5. Discussion
The global economy is experiencing push backs on long-held beliefs tied to the overall notion of globalization (O'Sullivan, 2016). This shift suggests a number of implications for B2B brands that are positioned as global or local (Mann & Spegele, 2017). Accordingly, this research set out to examine whether B2B brands perceived to be global and local have any bearing on how B2B buyers approach their purchase decisionmaking processes. This research adopts a standard brand alliance framework, rooted in signaling theory, to explicate the contingent effect of a brand ally's PBG or PBL on an unknown focal brand's perceived quality evaluations. Thus, it sheds light on previously unexplored phenomena related to the role of PBG and PBL in B2B settings, and their relevance within a co-branding context.
In Study 1, based on a U.S. sample, the findings reveal that both perceived globalness and localness of the brand ally matter to B2B buyers in how they evaluate an unknown focal brand in a brand alliance. This baseline finding is immediately impressive since the positive impact of the brand ally's PBG and PBL on buyers' perceived quality evaluations of the unknown focal brand cannot be attributed to brand familiarity towards the ally brand since it was controlled in the analysis. Notably, the impact of PBG and PBL on the perceived quality evaluations of the focal brand operate via different process mechanisms. Study 1 reveals that the PBL of the brand ally serves to mitigate the risk associated with purchasing an unknown brand, consistent with the risk reduction hypothesis. However, in the case of PBG, the bonding conceptualization is not supported since the effect of PBG of the brand ally on the perceived quality evaluations of the focal brand occurs directly. Utilizing a Brazilian sample, Study 2 also finds that brand localness matters to B2B buyers. However, the influence of PBG on perceived quality evaluations of the focal brand found in Study 1 was not replicable. Interestingly, in Study 2, by way of examining additional moderators, we find that buyer ethnocentrism conditions the indirect effect of PBL of the brand ally on the perceived quality evaluations of the focal brand via the risk-reduction path. However, buyers' attitudes towards globalization, had no significant impact on the pattern of results associated with PBG.