Understanding Changes on the Country-of-origin Effect of Portugal

Abstract The purpose of this study is to understand the international perception of Portugal, as well as the strategies used by Portuguese companies to overcome any possible negative country-of-origin (COO) effect. The paper focuses on companies belonging to different Portuguese businesses: wine, footwear and electromechanical. Cases were chosen because of the dynamic process that was correctly put forward at different levels. The results show that Portuguese companies are interested in getting to know how to accommodate or be part of that dynamic process, as this seems to be crucial if they want to succeed in international markets. The perception of Portugal is improving, and there seems to be signs of a positive COO effect being created in some instances. Most of the achievements are due to the previous success of Portuguese businesses and businesspeople in international markets that have been able to create a positive reputation. The key to success seems to be rooted in how companies combine their unique resources with technological innovations and strategic tools, backed by public policy. This study contributes to enhance the knowledge of managers on the COO effect and its effects on companies, by presenting different levels of analysis: company, industry and country level.