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The less transparent, the more attractive? A critical perspective on transparency and place branding

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  • Vincent Mabillard

    (University of Lausanne)

  • Renaud Vuignier

    (University of Lausanne)

Abstract

According to recent surveys, transparency has become a key issue in business decisions. Foreign firms increasingly view transparent economic policies as crucial in their investment planning. Evidence has shown that clear and predictable environments play an important role in companies’ decisions to develop their activities in a specific place. Nowadays, place branding scholars and practitioners alike call for more transparency and responsibility in branding strategies, assuming that trust, enhanced by transparency, is needed to improve the attractiveness of a place. In a study by a major consulting firm, investors in Switzerland specifically mentioned stability and transparency as the most important location factors. However, the country scores poorly in terms of financial transparency. This paradox reveals a degree of confusion about the nature of transparency, which is addressed in this article. We argue that, while transparency of the regulatory framework can effectively improve the attractiveness of a place, opacity of legal requirements may also attract foreign investors. In this sense, transparency of and required by the rules can be at odds. A nuanced approach to transparency and a more detailed analysis are needed to provide a clearer explanation of the relationship between transparency and the attractiveness of a place.

Suggested Citation

  • Vincent Mabillard & Renaud Vuignier, 2017. "The less transparent, the more attractive? A critical perspective on transparency and place branding," Place Branding and Public Diplomacy, Palgrave Macmillan, vol. 13(4), pages 348-359, November.
    • Handle: RePEc:pal:pbapdi:v:13:y:2017:i:4:d:10.1057_s41254-016-0051-5
    DOI: 10.1057/s41254-016-0051-5
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    References listed on IDEAS

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    Cited by:

    1. Renaud Vuignier, 2018. "Attracting Investments and Companies: Federal Multi-Level Collaboration in Switzerland and Canada," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-30, October.
    2. Renaud Vuignier, 2017. "Place branding & place marketing 1976–2016: A multidisciplinary literature review," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 14(4), pages 447-473, December.
    3. Vincent Mabillard & Renaud Vuignier, 2021. "Exploring the relationship between transparency, attractiveness factors, and the location of foreign companies: what matters most?," Place Branding and Public Diplomacy, Palgrave Macmillan, vol. 17(4), pages 304-316, December.
    4. Xuming Qian & Mohammad Akefi Ghaziani, 2024. "The Relationship between Transparency Obligations and Foreign Investment in Renewable Energies: Realising the Potential Role of IIAs," Energies, MDPI, vol. 17(11), pages 1-17, June.
    5. Cicatiello, Lorenzo & De Simone, Elina & Ercolano, Salvatore & Gaeta, Giuseppe Lucio, 2021. "Assessing the impact of fiscal transparency on FDI inflows," Socio-Economic Planning Sciences, Elsevier, vol. 73(C).

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