes, I mean we re all aware of the events in our industry and it would be ridiculous to argue
that our senior partners haven t tried to adapt our identity so that our reputation of integrity
and best-practice is maintained, even though we haven t actually been implicated in any of
the scandals.
The interviewee was referring to the accountancy scandals that have recently taken
place in America and it seems that these events have had a significant impact on all of
the companies in the accountancy industry, even those not associated with them. It
seems that media and public attention can have a massive impact on stakeholders
perceptions of the entire industry, which in turn shapes their perceptions of individual
firms within that industry.
In general, the respondents from the accountancy companies, oil companies and
banks felt that the industry identity had the most salient impact on their overall
corporate identity. Those working in companies that conduct the majority of their
business with other businesses rather than selling directly to consumers appeared to
believe that industry identity had less influence on corporate identity.
Corporate strategy
Corporate strategy is the blueprint of the firm s fundamental objectives and strategies
for competing in their given market. It thus determines what the company produces,
the level of profit made and stakeholder perceptions about the company. Many
commentators suggest that a strong link exists between corporate strategy and
corporate identity. Gray and Balmer (1998) see the major components of corporate
identity as being:  the company s strategy, philosophy, culture and organisational
design .
Differentiation strategy. Differentiation strategy is an aspect of overall corporate
strategy pertaining to the specific strengths of a company and how it chooses to
compete by using these. Many writers agree that this is strongly linked with corporate
EJM
identity as Simpson (1988) states differentiation takes advantage of a firm s strengths
40,7/8
that are important constituents of its basic identity.
Positioning strategy. Positioning strategy is associated with the identity that a
company strives for. Companies position themselves in order to be distinguished from
competitors and they do this through an analysis of their inherent strengths and
weaknesses.
862
Importance of corporate strategy
Corporate strategy is often instrumental in attempts to change corporate identity, a fact
that was substantiated by many interviewees. Another point claimed by many
interviewees was that corporate strategy could have a massive impact on identity,
particularly when it resulted in the restructuring of the workforce. A respondent from
the IT firm stated that:
Yes, it is having a very big impact. We had to focus, we had to restructure, we had to
downsize, in order to meet the strategic objectives and that had a big impact on the identity of
the company and there was a big impact particularly the internal employees start to wonder
what their future is and what the future of the company is.
An interviewee from the toy company spoke of how corporate identity provides
direction and purpose for his company and is therefore intrinsically linked to strategy:
Yes, the identity is useful in providing a sense of direction for employees and the strategy
provides the plan as to where the company is going, so really, neither can be complete without
the other.
Thus, strategy can be considered as a subset of corporate identity in this situation
because it provides the means by which identity is perpetuated throughout the
company. There was almost unanimous agreement concerning the importance of the
relationship of strategy with identity and further work in this area is necessary. One
such area maybe to determine the impact of strategic change on corporate identity,
which is becoming increasingly common in the form of downsizing and outsourcing.
Summary and conclusion
Every respondent had a unique perception of corporate identity and the majority of the
respondents claimed that corporate identity was an increasingly important
phenomenon. There was a considerable range of opinions amongst the interviewees
pertaining to the importance of the various components of the concept. To a large
extent this can be explained by the multidisciplinary nature of the term (Bick et al.,
2003). However, those working in the same company generally agreed on the
fundamental characteristics of the corporate identity of their firm.
In general, most interviewees heavily associated identity with the areas of corporate
design, communication, behaviour and strategy. However, there was no unanimous
agreement as to whether or not corporate culture was a product or determinant of
corporate identity.
The responses about controlled corporate communication reflect that marketing,
management and organisational communication are intertwined and it is hard to set
strict borders between them. However, managers ability to create an internal
understanding of the mission and vision of their organisation as well as its
communication strategy is considered as the main step in order to have effective
Dimensions of
external communication. The role of uncontrolled communication was stressed too.
corporate
Most of the respondents agreed that a better reflection of internal integrity of a
identity
company via its employees will have a positive impact on its perception, hence will
create favourable word-of-mouth. Another point also stressed was the management of
media relations.
The majority of the managers have mentioned that corporate design supports the 863
communication of a company s identity both internally and externally. However, more
emphasis is given to slogan as well as architecture and location by the respondents.
They have asserted that these three aspects help a company create a sense of
attachment for its employees and shape what consumers associate with it.
The respondents approaches to the link between corporate culture and corporate
identity are twofold. Some interviewees believed that corporate culture and corporate
identity are in fact inseparable, whilst others felt that corporate culture is distinct from
identity. However, the interviewees mentioned that corporate history, which preserves
company norms and practices over years; the founder of the organisation, who initially
sets the business philosophy of a company; country-of-origin, which links national
culture characteristics to a business s working principles and practices; and
sub-cultures, like different departments with different needs and desires as well as
different nationalities having stake in a company, have a considerable impact on
corporate culture. Therefore, it could be concluded that even if some respondents
excluded corporate culture from the components of corporate identity, an indirect
relationship between them is implicitly assumed in their responses.
The behavioural aspect of an organisation has been mostly associated with how
managers disseminate information to employees about their organisational goals and
practices. It is believed by many respondents that their organisations will have a better
image and gain more recognition if their employees are able to represent the
organisation s values to external audiences. Additionally, they mentioned that their
organisations reactions towards certain issues such as environmental problems will
convey cues about their company s identity.
The evidence from the interviews shows that corporate structure has an impact on
how brand structure of a company is determined and managed as well as how
companies with different hierarchical structures approach the concept of corporate
identity. For organisations with complex structures, corporate identity has a role in
communication with shareholders, investors etc. but individual brand identities are the
means of communication with consumers. Less sophisticated organisations emphasise
the link between structure and culture more and imply an indirect relationship between
corporate structure and identity.
The industry identity is also deemed as having an effect on how individual
companies are viewed. Companies especially in high profile sectors such as oil and
accounting have to carefully manage their relationships with the intermediaries such
as the media, NGOs etc. so that they can protect themselves from the potential bad
publicity of the industry in which they transact.
Lastly, the respondents have mentioned with high consensus that corporate
strategy provides the processes to be followed about how to manage their
organisations identities on a daily basis as well as in the long run. In other words,
corporate strategy determines what a company s identity is and is going to be.
From the preceding analysis, the following definition and the revised dimensions of
EJM
corporate identity are proposed:
40,7/8
Corporate identity is the presentation of an organisation to every stakeholder. It is what
makes an organisation unique and it incorporates the organisation s communication, design,
culture, behaviour, structure, industry identity and strategy. It is thus intrinsically related to
both the corporate personality and image.
864
The responses reveal that the companies studied approach corporate identity concept
more from a communications point of view encompassing both internal and external
communication. Therefore, the definition above is generated within the borders of
communication management theory, which also enables us to achieve our objective of
providing an operational definition of corporate identity (Cornelissen and Elving,
2003). It dissects the three elements of corporate identity mix, i.e. symbolism,
communication and behaviour (Van Riel, 1995), and incorporates the following aspects:
culture, structure, industry identity and strategy. These last four elements should be
considered from the communication perspective as well. For example, while
operationalising industry identity, the impact of communicated industry identity on
the perception of an organisation s identity should be measured. We believe that this
approach will aid further empirical research, since it provides measurable terms
(Cornelissen and Elving, 2003).
Implications
In this article, we have reviewed the literature to provide a theoretical background that
structures our investigation about how corporate identity is perceived (see Figure 1)
and which components are related to the concept in practice. Through the responses
given by the managers of the companies studied we present a view of components of
corporate identity in comparison to its theoretically defined dimensions.
Figure 2 depicts the revised components of corporate identity concept and the
sub-items for each category, which are deemed as the most important aspects by the
respondents. It mainly differs from the categories mentioned in the Stuart s (1999b)
model in the areas of corporate structure, corporate strategy, corporate culture and
corporate personality. In line with Bick et al. (2003) and Cornelissen and Harris (1999),
the definition proposed suggests that corporate strategy is about how a company
reacts in the market in terms of positioning and differentiation, whereas corporate
personality is a reflection of strategy and culture through mission and core values of an
organisation. Therefore, personality dimension is implicitly incorporated in mission,
vision and values whereas Stuart s model (1999b) mentions it as separate dimension.
Corporate culture is deemed as the context (Hatch and Schultz, 1997) by which history,
founder of the organisation, country-of-origin and sub-cultures are manifested into
mission, vision and values of a company, whereas Stuart (1999b) models it as the
overarching context to all dimensions. It recognises the environmental forces as
Stuart s (1999b) model does. However, it highlights industry identity as the major
aspect of environmental forces.
The article posits an operational definition on the basis of the information gathered
from the companies under investigation which may aid future research. First,
developing sub-items and their measures for each dimension presented in the proposed
definition and examining the possible relationships between them might be the further
Dimensions of
corporate
identity
865
Figure 2.
The revised categorisation
of corporate identity
dimensions and their
sub-items
step. Taking that step also helps to test the value of the definition proposed in this
EJM
article. Second, while the dimensions of corporate identity and importance of its
40,7/8
management has been the focus of this paper, additional empirical research which
considers consequences of corporate identity management in relation to company
performance indicators could enhance overall understanding of the concept
(Cornelissen and Elving, 2003; Dacin and Brown, 2002).
866 For managerial implications, this investigation suggests that there are considerable
benefits to be gained from developing a virtuous corporate identity including
motivation of employees, improving customer loyalty and bringing investment into a
company. From this exploratory study we have developed a more all-encompassing
definition of corporate identity as well as formulated the revised corporate identity
categorisation. We believe that this categorisation provides a useful starting point for
senior company management to formulate the appropriate corporate identity strategy
for their company. Furthermore, this categorisation will enable companies to conduct
research that aims to find out which specific components of corporate identity
stakeholders find most important. Companies can then use this information to manage
their corporate identity and project the desired identity to the different stakeholders.
There are certain key issues that need to be addressed:
.
The sustainability of corporate identity in providing both competitive advantage
and trust-based relationship with stakeholders. The majority of the respondents
stated that their corporate identity had changed significantly in the last 5-10
years. Management, in many cases with the help of external consultants, had
initiated these changes and their short-term nature may result in stakeholders
questioning whether or not their identities are genuine or just a form of hype.
.
The existence of sub-cultures provides a useful reminder that organisations are
made up of many heterogeneous social groups. Pratt and Foreman (2000) argue
that the existence of these different groups is one reason why organisational
identity is a strategic tool that requires serious consideration. Organisations can
take on multiple identities for example depending on different departments such
as marketing or finance or in the case of a conglomerate, the industry sector in
which a subsidiary company operates (Balmer and Greyser, 2002).
.
The evidence from the interviews shows that corporate identity is a more
complex issue than being a straightforward phenomenon (Cornelissen and
Elving, 2003). An effective corporate identity management requires considering
all the dimensions mentioned in the proposed definition as well as the
contingencies relevant to them, especially, when forming positioning strategies.
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About the authors
T.C. Melewar is Professor of Marketing and Strategy at Brunel Business School, Brunel
University, London, UK.
Elif Karaosmanoglu is a member of faculty at Istanbul Technical University, Istanbul,
Turkey.
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