Art and Business: Perspectives on Art-based Management [1st ed.] 9783030517687, 9783030517694

Table of contents :
Front Matter ....Pages i-ix
Introduction (Stefania Masè)....Pages 1-5
Front Matter ....Pages 7-7
Art and Business (Stefania Masè)....Pages 9-20
Systematic Literature Review in the Field of Art and Business (Stefania Masè)....Pages 21-47
Front Matter ....Pages 49-49
Art and Business a Relational Model (Stefania Masè)....Pages 51-67
Art and Corporate Social Responsibility (Stefania Masè)....Pages 69-79
Art and Communication (Stefania Masè)....Pages 81-98
Art and Cross-Cultural Business (Stefania Masè)....Pages 99-112
Art and Business Collections (Stefania Masè)....Pages 113-122
Art and Consumer Perception (Stefania Masè)....Pages 123-135
Discussion and Conclusion (Stefania Masè)....Pages 137-146

Citation preview

International Series in Advanced Management Studies

Stefania Masè

Art and Business

Perspectives on Art-based Management

International Series in Advanced Management Studies Editor-in-Chief Alberto Pastore, Sapienza University of Rome, Rome, Italy Series Editors Giovanni Battista Dagnino, University of Rome LUMSA, Palermo, Italy Marco Frey, Sant’Anna School of Advanced Studies, Pisa, Italy Christian Grönroos, Hanken School of Economics, Helsinki, Finland Michael Haenlein, ESCP Europe, Paris, France Charles F. Hofacker, Florida State University, Tallahassee, FL, USA Anne Huff, Maynooth University, Maynooth, Ireland Morten Huse, BI Norwegian Business School, Oslo, Norway Gennaro Iasevoli, Lumsa University, Rome, Italy Andrea Moretti, University of Udine, Udine, Italy Fabio Musso, University of Urbino, Urbino, Italy Mustafa Ozbilgin, Brunel University London, Uxbridge, UK Paolo Stampacchia, University of Naples Federico II, Naples, Italy Luca Zanderighi, University of Milan, Milan, Italy Assistant Editor Michela Matarazzo, Marconi University, Rome, Italy

More information about this series at http://www.springer.com/series/15195

Stefania Masè

Art and Business Perspectives on Art-based Management

Stefania Masè IPAG Business School Nice, France

ISSN 2366-8814 ISSN 2366-8822 (electronic) International Series in Advanced Management Studies ISBN 978-3-030-51768-7 ISBN 978-3-030-51769-4 (eBook) https://doi.org/10.1007/978-3-030-51769-4 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Acknowledgment

The realization of this book would never have been possible without the invaluable support of many people. First of all, thank you to the anonymous reviewers, who have enriched the structure and contents of the book with their invaluable advice. Special thanks to all the loved ones who sustained me in the long elaboration of this work. Infinite gratitude to Professor Elena Cedrola (University of Macerata, Italy), and Professor Genevieve Cohen-Cheminet (Sorbonne University), who have supported me since the beginning of my career. Thank you to my colleague Ksenia Silchenko, without whom the case study dedicated to Prada would not have been as thorough. An equal thank you to the (former) students Sara Pistolesi and Anna Nedrotti for their help in searching information for the case studies dedicated to Dolce & Gabbana, Tiffany, Gucci, and Hermès. Finally, thanks to the editors of this book collection, for having allowed these efforts to take on a tangible form.

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Disclaimer

Certain sections of this book are a revised and updated version of the doctoral dissertation the author defended at Sorbonne University on the 1st of February, 2016. Reference Masè, S. (2016). Art & Business from sponsorship and philanthropy to the contemporary process of artification (Unpublished doctoral dissertation). Sorbonne University, Paris (France) & Macerata University, Macerata (Italy).

vii

Contents

1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part I

1

A Definition of Art and Business

2

Art and Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

3

Systematic Literature Review in the Field of Art and Business . . . .

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Part II

A Detailed Analysis of the Main Lines of Research in Art and Business

4

Art and Business a Relational Model . . . . . . . . . . . . . . . . . . . . . . . .

51

5

Art and Corporate Social Responsibility . . . . . . . . . . . . . . . . . . . . .

69

6

Art and Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Art and Cross-Cultural Business . . . . . . . . . . . . . . . . . . . . . . . . . . .

99

8

Art and Business Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

9

Art and Consumer Perception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

10

Discussion and Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

ix

Chapter 1

Introduction

Abstract The main aim of this work is to understand how and why firms belonging to different industries connect with the arts for their strategic purposes. To investigate this issue, we carried out a systematic literature review by combining the fields of art and business. The result of this inquiry is the identification of six subcategories able to describe art and business as relational model, corporate social responsibility or communication strategy. Connecting art and business can be beneficial in a crosscultural perspective, or a financial viewpoint, via the construction of corporate art collections. This apparently unusual connection between art and business can also assure companies a favorable effect in terms of consumers’ perception. Every literature strand we identify represents a brick that can be used by companies to build-up their art-based strategies. A short case study at the end of every chapter will give a concrete example of those strategies.

The artworld is commonly correlated with positive values and meanings that many companies want to appropriate to seduce their consumers (Comunian, 2008, 2009; Dell’Era, 2010; Hagtvedt & Patrick, 2008a, 2008b; Schroeder, 2005). Historically financial, oil, and gas, or tobacco companies were involved with the arts for image purposes (Martorella, 1996). More recently, businesses related to the fashion luxury sector were prone to using art-based strategies to transform their products into true artworks, to justify increasing high production volumes (Dion & Arnould, 2011; Kapferer, 2012, 2014; Kapferer & Valette-Florence, 2016; Riot, Chameret, & Rigaud, 2013). As a result, companies belonging to different industries have an interest in building a relationship with the art world. This book focuses especially on the relationship between companies and the visual arts. The main aim is to highlight the theoretical basis underpinning the area of

This chapter is revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016. © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_1

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1 Introduction

analysis labeled art-based management, which considers the arts as a management resource (Carlucci & Schiuma, 2018a, 2018b). Companies can pursue an art-based strategy by relating to the arts through various ways, such as through sponsorship or philanthropy dedicated to supporting the arts or by creating special foundations (Kapferer, 2012, 2014). The contemporary scene shows that there are new, understudied phenomenons changing the relationship of Art and Business. From the premises described above, this work is based on a specific demand: Do firms belonging to different industries connect with the arts for their strategic purposes? If we can answer positively to this question, it might be important to understand: • Which are the sectors that apply art-based strategies? • What are the different possibilities to build up an art-based strategy? • Is there any difference in the Art and Business relationship across cultures? In order to answer these questions, a massive literature analysis has been developed in the field of Art and Business together with the identification and description of the main lines of research attributable to this area of study. After a first chapter devoted to a better definition of the two counterparts Art and Business and a general analysis of this relationship via some pertinent and contemporary examples, the following Chap. 2 introduces the methodology and describes every single step inherent in a rigorous literature review appropriate to management studies. The work was carried out through the use of a methodology called a systematic literature review, a technical analysis of the literature pertaining to the scientific movement based on factual evidence (evidence-based movement) (Briner & Denyer, 2012; Briner, Denyer, & Rousseau, 2009; Dietz, Antonakis, Hoffrage, Krings, Marewski, & Zehnder, 2014; Nutley & Davies, 2000; Nutley, Walter, & Davies, 2003, 2009). The decision to use as rigorous a literature review method as possible stems from the desire to define the limits of an area of study that can be addressed from different points of view: from sociology to cultural policies and cultural studies. While trying not to neglect any of these important contributions to the literature, the audit work focused on literary production in the management area within Art and Business. In keeping with the conditions and parameters specific to a systematic literature review, the analysis was conducted in two phases. During the first phase of the research, the review was carried out on 28 magazines in marketing and management, identified as fundamental to the study area of arts management and arts marketing (Rentschler & Kirchner, 2012 Rentschler & Shilbury, 2008). The 28 journals were analyzed from 1987 until December 2018; the starting year was chosen because it was identified as the moment when the field of arts management received academic recognition (Rentschler & Kirchner, 2012; Rentschler & Shilbury, 2008). Through this analysis, articles were reviewed and then subjected to an operation of skimming according to criteria defined by an intersectoral research panel formed

1 Introduction

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by an expert in visual arts, a marketing expert, and an expert in the area of brand management. This first phase of research has led to a selection of 53 items that have been analyzed in-depth and whose keywords have been used for the second stage of research that was conducted on the main database of literature in the area of economics. During the second stage of the research other 69 articles were found and read. Upon completion of the literature review, 122 articles were collected and considered valid for the study of Art and Business. A comparative operation was then carried out between the 122 items collected, which allowed highlighting the similarities and differences between the various investigations. The comparative work allowed identifying six research areas attributable to the study of Art and Business. The six subcategories that were identified in the Art and Business literature are listed below: 1. 2. 3. 4. 5. 6.

Art and Business: a relational model. Art and Corporate Social Responsibility. Art and Communication. Art and Cross-Cultural Business. Art and Business Collections. Art and Consumer Perception.

Each subcategory of literature is composed of a set of articles bound together by a common theme. Each of the subcategories identified was then analyzed in-depth, highlighting concepts and research methods retained fundamental to the understanding of the study in question: the possible relationship forms between Art and Business. The six subcategories are deeply analyzed in the following Chapters composing Part Two of the book, each of them offering a theoretical overview underpinning the research strand, and a short case study. The first subcategory, called “Art and Business: a relational model” can be considered as an introductory subcategory to the study in question. The authors belonging to this first research line look at the intersection between the two sectors as in a relational form of business, regardless of the actual mode through which the relationship is realized, whether it be through a sponsorship, a philanthropic relationship, or through different forms of connection between the two fields. The second subcategory “Art and Corporate Social Responsibility” focuses on the positive image assured to the companies involved in sustaining the arts, mainly managed via philanthropic activities. “Art and Communication” focuses on the ability of the arts to be a powerful communication tool for different companies, via advertising activities, and especially via arts sponsorship. The subcategory “Art and Cross-Cultural Business” mainly refers to the fact that the links between Art and Business were initially uncovered in English-speaking countries, mainly the USA and England, around the 1980s (Martorella, 1996; Wu, 2003, Zolberg, 2000). “Art and Business Collections” is a Chapter dedicated to the exploitation of the financial power of the arts, commonly targeted by companies as proficuous

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1 Introduction

investment activities, with positive collateral results in terms of communication. The sixth subcategory labeled “Art and Consumer Perception” outlines a series of articles devoted to the study of the consumer’s reactions about the use of art for strategic business purposes. The reason of realizing a Systematic Literature Review entirely devoted to reviewing the field of Art and Business is due to the need of a careful methodical attention this area of research had not been received yet. Our decision went for a systematic literature review because it is a rigorous methodology introduced recently in the area of management (Tranfield, Denyer, & Smart, 2003). Before starting the bibliographic research, it is necessary to define the two counterparts that will be the object of this analysis: art and business. Apparently, the two fields of analysis are very far apart, but a closer look immediately reveals the possible contact points between the two. Their overlapping and adjacency will be analyzed in the course of the text. The first chapter is the baseline dedicated to the explanation of what is considered art and what will be instead considered a business for the purposes of this specific analysis. After a proper definition of the two components, examples of some of the relational reality between art and business will be listed. Those examples are taken from the most diverse sectors and from a European or international perspective. The examples coming by the observation of reality, together with the definitions of the two fields of analysis, will constitute the pillars of the deep analysis of the literature that constitutes the heart of this work.

References Briner, R. B., & Denyer, D. (2012). Systematic review and evidence synthesis as a practice and scholarship tool. The Oxford Handbook of Evidence-Based Management. https://doi.org/10. 1093/oxfordhb/9780199763986.013.0007 Briner, R. B., Denyer, D., & Rousseau, D. M. (2009). Evidence-based management: Concept cleanup time? Academy of Management Perspectives, 23, 19. https://doi.org/10.5465/amp.23. 4.19 Carlucci, D., & Schiuma, G. (2018a). An introduction to the special issue “the arts as sources of value creation for business: Theory, research, and practice”. Journal of Business Research, 85, 337–341. https://doi.org/10.1016/j.jbusres.2017.10.034 Carlucci, D., & Schiuma, G. (2018b). The power of the arts in business. Journal of Business Research, 85, 342–347. https://doi.org/10.1016/j.jbusres.2017.10.012 Comunian, R. (2008). Culture Italian style: Business and the arts. Journal of Business Strategy, 29, 37. https://doi.org/10.1108/02756660810873209 Comunian, R. (2009). Toward a new conceptual framework for business investments in the arts: Some examples from Italy. Journal of Arts Management Law and Society, 39, 200. https://doi. org/10.1080/10632920903218521 Dell’Era, C. (2010). Art for business: Creating competitive advantage through cultural projects. Industry and Innovation, 17, 71. https://doi.org/10.1080/13662710903573844

References

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Dietz, J., Antonakis, J., Hoffrage, U., Krings, F., Marewski, J., & Zehnder, C. (2014). Teaching evidence-based management with a focus on producing local evidence. Accessed October 21, 2019, from https://serval.unil.ch/resource/serval:BIB_9EC91D46ECD7.P001/REF. Dion, D., & Arnould, E. (2011). Retail luxury strategy: Assembling charisma through art and magic. Journal of Retailing, 87, 502. https://doi.org/10.1016/j.jretai.2011.09.001 Hagtvedt, H., & Patrick, V. M. (2008a). Art and the brand: The role of visual art in enhancing brand extendibility. Journal of Consumer Psychology, 18, 212. https://doi.org/10.1016/j.jcps.2008.04. 010 Hagtvedt, H., & Patrick, V. M. (2008b). Art infusion: The influence of visual art on the perception and evaluation of consumer products. Journal of Marketing Research, 45, 379. https://doi.org/ 10.1509/jmkr.45.3.379 Kapferer, J. N. (2012). Abundant rarity: The key to luxury growth. Business Horizons, 55, 453. https://doi.org/10.1016/j.bushor.2012.04.002 Kapferer, J. N. (2014). The artification of luxury: From artisans to artists. Business Horizons, 57, 371. https://doi.org/10.1016/j.bushor.2013.12.007 Kapferer, J. N., & Valette-Florence, P. (2016). Beyond rarity: The paths of luxury desire. How luxury brands grow yet remain desirable. Journal of Product and Brand Management, 25, 120. https://doi.org/10.1108/JPBM-09-2015-0988 Martorella, R. (1996). Arts and business: An international perspective on sponsorship. Westport, CT: Greenwood Publishing Group. Nutley, S., & Davies, H. (2000). Making a reality of evidence-based practice: Some lessons from the diffusion of innovations. Public Money and Management, 20, 35. https://doi.org/10.1111/ 1467-9302.00234 Nutley, S., Walter, I., & Davies, H. T. O. (2003). From knowing to doing: A framework for understanding the evidence-into-practice agenda. Evaluation, 9, 125. https://doi.org/10.1177/ 1356389003009002002 Nutley, S., Walter, I., & Davies, H. T. O. (2009). Promoting evidence-based practice: Models and mechanisms from cross-sector review. Research on Social Work Practice, 19, 552. https://doi. org/10.1177/1049731509335496 Rentschler, R., & Kirchner, T. A. (2012). Arts management/marketing journal citation analysis: Assessing external impact. Arts Marketing: An International Journal, 2(1), 6–20. https://doi. org/10.1108/20442081211232981 Rentschler, R., & Shilbury, D. (2008). Academic assessment of arts management journals: A multidimensional rating survey. International Journal of Arts Management, 10(3), 60–71. https://www.jstor.org/stable/41064964 Riot, E., Chamaret, C., & Rigaud, E. (2013). Murakami on the bag: Louis Vuitton’s decommoditization strategy. International Journal of Retail & Distribution Management, 41, 919. https://doi.org/10.1108/IJRDM-01-2013-0010 Schroeder, J. (2005). The artist and the brand. European Journal of Marketing, 1, 209. https://doi. org/10.1108/17506200710779521 Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidenceinformed management knowledge by means of systematic review. British Journal of Management, 14, 207–222. https://doi.org/10.1111/1467-8551.00375 Wu, C.-T. (2003). Privatising culture: Corporate art intervention since the 1980s. London: Verso. Zolberg, V. (2000). Privatization: Threat or promise for the arts and humanities? The European Journal of Cultural Policy, 7(1), 9–27. https://doi.org/10.1080/10286630009358130

Part I

A Definition of Art and Business

Chapter 2

Art and Business

Abstract When combining the two terms of Art and Business, it is apparently easier to account for the bond secured between an artist and a financial or oil enterprise than to account for the bond between artists and the luxury fashion sector, or the entertainment industry. It is thus necessary to further explain how Art and Business are bonded today. This means further exploring the concepts of art and artcraft, as well as giving a definition of industry. We found that this meant looking into the— not well defined—borders of Creative and Cultural Sector. This is the starting point of our analysis.

2.1

When Is Art and when Is Business?

The notion of the ontology of art refers to the criteria used to define art today in our contemporary context. The desire to give a definition—albeit generic—to the concept of art is linked to the need to delineate boundaries between the two fields of business and art. It might seem obvious enough to define what art is in contrast to other “lower” forms of production, however, the hierarchy between art and crafts is no longer the accepted criterion used to define what art is. If we look back into history, the hierarchy between art and crafts was posited as early as the 1700s and it conversely legitimized a division between artisans and artists. While the artisan remained the ideal worker characterized by manual skills, the artist combined craft, genius, creativity, and freedom. This held until the early twentieth century. Until then, the freedoms of the artist and his independence vis-à-vis the client or sponsor were the ideas that predominantly characterized the artist’s role. In the first half of the nineteenth century, this view of the independent artist guided by sole inspiration reached its peak in Romanticism (Shiner, 2012). It

This chapter is revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016. © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_2

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was at that moment that the division between fine arts and popular arts became commonplace. While the former was said to be driven by pure esthetic research, the latter was said to be guided above all by functional requirements. However, by the turn of the twentieth century, the Modernist Revolution profoundly challenged these commonly held views of art and artists. Modernism in the arts preserved a belief in the superior value of the arts but they also promoted new views and practices that no longer supported any division between craftsmanship and artistry, between the artist and the artisan, professional and amateurs, or between high art and lower art forms. This paradigm shifts between art and nonart opens up to different forms of collaboration among artists and other fields. Since Modernism in the West, a twin process has been underway which has radically changed our relation to art and ordinary objects: “The 20th century, on the other hand, no longer knows the unique standard, and sees the multiplication of bodies of recognition. It is characterized by an incessant process of absorption and requalification of new forms in art. The border is constantly being redefined and the race for value seems endless.” (Our translation from Heinich, 1998: 72). “Among the conditions that make this process possible and explain its extension, we can note two: the emphasis on art as an activity (and not as an object), and the multiplication of the instances of legitimation. Those shifts have important implications.” (Our translation from Shapiro, 2004: 3).

The need to define art has thus lost its relevance since art is no longer the only or the highest form of creative expression. All aspects and activities of daily life are now said to present their own form of inventiveness. Commonly managerial literature wishes to emphasize that there are two kinds of art, high art, and popular art. The two types of art are then placed along a hypothetical continuum in which various artistic events can be arranged, recorded between the two extremes mentioned (Carrillat, D’Astous, & Colbert, 2008; Colbert, D’Astous, & Parmentier, 2005a, 2005b; Hirshman & Wallendorf, 1982). In this way, however, it is ignored a well-established concept in the art world: their non-hierarchization. The view of art as a practice that is not ordered hierarchically is relatively recent and can be traced back to the sphere of research of British cultural studies. For almost all of the twentieth century culture in its most elevated assumption was identified with the fine arts, or, with the classic works of painting, literature, and music which only a certain refined élite could access. It is a well-known fact that this definition of culture was an implicit hierarchy of forms of expression, normally divided into high and low. While it was possible to ascribe classical music and literature to “high-brow” culture or the fine arts, such expressive forms as folk tales, comics, and more recently, television or video games were ascribed to popular culture or “low-brow” art. The cultural system and contemporary art, however, reject this kind of distinction between arts of first and second order. This democratization of art has opened the way to the study of cultural forms once categorized as low (Mizroeff, 1999, 2002). At the same time, there is a growing interest in how the observers–consumers are involved in various cultural forms, and how these practices are the basis for the construction of meaning (Mitchell, 1994; Sontag, 2004).

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Actually, forms of hierarchy still exist in the cultural and artistic heritage, primarily for the creation of cultural policies. In this case, rather than resorting to a hierarchy of the arts, one should talk about their classification which is necessary for proper protection and support of cultural and creative industries that seem to take an increasingly significant role in contemporary production (Sacco, 2012; Throsby, 2008). Despite the growing importance of these sectors, the creators of cultural policies at an international level have not yet agreed on how to divide and classify the arts and creative businesses linked to them. Governments and supranational institutions recognize the creative and cultural industries are increasingly becoming key, as evidenced, for example, in the World Forum on Culture and Cultural Industries organized by UNESCO in Florence, in October 2014 (Unesco, 2014). One of the main points of the declaration of Florence is certainly the desire to build good indicators of value and impact that allow monitoring and measuring the contribution of culture to economic development worldwide. The need for a classification of these areas derives from the need to recognize the right importance in economic and statistical terms of a sector which proves to have still undefined, uncertain borders. The concept of “creative industries” emerged in the English-speaking environment, specifically in Australia in the year 1990. The country was the first to recognize the fact that cultural policies were a sphere of interest pertaining to economic policy. In Europe, the birth of the studies on “creative industries” is attributed instead to the British Government of Tony Blair that, in 1998 defined creative industries as “economic drivers” (Keanet, 2006). Subsequent studies have redefined the industry, mainly through the introduction of models such as the one based on copyright, adopted by the World Intellectual Property Organization (WIPO 2003) or the model adopted by the Statistical Office of UNESCO (Throsby, 2008). An interesting model is the one presented in the study prepared for the European Commission in 2006 (Keanet, 2006). This model is proposed as the basis for the classification of creative and cultural industries in Europe (Throsby, 2008). The study proposes a classification of cultural and creative enterprises that was taken up by the European Community Green Paper (2010). According to this classification, the field of cultural and creative enterprises divides primarily into two subgroups. The first set, called cultural sector, includes those industries whose outputs have exclusively cultural aims, and which are identified as fine arts. The second creative sector covers all those industries that use culture as an added value to their production (Keanet, 2006). The various cultural and creative enterprises are then organized in concentric processes that start from a core made up by the cultural industries, in which ideas originated, then expand to the outer circles where the creative industries are. The farther away from the center of cultural enterprises, the more likely the industrial output is to take over the cultural output (Throsby, 2008). Any production coming from firms belonging to the creative and cultural circles just described has in common the fact that it was formed on the basis of ideas which become tradable once been copyrighted (Keanet, 2006). A third circle can be also defined: it includes related industries or those industries that do not use culture and creativity as

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production inputs but are rather facilitators of the creation and production of works that use copyrighted material (Keanet, 2006). – Hearth of the arts (Non-industrial activities; products are prototypes that have the potential to be copyrighted) – Visual arts (handcrafts, painting, sculpture, photography) – Performing arts (theatre, dance, circus, festival) – Heritage (museums, libraries, archaeological sites, archives) Circle 1 Cultural industries (Industrial activities protected by intellectual property rights for mass reproduction) – – – – –

Movies and video Television and radio Videogames Music Publishing (books, newspapers, magazines)

Circle 2 Industries and creative activities (Using creative elements, protected by copyright and eventually by other intellectual property rights such as brands) – Design (fashion, graphic, product, interior) – Architecture – Advertising Circle 3 Connected industries (The definition of this sector is very large and involves many other economic sectors such as the ICT) – Pc producer – Mobile telephones (Keanet, 2006). A more recent definition of Creative and Cultural Sector is the one given by Policy Department for Structural and Cohesion Policies of the European Parliament; in this study industries and organizations belonging to the Creative and Cultural Sector can be both market or nonmarket oriented, and “include inter alia architecture, archives, libraries and museums, artistic crafts, audiovisual (. . .), tangible and intangible cultural heritage, design, festivals, music, literature, performing arts, publishing, radio and visual arts” (KEA & PPMI, 2019: 11). At this point, however, the criteria for the division of the different cultural and creative businesses still tend to be subjective. For example, Throsby (2008: 150) incorporates the concept of concentric circles but companies contained within the various circles are different from those indicated by the previous reports: – Core creative arts Literature—music—performance art—visual art – Core cultural industries Movies—museums—galleries—libraries—photography

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– Large cultural industries Heritage services—publishing and printing—TV and radio—video and computer games – Related industries Advertising—architecture—design—fashion The main criticism that can be levelled against the model of concentric circles is its static nature. A visual artist could, for example, produce original artwork and, at the same time, work with the design industry. This is what happened with Takashi Murakami and Louis Vuitton (Riot, Chamaret, & Rigaud, 2013). In cases such as these, it is difficult to place an industry or a professional in the right set of concentric circles model. To overcome this shortcoming, the author suggests we calculate the cultural content of products originating in creative and cultural industries. This can be addressed through the observation of cultural inputs used in the production itself, for example, combining creative work with creative occupation. The production of creative output from occupations, such as writer, composer, visual artist, film director, video maker, sculptor, is located at the heart of a concentric pattern. They are followed again by creative interpretations practiced by performers (dancing, acting, music, and playing), and then by the creative services which provide support as light designers or music and film producers. To improve his model, Throsby (2008) proposes a comparative study of five (English-speaking) countries: Australia, Canada, New Zealand, the UK, and the USA on the employees of cultural and creative sectors, and the results show a different situation from country to country. There seems to be no agreement between countries or between different models about which activities should be included inside each circle of cultural and creative industries. Despite this, the presentation of these studies is useful for the purpose of this research, to better understand the path taken by different companies through the application of an art strategy. As can be seen, the models presented in the reports released by the European Parliament’s Committee on Culture and Education, and the ones proposed by David Throsby, industries as fashion, architecture, or advertising were always positioned between the outer spheres of the creative and cultural industries (KEA & PPMI, 2019; Keanet, 2006; Throsby, 2008). Those industries are separated from the visual arts where they should belong if they were analysed through another theoretical perspective—specifically visual studies. It seems necessary at this point to give a specific definition of what is meant by visual art. The Oxford Dictionary (2015) provides the following definition of the term visual art: Definition of visual art: [COMMON NAME] Creative arts whose products can be appreciated by sight, such as painting, sculpture, and cinematography (in contrast to the literature and music): public exhibition of paintings or other works of visual art.

It is noted immediately that the main discriminating factor between visual art and non-visual art refers to the mode of perception through which artistic creation is enjoyed. In the case of visual arts, the perception that is stimulated is that of sight, hence the media that can be attributed to the sphere of the visual arts are all those

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accessible through the eyes, as painting, drawing, sculpting, photography, film, television, digital media, prints, and installations as well as architecture and design, comic books, graphic novels, fashion design, etc. (Keanet, 2006). Here then the dual characteristics of companies belonging to those sectors: while they belong to visual culture and the visual arts, they are expelled if we look at them from the point of view of the creative and cultural industries. This is the reason why they should be interested in supporting the arts, as the visual arts contained within the core of the model of concentric circles are a source of innovation for enterprises belonging to the outer circle of the same model. The arts are for them a source of inspiration on which companies can draw to renew their production activities. It is in the interest of these companies to build strong relationships with the arts, for two main reasons: 1. Because they can use visual arts as a source of innovation and creativity; 2. Because they seek to elevate the value of their image, like all other companies which choose to engage with the arts. Moreover, some companies operating in design, advertising, entertainment, or architecture businesses are part of the visual arts and, as such, they are the object of cultural interest. At the same time, some of these companies seek to use the arts as a vehicle to improve their brand image, implementing a strategy similar to that of the financial, oil, and tobacco industries (Kottasz, Bennett, Savani, Mousley, & Ali-Choudhury, 2007, 2008; Lindenberg & Oosterlink, 2011; Martorella, 1996; Wu, 2003). These companies belonging to the world of the visual arts raise interesting questions for the correct definition of the parts that build the Art and Business relationship. The fact that companies operating in the luxury fashion sector are so active in the construction of relational forms with the arts sector still denotes the existence of an implicit hierarchy between the two creative forms in mainstream culture. Businesses in fashion and luxury goods, trading trade in products that are not considered as true works of art but they can still gain added value from the interconnection with art forms considered “high” (Colbert et al., 2005a, 2005b; Hagtvedt & Patrick, 2008a, 2008b). The traditional hierarchization of the arts is still transmitted by museums that constitute the first channel through which the public is aware of what can and cannot be recognized as art (Alexander, 2014). The exhibits in art museums are considered validated, that is why museums are key players in the construction and maintenance of the legitimacy of the artists and their works. Acceptance by art institutions comes first and monitors the public recognition of what is art and what is not-art. This process of recognition has been a central concern for such newer art as photography in the nineteenth century or street art today. Starting in the 1980s, also fashion was legitimized as an art form thanks to the Museum Retrospective curated by Vogue editor Diana Vreeland and dedicated to Yves Saint Laurent, at the Metropolitan Museum of Art in New York between 1983 and 1984 (Blechman, 2013). At this point, we must say that companies can choose to cultivate one or more points of contact with the arts and their choice also depends on the sector they belong

2.2 Art and Business: Some Examples

15

to. If indeed it is true that all businesses can innovate through art, it is also true that some companies may count on additional benefits. Companies in the “related industries” mentioned by Throsby (2008) share with art the fact they belong to the world of visual arts. For these companies, an art-based strategy could be certainly more complete and involve the business reality more fully. Moreover, these companies are the ones which can get the most benefits from this strategy, because of the spillover effects that art can ensure (Hagtvedt & Patrick, 2008a, 2008b; Huettl & Gierl, 2012; Kapferer, 2012, 2014; Lee, Chen, & Wang, 2015).

2.2

Art and Business: Some Examples

With the Pop Art movement, born in Great Britain around 1950, and in the USA during the following decade, commercial brands often became the main subject of the canvas. This factor seems to have involuntarily nurtured brand capital (Schroeder, 2002, 2005) because art is a variable that can influence consumers in a favorable manner (Erjavec, 2012; Scrivener & Zheng, 2012). Brands such as Absolut made reference to visual artists for their advertising activities, while other brands capture the consumer’s attention involving artists for the production of packaging or limited series’ production (Lehu, 2011; Schmitt & Simonson, 1997). This type of activity, however, is more closely tied to the communication strategy of the company but, what art history shows in the twentieth century is that some contemporary artists like Andy Warhol, Keith Haring, Edward Ruscha, or Roy Lichstenstein and Damien Hirst—to name just five—considered that their freedom of choice as artists was not incompatible with their use of a commercial brand for the creation of their artworks. They challenged commonly accepted views of art predominantly considered to be disinterested, alien to business-related affairs or autonomous from everyday life. These views have been inherited from the nineteenth century and they still have undeniable currency in mainstream culture; however, they have lost their relevance in the art world since modernism. From the enterprises’ point of view, the appropriation of positive connotations from art to the benefit of the brand can also manifest itself through forms of “classical” communication, like advertising (Hagtvedt & Patrick, 2008a, 2008b). Nevertheless, many companies have become patrons of art, or have transferred funds to associations and art organizations, or have created appropriate foundations—as evidenced by Fondation d’Entreprise Ricard or the recent opening of the Fondation Louis Vuitton Pour l’Art Contemporain—following an art strategic activity which is aimed at the appropriation of positive connotations related to art and culture in general, to the benefit of the company and brand image. Some of the most active companies in Art and Business strategy are mostly financial firms (Kottasz et al., 2007, 2008). These companies are characterized by great opportunity to invest in art and by large gaps in terms of image and Social Responsibility (Behnke, 2007; Hoeken & Ruikes, 2005; Kottasz et al., 2007, 2008; Lindenberg & Oosterlink, 2011; Yoon & Shin, 2014).

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Art and Business relationships take place in different productive areas as the food industry presenting a wide variety of relational processes with the arts (Cohen & Csergo, 2012; Freeman, 2013). In the fashion industry, Benetton is probably one of the most recognized brands to develop a strategy of connection with the arts through the creation of Fabrica, a research center on experimental communication that has become a reference point for the Italian and international artistic community in charge of Benetton brand image. The research center was established in 1994 and it absorbed the production of Colors, a magazine founded in 1991 by Benetton in collaboration with artist Oliviero Toscani (Borgerson, Schroeder, Escudero Magnusson, & Magnusson, 2009; Dell’Era, 2010). Their communication style is reflected in the advertising of Benetton and in its brand image, thus definitely affecting its spreading recognition on international markets. Numerous Italian companies extensively resorts to art in order to strengthen their image, as Diesel which runs an art gallery in Japan as well as a series of art-related and sponsoring initiatives in European countries (Comunian, 2008, 2009; Dell’Era, 2010). With such projects as Diesel Art Gallery (Diesel, 2019), the company presented (and presents) itself as a supporter of the works of contemporary artists outside the institutional spaces of museums and art galleries. This confirms its target consumer, the young, educated, assertive, and rebellious adult. In the case of mass markets also, some brands use art-related strategies. One could mention, for example, the brand H&M which carried out a 2014 limited edition bag in collaboration with artist Jeff Koons, thus adopting a behavior typical of luxury fashion houses such as Louis Vuitton or Hermès (hm.com, 2019). Needless to say, that luxury retailers start to get interested in art-related strategy. In France, for example, the major Parisian department stores give increasing attention to art, whenever planning an experience of luxury superior to the consumers’ expectations, as in the case of Le Bon Marché which exhibits private collections in its retail commercial spaces. Another example would be the major fashion brand and department store Les Galeries Lafayette, Paris. In addition to exhibiting works of art in the gallery inside the store on Boulevard Haussmann, Les Galeries Lafayette open a foundation for artistic creation inaugurated in Paris on March 10, 2018 (La Fayette, 2019). Besides, the Fondation Cartier and Fondation Louis Vuitton Pour l’Art Contemporain (formerly known as Fondation d’entreprise Louis Vuitton pour la création) have contributed to the rise of these forms of support of the arts in fashionoperating companies, with such other well-known examples as the Fondazione Ermenegildo Zegna or Fondazione Trussardi or the Gucci Foundation. All of these companies, however, have not yet reached the level of art-related strategy of companies like Chanel with its itinerant art projects and the myth of its creator, Ms. Coco Chanel (Dion & Arnould, 2011; Kapferer, 2012). Zaha Hadid’s mobile art pavilion is now permanently located in Institut du Monde Arabe, in Paris, thus combining architecture, fashion luxury, and art. Another brand that has achieved a high level of Art and Business relationship is Hermès which uses art as a sophisticated strategy to enter such new markets as China (Kapferer, 2012). Hermès collaboration with Japanese photographer Hiroshi Sugimoto resulted in

2.2 Art and Business: Some Examples

17

the collection called “Colors of Shadow” which he termed “wearable art photography” (The scarves, launched in June 2012, € 7000 a piece). Other earlier collaborations had teamed Hermès with Josef Albers and Daniel Buren (Hermès, 2014a, 2014b, 2014c). A part devoted to examples of Art and Business collaboration should also include Prada and Louis Vuitton which are possibly the two fashion companies belonging to the sector of luxury that seem to have reached a very high level of art strategy. As stated by Massimiliano Gioni - curator of the Trussardi Foundation and director of the New Museum in New York City - Prada is one of the most active companies in the field of contemporary art (Pappalardo, 2014). Artists like Francesco Vezzoli would probably not being internationally renowned without the support of the Prada Foundation that acted as a real institution for the support of art (Pappalardo, 2014; Masè & Silchenko, 2017). The Prada Foundation was inaugurated in 1993 and is active in the promotion of contemporary art. Since May 2015, the Foundation, chaired by Miuccia Prada and her partner and business associate Patrizio Bertelli, has opened a new exhibition area in Milan designed by architect Rem Koolhaas (Fondazione Prada, 2019; Masè & Silchenko, 2017; Ryan, 2007). As creative director, Miuccia Prada has become an icon in the artistic environment, and the Prada brand has also become the subject of critical analysis by visual artist duo Michael Elmgreen and Ingar Dragset who designed a remarkable installation in Texas called Prada Marfa in 2005.1 This site-specific art project is a copy of a Prada boutique installed in the desert of Texas, that meticulously displays goods (shoes and bags) from the Prada fall 2005 collection. The artistic interest of such a project first lies in the design team choice of a vast desert location,2 since the shop sits in the middle of nowhere. It is a land art apparatus displacing the installation away from any museum to a marginal desert location as well as an ideological statement aimed at displacing luxury in the midst of emptiness. The main luxury players, Chanel, Hermès, and Prada, appear to have adhered to the strategy focus on arts (Weidemann & Heinings, 2013). The interesting thing is that they manage at the same time different points of contact with the arts, such as sponsorship or philanthropic activities, collaborations with artists for the design of collections and advertising, corporate collections or foundations (Masè & Cedrola, 2017). The massive activities of luxury brands in the art can be explained by the changes that affected the luxury sector since the 1980s onwards. Since then the major luxury brands have found themselves increasingly in the same situation as financial or oil firms which we already described. Behind key luxury brands there are in fact financial conglomerates with major financial powers, and growing issues of 1

Official book available on: http://shop.ballroommarfa.org/products/james-evans-prada-marfa, accessed on July 12, 2014. 2 Design Team: Elmgreen & Dragset: Michael Elmgreen, Ingar Dragset, Joerg Boettger; Rael San Fratello Architects: Ronald Rael, Virginia San Fratello on: http://www.rael-sanfratello.com/?p¼160, accessed on May 29, 2020.

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Corporate Social Responsibility and image, which cannot ignore increasingly wellinformed consumers (Fabris, 2009; Fabris & Minestroni, 2010). These companies tend to implement a strategy based on art, managing the different Art and Business points of contact in a synergistically manner. Moreover, these companies already belong to the sphere of the visual arts and this is the feature that makes luxury business, and in particular those in the fashion sector, exceptionally suited to the prospect of a strategy based on art. These are the main reasons why six luxury brands have been chosen as a focus for the case studies that will enrich every chapter composing the Part II of this book, to show a practical application of the research strands identified via the systematic analysis of the literature in Art and Business.

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Lindenberg, M., & Oosterlink, K. (2011). Art collections as a strategy tool: A typology based on the Belgian financial sector. International Journal of Arts Management, 13(3), 4–19. Martorella, R. (1996). Arts and business: An international perspective on sponsorship (1st ed.). Westport, CT: Greenwood Publishing Group. Masè, S., & Cedrola, E. (2017). Louis Vuitton’s art-based strategy to communicate exclusivity and prestige. In B. Jin & E. Cedrola (Eds.), Fashion branding and communication. Palgrave studies in practice: Global fashion brand management. New York: Palgrave Pivot. https://doi.org/10. 1057/978-1-137-52343-3_6 Masè S., Silchenko K. (2017). The Prada Trend: Brand Building at the Intersection of Design, Art, Technology, and Retail Experience. In: Jin B., Cedrola E. (eds) Fashion Branding and Communication. Palgrave Studies in Practice: Global Fashion Brand Management. Palgrave Pivot, New York. https://doi.org/10.1057/978-1-137-52343-3_5 Mitchell, W. J. T. (1994). Picture theory. Chicago: The University of Chicago Press. Mizroeff, N. (1999). An introduction to visual culture. New York: Psychology Press. Mizroeff, N. (2002). The visual culture reader. London: Psychology Press. Pappalardo, D. (2014). Gioni: Ecco la mia nuova Biennale. Accessed July 26, 2019, from www. repubblica.it/cultura/2014/11/30/news/gioni_ecco_la_mia_nuova_biennale-101811389 Riot, E., Chamaret, E., & Rigaud, E. (2013). Murakami on the bag: Louis Vuitton’s decommoditization strategy, International Journal of Retail & Distribution Management. Vol., 41(11/12), 919–939. https://doi.org/10.1108/IJRDM-01-2013-0010 Ryan, N. (2007). Prada and the art of patronage. Fashion Theory – Journal of Dress Body and Culture, 11(1), 7–24. https://doi.org/10.2752/136270407779934588 Sacco, P. (2012). Le industrie culturali e creative e l’Italia: una potenzialità inespressa su cui scommettere, Il Sole 24 ore. Accessed March 12, 2013, from https://st.ilsole24ore.com/ pdf2010/SoleOnLine5/_Oggetti_Correlati/Documenti/Cultura/2012/11/industrie-culturali-crea tive_sole24.pdf?uuid¼be3d5680-2f01-11e2-96ff-80a6c358c4b6 Schmitt, B., & Simonson, A. (1997). Marketing aesthetics: The strategic Management of Brands, identity, and image. New York: The Free Press. Schroeder, J. E. (2002). Visual consumption. New York: Psychology Press. Schroeder, J. E. (2005). The artist and the brand. European Journal of Marketing, 39(11/12), 1291–1305. https://doi.org/10.1108/03090560510623262 Scrivener, S. A. R., & Zheng, S. (2012). Projective artistic design making and thinking: The Artification of design research. Contemporary Aesthetics, Special Volume, no.4. https://www. contempaesthetics.org/newvolume/pages/article.php?articleID¼638 Shapiro, R. (2004). Qu’est-ce que l’artification ? XVIIéme Congres de l’Association internationationale de sociologie de langue française.’ L’individu social ‘, Tours, juillet 2004, May 2004, France. Accessed February 26, 2015, from https://halshs.archives-ouvertes.fr/halshs00010486v2 Shiner, L. (2012). Artification, Fine Art, and the Myth of ‘The Artist. Contemporary Aesthetics, Special Volume, no.4 http://hdl.handle.net/2027/spo.7523862.spec.404 Sontag, S. (2004). On photography. Trans. Ettore Capriolo. Sulla fotografia. Torino: Einaudi. Throsby, D. (2008). The concentric circles model of the cultural industries. Cultural Trends, 17(3), 147–164. https://doi.org/10.1080/09548960802361951 Unesco. (2014). Dichiarazione Di Firenze. Accessed June 15, 2020, from http://www.unesco.org/ new/fileadmin/MULTIMEDIA/HQ/CLT/pdf/FINAL_Florence_Declaration_1December_IT. pdf Weidemann, K. P., & Hennings, N. (2013). Luxury marketing a challenge for theory and practice. Springer Gabler: Wiesbaden. Wu, C.-T. (2003). Privatising culture: Corporate art intervention since the 1980s (2nd ed.). London: Verso. Yoon, H., & Shin, H. D. (2014). Determinants of the number of artworks in corporate art collections. International Journal of Arts Management, 16(2), 19–28. https://www.jstor.org/ stable/i24586097

Chapter 3

Systematic Literature Review in the Field of Art and Business

Abstract As a burgeoning area of research, Arts and Business still lacks clearly defined boundaries, thus requiring the largest possible contribution from previously validated research. So as not to neglect any important contributions, the review of the relevant literature which follows focuses mainly on research conducted in the area of management. In order to assure that literature review was as complete as possible, we adopted a method called systematic literature review. After an overview of this methodology, its application will be deeply described. A description of the results obtained will follow, together with the main literature strands highlighted in the field of Art and Business.

3.1

Methodological Foundations for a Systematic Literature Review

The first area of study in which the evidence-based inquiry experienced rapid development was medicine (Briner, Denyer, & Rousseau, 2009; Briner & Walshe, 2014; Kepes, Bennett, & Mcdaniel, 2014; Tranfield, Denyer, & Smart, 2003), and indeed the parameters and conditions necessary in order to carry out a systematic literature review were established on the basis of the medical model. Some authors have transferred such parameters and conditions to the field of management, outlining the steps required to realize a comprehensive literature review (Tranfield et al., 2003). In order to carry out a systematic literature review in the field of Art and Business, this work followed the steps indicated by the aforementioned authors, while nevertheless including a step of its own. A systematic literature review, which will be illustrated in detail, requires that the research be conducted in two phases: an initial comprehensive phase followed by an integration phase. In the research under review, an additional phase of analysis has

This chapter is revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016. © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_3

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been added. Twenty-eight journals from 1987 to 2018 were examined. They were identified as fundamental to the present area of study and interest (Rentschler & Kirchner, 2012; Rentschler & Shilbury, 2008). The starting date of the research coincides with the year in which the management of the arts received academic recognition (Rentschler & Shilbury, 2008). Articles were reviewed and then subjected to an operation of “skimming” according to the criteria defined by a research panel. This first phase of research led to the selection of 53 items, which were analyzed in depth and whose keywords were used for the second stage of research, which allowed the identification of 69 other items. At the end of the literature review, 122 articles were collected and deemed valid for the purposes of this research. The research was then further conducted at a greater level of depth. A benchmark operation was carried out between the 122 articles totally collected, thereby allowing highlighting points of divergence and convergence between the various articles. This comparative work has revealed six research strands attributable to Art and Business as an area of study: 1. 2. 3. 4. 5. 6.

Art and Business: a relational model. Art and Corporate Social Responsibility. Art and Communication. Art and Cross-Cultural Business. Art and Business Collections. Art and Consumer Perception.

Each subcategory of the literature under examination is composed of a set of articles bound together by a common theme. This chapter is devoted to an introduction to the systematic literature review methodology, as well as to the integration of this methodology within the context of management. This will be immediately followed by a description of the steps that have led to the application of this methodology to the present research. The results of this deep analysis will be instrumental to the delineation of the scope of a study of Art and Business and its practical application in management. Identifying the different subcategories of the relevant literature will be helpful in the historical analysis of the relationship between Art and Business and in understanding the different modalities through which this relationship occurs. The systematic literature review technique constitutes one of the basic steps in the evidence-based approach. Evidence-based research has its roots in the early 1980s when the UK government called for the best practices to be used in shaping the development of effective and efficient public policies (Tranfield et al., 2003). The evidence-based inquiry is essentially an extension of a scientific movement in which practical evidence becomes the focal point for the implementation of decision-making processes (Davies, Nutley, & Smith, 2000; Nutley, 2003; Nutley, Davies, & Walter, 2002). Today, practices peculiar to the evidence-based approach have spread to many other areas including: conservation, criminology, education, government and public policies, librarianship, medicine, social work, software

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engineering, sports, and last but not least, management (evidence-based management; hereafter EBMgt) (Pfeffer & Sutton, 2015). In keeping with the evidence-based movement, EBMgt asserts that any management decision should be made as a result of a best practices analysis and the examination of previous studies related to a given topic (Briner & Walshe, 2014; Dietz et al., 2014). The approach in question is based on five basic principles that make up the EBMgt process (Barends, Rousseau, & Briner, 2014): – – – –

Development of the research question (asking) Literature research (acquiring) Critical analysis of the ‘evidence’ (appraising) Research integration with information stemming from alternative sources and the planning and implementation of evidence (applying) – Application of evidence of the intervention’s outcomes (assessing)

The phase of acquiring is fundamental for EBMgt, asking for a well-defined and replicable literature review. Reviews in management usually tend to be deconstructed and to not follow a replicable approach, and this fuel the accusation of being unscientific (Tranfield et al., 2003). Systematic reviews thus differ from traditional reviews in that they use a replicable, scientific, and transparent process, to be performed through an extensive literature research based on the analysis of published and unpublished studies. The common imperative that guides the development of systematic literature reviews is the definition of a precise methodology to be established and declared prior to the entire development of the research. Specifically, the most important decisions that must be made as part of the review process are related to the choice of either retaining or dismissing certain research attempts or certain papers encountered during the investigation. Stating the selection criteria guiding the choice of what research can be included or not in the reviews is therefore antecedent to the screening itself. This should ensure that systematic literature reviews enjoy a greater level of objectivity than traditional reviews and facilitate the inclusion of all relevant and available research concerning a particular topic. Basically, the fundamental difference between traditional and systematic literature reviews is that the systematic ones are, or at least aspire to be, perfectly replicable by other researchers. This trait should be the cornerstone of objectivity for this type of review. The decision that underlies the choice of a systematic literature review is to guarantee a scientific basis that is both rigorous and relevant for practice as a key feature of an evidence-based approach. Tranfield et al. (2003) present a methodology of systematic literature reviews based on the one used in the medical field; they have therefore transposed the individual steps of systematic literature reviews from the medical area into management.

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The systematic literature review for management research presents three different stages, each one composed of several phases, as listed below (Tranfield, Daniel, and Smart, 2003: 214): – Stage I: Planning the review Identification of the need for a review Preparation of a proposal for a review Development of the review protocol – Stage II: Conducting the review Identification of the research Selection of the studies Quality assessment of the study Data extraction and progressive monitoring of the research Data synthesis – Stage III: Report and diffusion Report and recommendations Introduce evidence into practice Stage I—Planning the review—includes all the operations prior to the work of systematic literature review able to ensure the completeness and the methodological rigor that such research should demonstrate. This initial stage of the systematic review must be continuously updated and reconsidered even when revision is ongoing. A systematic literature review requires the formation of a panel that includes experts in theoretical and methodological fields who will make joint decisions about the limits of the study and the inclusion or exclusion of the items found during the research. Authors also point out the importance of considering cross-disciplinary perspectives and alternative means of analyzing the research topic (Tranfield et al., 2003). The proposal for a systematic literature review made by the panel of experts must be declared through the draft of the revision protocol that helps to protect the objectivity of the work and its orientation to the research target. Stage II—Conducting the review—defines the heart of the literature review process and includes the work of data extraction. Regarding the bibliographic research, two complementary approaches can be identified (Goodman, Gary, & Wood, 2014): 1. the “snowball” method 2. the “building blocks” method. By choosing to use the first method, the researcher begins her analysis from an article considered particularly important for the final goal of the research. She then proceeds to analyze the literature indicated in the article while pursuing, either subsequent to this analysis or in tandem with it, the search for new papers containing quotations related to the initial article. The second method, called “building blocks,” proceeds instead with the interrogation of the database through a combination of keywords and connectors. Present

3.2 Stage I: Planning the Review

25

research focus on this second approach toward literature analysis because, when used appropriately, it seems to be the most complete method (Goodman et al., 2014). Specifying and conducting an evaluation of the quality of the selected articles is one of the main difficulties encountered during a systematic literature review. The decision to either include or exclude the articles within the literature review is generally driven by the congruence or fit between this material and the research question guiding the review process. The summary of the research, with which the second phase of the systematic literature review concludes, is the integration process for the collected information. Narrative synthesis is the easiest and best-known way to summarize collected data and this is particularly the case in the field of management where it is used in place of statistical synthesis methods better suited to quantitative analysis (Tranfield et al., 2003). Finally, Stage III, or the Report and Diffusion stage, mainly refers to either the managerial implications arising from the literature analysis, or all of those practices that can be applied to the field. It is important to not forget the pragmatic conduct behind the evidence-based management, which the systematic literature review refers to. Having offered a brief theory-centered introduction explaining the basic conditions and parameters that regiment a systematic literature review, the real review of the literature work begins.

3.2

Stage I: Planning the Review

The research work starts with planning the review, which corresponds to Stage I according to the steps listed by Tranfield et al. (2003). Phase 0 of this Stage involves the identification of the need for an audit, followed by the preparation of a review proposal (activity corresponding to Phase 1 of the aforementioned Stage I). First and foremost, the fundamental criterion for the success of a systematic literature review is the formation of the research panel composed of a group of experts. The panel for the present work consists in an expert in the field of management, an expert in the field of visual arts and an expert in the field of brand management. The team’s various areas of expertise ensure the interdisciplinary called for by Tranfield et al. (2003) in order to guarantee a greater range of views during the audit of articles and information material. In order to address the first two important phases prior to the review work, the panel referred mainly to the observation of reality and historical accounts from the past. Indeed, the initial consideration involved the existence of numerous relationships that exist between the words of Art and Business. Thus, using the two lenses of management and visual arts, the panel formulated a set of research questions that acted as a guide for the whole process of research and experimentation. Moreover, based on this set of questions the underlying need for a literature audit was identified and an accompanying review proposal was drafted.

26

3 Systematic Literature Review in the Field of Art and Business

Research questions in the field of management need to be specified, whether it is as replicas of an existing study, as a future development of an available study, or as a new study designed to fill a gap in the literature. Over the years research has improved techniques and methods for the determination of the research question (Roberts & Bradley, 1999). Most of them are expressed by breaking down the original question into secondary questions of increasing specificity (Briner & Walshe, 2014). In this case, the main research question developed by the panel was expressed in the following manner: Q: Do firms belonging to different sectors connect to art strategically?

In keeping, once again, with the indications laid out of by Briner and Walshe (2014), the research question was further analyzed, discussed, divided, and expanded upon by the panel in order to identify the real need underlying the necessity for a review, followed by the preparation of a proposal and the subsequent development of the research protocol. These transactions correspond to Phase 2 of Stage I of the planning review process described above. The following research questions arise from this additional planning phase: Q1: Do firms belonging to different sectors connect to art strategically? Q1.1: Companies strategically connected to the arts do belong to which industry? Q1.2: How can we define the arts?

Question Q1.1 stems from the assumption that strategical connections with the arts have been observed in companies belonging to very different sectors. We decided not to focus the audit only on one sector not to limit the literature analysis, thereby going against one of the basic constructs of the systematic literature review, namely, the comprehensiveness of the audit. Moreover, focusing only on a particular sector would undermine the objectivity of the review work since the choice would have been driven almost entirely by the subjective interests of the researchers. The objectivity of the research is, instead, one of the basic principles of a systematic literature review. Question Q1.2 was born from the observation of the nonexistence of a monolithic definition for arts. Whereas an enterprise is commonly defined as “[. . .] an organization of people and goods directed toward a productive purpose” (Sciarelli, 2011: 17), it seems difficult to find a basic definition for arts. Arts can be defined as: [. . .] the ability to act and produce, based on a particular set of rules, cognitive experiences and techniques, and therefore also the set of rules and procedures required to carry out a human activity in view of particular results [. . .] (our translation from Treccani, 2015).

This definition seems to be too large to function as a guideline for a systematic literature review. Furthermore, comparisons within the panel have revealed additional complications related to arts and its definition. At a very general level of specification, it is possible to distinguish between visual arts, such as painting and photography, and non-visual arts, such as music or literature.

3.2 Stage I: Planning the Review

27

Table 3.1 Checklist for the Research Strategy 1 2 3 4 5 6 7 8

Define guide words Determine synonyms of the guide words Identify previous review studies and determine of the limits to conduct the research I Develop the first research - research I Identify a controlled vocabulary (keywords) used for indexing database Make a logical combination of all the research terms Perform an ‘exploded’ or a ‘focused’ research through the use of keywords Develop the second research—Research II

Research within the limits

Offshore research

Source: Table’s form elaborated upon by the present author from Cochrane EPOC (2017)

Some products, as the ones belonging to the fashion industry, however, can be considered as belonging to the visual arts and this prevents an adequate distinction between Art and Business in the ongoing research, by impeding its correct setup. For the clarity of the research, the panel chose to focus only on visual arts for the development of the systematic literature review, thus excluding research papers dedicated to literature and music (Areni, 2003; Gorn, 1982; Jain & Bagdare, 2011; Sherry & Schouten, 2002; Stern, 1991). The next section will therefore be devoted to drafting the research protocol adapted to the needs of the present study. Research protocol is the final phase of Stage I of the systematic literature review as illustrated by Tranfield et al. (2003). This was decided upon by a panel of interdisciplinary experts as a guideline for establishing the parameters for and implementing a systematic literature review in the field of Art and Business. In order to draft the protocol, our research used the Cochrane (EPOC) checklist and adapted it to our specific needs. The result of this first part of the work is illustrated in the following table (Table 3.1). An important differentiation we inserted properly for this research is that the steps listed in the checklist were divided into two subsets called “research within the limits” and “offshore research.” As previously mentioned, the systematic literature review protocol provides two rounds of research, referred to as Research I and Research II. The first research operation will therefore be carried out within a specific selection of studies, which will be explained in the following paragraphs, called “research within the limits.” The second research operation will instead be performed directly on the database using the keywords identified during the first search operation (Research I) as the only filter. This is the reason why Research II was also called “offshore research.” The research will therefore proceed with the exploration of each point indicated by research protocol. Step 1 of the research protocol provides the identification of words that will serve as a guide for Research I. For the definition of these “guide words,” the present study

28

3 Systematic Literature Review in the Field of Art and Business

referred to the research question from which the entire work has sprung. Then it followed in kind with the subsequent breakdown of this question: Q1: Do enterprises belonging to different sectors connect to art strategically? Q1.1: Companies strategically connected to the arts do belong to which industry? Q1.2: How can we define the arts?

The two “guide words” we extrapolated from the research questions are “Enterprise” and “Arts.” They concur with the “guide words” the panel decided to use for the first part of review, called Research I or “research within the limits.” Research will be carried out using material written mainly in English, lingua franca of the scientific field. Consequently, the two “guide words” will become “Enterprise” and “Arts.” The word “Enterprise” was probably too restrictive in this first phase of research, so the panel decided to convert this noun to “Business,” thus giving a broader approach to the first phase of exploration. The “guide words” used for the Research I “within the limits” are therefore Arts and Business, and the synonyms concerned the second word, Business, as Enterprise, Company, Firm, and Organization. Research I delineates an initial screening phase in which the greatest possible number of articles about a given topic is collected and analyzed. Keywords considered interesting for the ongoing research are extracted from these same articles and subsequently used for Research II screening. In this analysis, a small, but important, modification to Research I was made. The panel therefore decided to use further guidelines for Research I, indicated by some audit works carried out in the field of arts management. Moreover, this area of research is not unlike research dealt with in the present study, that is, Art and Business. Once the limits of Research I have been defined, the actual screening activity of the articles will take place by means of the guide words “Arts” and “Business.” From the analysis of the abstracts and the keywords extracted from the collected items, the research panel established the list of keywords that will be subsequently used in Research II, also called “Offshore research.” At this point, it is necessary to briefly introduce the three articles in the Arts Management field that have been used to better understand the subsequent phases of this study. The work initially used in establishing the aims and limits of research, was an article by Ruth Rentschler and David Shilbury entitled “Academic Assessment of Arts Management Journals: A Multidimensional Rating Survey,” published in the International Journal of Arts Management in 2008. The two authors proposed a rating of Art Management magazines, in order to provide this relatively young discipline with a much needed, scientifically recognized academic support, thereby ensuring the quality of publications (Rentschler & Shilbury, 2008). They tested the criteria of prestige, contribution to the practice, contribution to theory, and contribution to teaching, outlined by Polonsky, Garma, and Mittelstaedt (2006), analyzing them through in-depth interviews aimed at some recognized experts in the field of Arts Management.

3.2 Stage I: Planning the Review

29

The work carried out by these two researchers allowed the present research to precisely pinpoint academic journals that can be considered as fundamental to the development and scientific recognition of this area of study (Rentschler & Shilbury, 2008). Starting from this first research, Ruth Rentschler carried out further analysis of the major journals in Arts management research, this time with Theresa Kirchner (Rentschler & Kirchner, 2012). In addition, the two researchers identified eight journals exclusively dedicated to the research area of arts management and that might be considered fundamental to the industry. During the course of their work, the two authors also put forth a definition of the term “Arts Management” that includes a broad research perspective with respect to the extent and type of company and organization analyzed (be they profit or non-forprofit), as well as the activities that can be analyzed, such as the fine arts, media, heritage, and other cultural and creative industries (Rentschler & Kirchner, 2012). Implicit in their definition of “arts management” is an understanding of how this relatively new area of study is deeply interdisciplinary, thereby allowing for the analysis of the phenomena in question via disparate, but at times converging, points of view, such as management, marketing, and economics, with a particular focus on public policies in favor of art, finance, and cultural studies. The theory behind arts management studies therefore draws from a pool of different theoretical approaches such as business, management, aesthetics, sociology, social psychology, economics, philosophy, and legal studies (Rentschler & Kirchner, 2012). The journals listed by the works described above were used as a starting point for the analysis of Daragh O’Reilly. The scholar presents a visual map of the existing literature in the field of arts marketing (O’Reilly, 2011), which can be considered a subset of the more general discipline of arts management. Maps are generated through the analysis of the eight journals indicated above in the work by Ruth Rentschler and Theresa Kirchner in their article, and through the use of a series of keywords and combinations of keywords related to the arts, culture, marketing, and consumption (O’Reilly, 2011).1 O’Reilly also lists in this work some of the content that may be related to Art and Business, such as the activities of product placement, sponsorship, and philanthropy. By using the three articles described above, all of which were gleaned from research in arts management, the research panel was able to identify the limits within which the collection of interesting articles in question can be deemed germane to the present analysis. These limits can be primarily identified using both the list of

1

It should be noted, that Daragh O’Reilly’s study refers to the article by Rentschler and Kirchner entitled “Who is publishing and citing arts management/marketing articles? Examining the external impact of arts management journals,” published as act of the ninth International Colloquium on Arts, Heritage, Non Profit and Social Marketing conference, held in King’s College of London in September 2010. For the present study, instead, article of Rentschler and Kirchner published in 2012 on Arts Marketing: an international journal has been used. The list of the major journals in the field of arts management has not changed in the two different versions of the research.

30

3 Systematic Literature Review in the Field of Art and Business

journals considered fundamental to the field of arts management, and the criteria highlighted by Ruth Rentschler and David Shilbury (Rentschler & Shilbury, 2008), and Ruth Rentshler and Teresa Kirchner (Rentschler & Kirchner, 2012) in the relevant articles mentioned above. In contrast, the article by Daragh O’Reilly (2011), allowed obtaining other “guide words” to be added to the ones previously mentioned by the research panel (Art and Business). This imposed yet a further constraint on the limits for this first phase of the review, Research I or “research within the limits,” which will come alive during Stage II of the research described below.

3.3

Stage II: Conducting the Review

Stage II of a systematic literature review, as indicated by Tranfield, Denyer, and Smart (2003: 214), includes a series of stages that were listed at the beginning of this chapter: Step 3—Identification of the research. Step 4—Selection of the studies. Step 5—Quality assessment of the study. Step 6—Data extraction and progressive monitoring of the research. Step 7—Data synthesis. The protocol outlined above provides two research operations called Research I and Research II that make up the operations carried out during a general review. For this reason, steps 3 to 6 of the systematic literature review reported above will be repeated for each of the two research operations. Only Phase 7, dedicated to the synthesis of the collected data, will be shared by the two operations. In what follows the first phase of research also called “research within the limits” will therefore further elaborate. Table (Table 3.2) indicates the steps followed for Research I. Screening activity for Research I “research within the limits,” took place through the observation of the abstracts of the 28 magazines mentioned above, and over a period of time ranging from 1987 to 2018. The year 1987 was chosen as the base year as the year in which the arts management field of study gained academic recognition (Rentschler & Kirchner, 2012). Table 3.2 Phases of Research I “Research within the Limits” 1 2 3 4

Define guide words Determine synonyms of the guide words Identify previous review studies and determine the limits within which conduct research I Develop the first research - research I

Research within the limits

Source: Table’s form elaborated upon by the present author from Cochrane EPOC (2017)

3.3 Stage II: Conducting the Review

31

The amount of data explored allowed for a better understanding of the phenomenon observed during its development. And indeed, this is why the guidelines were often re-discussed with the panel and the flexibility provided by the process of systematic literature review, as applied to management (EBMgt), has proved invaluable to this phase of research. For example, the first questions raised during Research I concerned the choice of studying either the Art and Business phenomenon from the vantage point of the marketing and management of artistic organizations (museums, art galleries, and creative and cultural industries), or analyzing those firms whose main activity is not directly attributable to the arts (O’Reilly, 2011). A second question focused instead on the decision to focus our attention on the analysis of the private or public support for the arts. The main question that emerged was indeed related to the collection of articles that addressed governmental measures to promote and support art activities or that were fully devoted to the study of the private market. This would mean developing an analysis of all of the activities in support of art promoted by private entities, such as individuals, private businesses, and nongovernmental institutions. The decision eventually agreed upon was to focus the research on the use made by private companies outside of the field of cultural industries (museums, art galleries). Indeed, the research panel felt that the analysis of the management and marketing of artistic enterprises was already widely discussed in the literature. Concerning activities related to support for the arts, this work focuses on the means of support promoted by private enterprises, taking into account the articles devoted to public policies if and only if such policies were created to facilitate private support for the arts, as in the case of the French law in favor of patronage (Loi n 2003-709 du 1 août 2003 relative au mécénat, aux associations et aux fondations) or the recent Italian law called Art Bonus (Decreto-Legge 31 maggio 2014, n. 83). The following table shows the result of Research I “research within the limits” (Table 3.3). As detailed above, the narrative summary of the 53 items collected during Research I “within the limits” will also be carried out using the articles collected in Research II “offshore.” The goal of Research II is to collect as much research as possible on the issue under consideration. Using the keywords uncovered during Research I, audit activities were pursued within databases chosen by the panel. For the sake of convenience, the part of the protocol concerning Research II “research offshore” is shown in the table below (Table 3.4). Point 5 of the protocol requires the formation of a set of keywords that allows to precisely defining the articles that will be filtered, and further accepted, during Research II. For this research, the keyword cloud has been derived from words resulting from Research I, indicated in the 53 articles selected during the “research within the limits.” It is appropriate to specify that in the case of articles not provided with a list of keywords; these words have been deduced from the title and the abstract of the article. This operation was carried so as not to exclude any of the 53 items collected during this phase of defining keywords, and so as to take into account any article collected.

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3 Systematic Literature Review in the Field of Art and Business

Table 3.3 Research I “Research Within The Limits” Journal Title and Research Period International Journal of Arts Management (1998–2017)

Articles 13

Journal of Arts Management, Law and Society (1987–2017) Formerly journal of arts, management and law

12

Journal of Cultural Economics (1987–2017)

8

International Journal of Cultural Policy (1994–2017)

6

Museum Management and Curatorship (1987–2017) Formerly international journal of museum management and curatorship Journal of Advertising (1987–2017)

5

2

Journal of Advertising Research 2 (1987–2017) European Journal of Marketing 2 (1987–2018) Poetics: Journal of Empirical Research 1 on Culture, the Media and the Arts (1987–2017) Asia Pacific Journal of Arts and Cul1 tural Management (2003–2017) Journal of Marketing Research 1 (1987–2018) Academy of Management Journal (1987–2018); Academy of Management Review (1987–2018); Administrative Science Quarterly (1999–2017); California Management Review (1987–2017); International Journal of Research in Marketing (1987–2017); Journal of the Academy of

References Killacky (1998); Mulcahy (1999); Sauvanet (1999); Fishel (2002); McNicholas (2004); Van der Burg, Dolfsma, and Wilderom (2004); Colbert, D’astous, and Parmentier (2005b); Lagier and Godey (2007); Kottasz, Bennett, Savani, Mousley, and Ali-Choudhury (2007); Preece (2010); Lindenberg and Oosterlinck (2011); Yoon and Shin (2014); Carù, Ostillio, and Leone (2017) Bloch (1989); Jeffri (1989); Roschwalb (1990); Kressner Cobb (1996); Wyszomirski (1996); Roodhouse (1997); Chong (2000); Kressner Cobb (2002); Kirchberg (2004); Behnke (2007); Comunian (2009); Lewandowska (2015) Cwi and Strausbaugh (1988); Turgeon and Colbert (1992); Vanhaverbeke (1992); Kirchberg (1995); Leclair and Gordon (2000); O’Hagan and Harvey (2000); Ulibarri (2000); Frank and Geppert (2004); Zolberg (2000); Colbert, D’astous, and Parmentier (2005a); Morel (2005); McIsaac (2007); Stenstrom (2008); Kawashima (2012) Bucher (1989); Tweedy (1991); Zorn and Koidl (1991); Scaltsa (1992); Morbey (2006) Ruth and Simonin (2003); Borghini, Visconti, Anderson, and Sherry Jr. (2010) Quester and Thompson (2001); Schwaiger, Sarstedt, and Taylor (2010) Schroeder (2005); Peluso, Pino, Amatulli, and Guido (2017) Alexander (1996)

Thompson (2005) Hagdtvedt and Patrick (2008a) 0

(continued)

3.3 Stage II: Conducting the Review

33

Table 3.3 (continued) Journal Title and Research Period

Articles

Marketing Science (1987–2018); Journal of Consumer Research (1987–2017); Journal of Management (1987–2017); Journal of Management Studies (1987–2017); Journal of Marketing (2000–2017); Journal of Organizational Behavior (1987–2018); Journal of Service Research in Marketing (1997–2018); Marketing Science (1987–2018); Media International Australia Incorporating Culture Creative Industries, and the Arts (1987–2018); Nonprofit and Voluntary Sector Quarterly (1987–2018); Organization Science (1990–2018); Organization Studies (1987–2018) Total A and B articles

References

53

Source: Table’s form elaborated upon by authors

Table 3.4 Phases for Research II: “Research Offshore” 5 6 7 8

Identify a controlled vocabulary (keywords) used for indexing database Make a logical combination of all the research terms Decide on whether to perform an “exploded” or a “focused” research through the use of keywords Develop the second research—Research II

Research offshore

Source: Table’s form elaborated upon by the present author from Cochrane EPOC (2017)

In order to facilitate the understanding of those keywords that turned out to be the most frequently used in the context of Art and Business studies, a tag cloud was created (Fig. 3.1) relative to Research I, thereby allowing one to immediately view the keywords most frequently used in the 53 articles analyzed. The next phase of Research II continued with the bibliographic control carried out on the search engines using the identified keywords as a filter. The term “search engine” refers to both systems that search information in the world wide web (for example, Google, Bing, and Yahoo), as well as interfaces that perform research within a specific database (ProQuest, EBSCO-host, Scopus) (Goodman et al., 2014). Although the general approach of the systematic literature review involves gathering as much information as possible, whether it be from magazine articles, conference proceedings, or articles still under review, for this analysis the research panel only collected and analyzed the articles published in academic journals. This choice was dictated by the fact that publications in academic journals are thought to represent authoritative knowledge by the relevant scientific community (Podsakoff, Mackenzie, Bachrach, & Podsakoff, 2008; Podsakoff, Mackenzie, Lee, & Podsakoff, 2003; Tahai & Meyer, 1999). Consequently, journal articles were searched using the keywords listed above on Ebsco-host, Springer Link, Scopus, and Google Scholar databases. The keywords that emerged from the literature analyzed during Research I were used in the second phase of the investigation to ensure the in-depth screening of the articles.

34

3 Systematic Literature Review in the Field of Art and Business

Fig. 3.1 Cloud of keywords more frequently founded in research I. Source: Table’s form elaborated upon by the present author

Articles obtained via this second phase of the research, labelled “offshore,” were finally 69, as listed in the table below (Table 3.5): Indeed, the chief aim of the research was to define the scope of the Art and Business domain vis-à-vis a reference topic squarely centered on how enterprises (except for cultural organizations such as museums and art galleries) use the art for their profit. In this regard, it is possible to provide the initial results of the research: “sponsorship” is the keyword that has enabled to generate the greatest number of results relative to present research interests, both during Research I “research within the limits” and during Research II “research offshore.” The lists of all articles that have been found and collected through the operation of systematic literature review in the field of Art and Business includes 53 articles resulting from Research I “research within the limits” and 69 articles resulting from Research II “research offshore,” for a total of 122 articles. The rest of the work is devoted to the narrative analysis of all of the articles collected, as well as the subsequent identification of the main research themes in the field of Art and Business.

3.3 Stage II: Conducting the Review

35

Table 3.5 Research II “Research Offshore” Journal Title and Research Period Journal of business research

Articles 12

Journal of product and Brand Management

5

Corporate communications: An international journal Journal of business ethics Journal of nonprofit and public sector marketing Journal of promotion management Journal of retailing

2 2 2 2 2

References Megehee and Spake (2012); An and Youn (2018); Alfakhri, Harness, Nicholson, and Harness (2018); Carlucci and Schiuma (2018); Chailan (2018); Chaney, Pulh, and Mencarelli (2017); Choi, Ko, and Kim (2018); Estes, Brotto, and Busacca (2018); Kim, Vaidyanathan, Chang, and Stoel (2018); Koronaki, Kyrousi, and Panigyrakis (2018); Naletelich and Paswan (2018); Strauß (2018) Baumgarth (2018); Hüttl-Maack (2018); Jelinek (2018); Kristal, Baumgarth, and Henseler (2018); Vukadin, Wongkitrungrueng, and Assarut (2018) Olkkonen and Tuominen (2006); Kottasz, Bennett, Savani, Mousley, and Ali-Choudhury (2008) File and Prince (1998); Moir and Taffler (2004) Brennan, Binney, and Brady (2012); Daellenbach, Thirkell, and Zander (2013) Sylvestre and Moutinho (2007); Dalakas (2009)

2 1

Dion and Arnould (2011); Joy, Wang, Chan, Sherry Jr, and Cui (2014) Carrillat, D’astous, and Colbert (2008); Mermiri (2010) Huettl and Gierl (2012); Lee, Chen, and Wang, (2015b) Durand, De Gouveia, and Berman (1996); Mcguigan and Gilmore (2002) Kapferer (2012); Kapferer (2014) Wang, Cruthirds, Axinn, and Guo (2013)

1 1 1 1

Nam and Shin (2015) Weinstein and Cook (2011) Alexander (2014) Tyrie and Ferguson (2013)

1 1

Herranz de la Casa, Manfredi, and CabezueloLorenzo (2015) Van Niekerk & Conradie, (2016)`

1 1 1

Pelzer (2006) Lewandowska (2016) Ryan (2007)

1 1

Cassullo (1988) Dell’era (2010)

Journal of sponsorship

2

Marketing letters

2

The European journal of cultural policy Business horizons Academy of marketing studies journal Actual problems of economics Advanced of management journal Anthropological forum Arts marketing: An international journal Catalan journal of communication and cultural studies Critical arts, south-north cultural and media studies Culture & Organization Economics and business review Fashion theory—Journal of dress body and culture Harvard business review Industry & Innovation

2

(continued)

36

3 Systematic Literature Review in the Field of Art and Business

Table 3.5 (continued) Journal Title and Research Period International journal of business communication International journal of nonprofit and voluntary sector marketing International journal of retail and distribution management Irish marketing review Journal of business and industrial marketing Journal of business strategy Journal of cleaner production Journal of consumer psychology Journal of current issues and research in advertising Journal of global fashion marketing La revue des sciences De Géstion Management of environmental quality: An international journal Management review Managing leisure Marketing intelligence and planning Organization Public relations quarterly Recherche et applications en marketing Social behavior and personality: An international journal Asian journal of quality The journal of American culture The MIT press Total art and business articles

Articles 1

References Hoeken and Ruikes (2005)

1

Daellenbach (2012)

1

Riot, Chamaret, and Rigaud (2013)

1 1

Ryan and Fahy (2003) Olkkonen and Tuominen (2008)

1 1 1 1

Comunian (2008) Zsolnai and Wilson (2018) Hagdtvedt and Patrick (2008b) Hetsroni and Tukachinsky (2005)

1

Kim, Ko, and Lee (2012)

1 1

Lehu (2011) Bulut and Bulut Yumrukaka (2009)

1 1 1

Reiss (1989) Finkel (2010) Thomas, Pervan, and Nuttall (2009)

1 1 1

Hjorth and Pelzer (2007) French (1991) Walliser (2003)

1

Lee, Kim, and Yu (2015a)

1 1 1

Moon and Kwak (2010) Robson (2015) Hewitt (2000) 69

Source: Table’s form elaborated upon by authors

3.4

Stage III: Report and Diffusion

Stage III of systematic literature review, also called Report and Diffusion, consists in the last two phases of the procedure presented by Tranfield et al. (2003): Report and recommendations, and Introduce evidence into practice. The articles initially collected through the operation of the systematic literature review numbered 122. Further operation of skimming was undertaken at this stage of the collection, which was performed according to the parameters and rules described

3.4 Stage III: Report and Diffusion

37

in the previous paragraphs. Each of the 122 articles was read and analyzed and, through content analysis made in consultation with the research panel, six literature strands were identified. Our main effort while article screening concerned the proper distinction relative to what can be considered private support for the arts. Art can be supported by private or public actors. The focus of this research is exclusively on private support for the arts where three different types of private actors can be found—namely, people who give physical individual donations, foundations, and enterprises. This analysis refers to those articles attributable solely to the relationship between Art and Private Enterprises. We separated the articles collected via content analysis, concentrating on the main results the Art and Business relationship is built for, as described in the article under analysis. The six subcategories that have been identified during the systematic literature review in the field of Art and Business are: 1. 2. 3. 4. 5. 6.

Art and Business: a relational model. Art and Corporate Social Responsibility. Art and Communication. Art and Cross-Cultural Business. Art and Business Collections. Art and Consumer Perception.

The following table (Table 3.6) shows each of the main topics in the six lines of research, the authors and the date of publication of the first and last item. The first literature subcategory, called “Art and Business: a relational model” is an introductory strand of the study in question. Moreover, authors inserted in this first set conceive the intersection between these two areas as a form of relational business. They do not affect the actual ways in which the relationship is realized, whether through sponsorship or philanthropy. The second subcategory, “Art and Corporate Social Responsibility” collects all the researches considering the arts a valuable tool for a Company to build an effective CSR strategy. The third strand of research, “Art and Communication,” is dedicated to advertising, and sponsorship activities applying or sustaining visual arts forms. Sponsorship resulted in the most widespread mode of interaction between the two sectors, and certainly the one that portends the most interesting developments, mainly with respect to its underline strategic implications. The subcategory “Art and Cross-Cultural Business” refers to the fact that the links between arts and enterprises were initially founded in English-speaking countries, mainly the USA and England, around the 1980s (Martorella, 1996; Wu, 2003; Zolberg, 2000). Apparently, the wave of privatization that affected the two countries under the leadership of Ronald Reagan and Margaret Thatcher also impacted the artistic and cultural sectors, before expanding into those states where support for the arts had always been the exclusive domain of the government, as in the case of France and Italy (Alexander, 2014).

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Table 3.6 Main lines of research in the area of art and and business Main Lines of Research in The Area of Art and Business Line of research 1 Art and business: A relational model (first and last items (1989–2018) published) Authors McNicholas (2004); Van der Burg et al. (2004); Schroeder (2005); 26 selected items Pelzer (2006); Hjorth and Pelzer (2007); Ryan (2007); Dell’Era (2010); Preece (2010); Dion and Arnould (2011); Weinstein and Cook (2011); Kapferer (2012, 2014); Riot et al. (2013); Joy et al. (2014); Lewandowska (2015, 2016); Baumgarth (2018); Carù et al. (2017); Strauß (2018); Carlucci and Schiuma (2018); Kim et al. (2018); Chaney et al. (2017); Chailan (2018); Kristal et al. (2018); Koronaki et al. (2018); Jelinek (2018). Line of research 2 Art and corporate social responsibility (first and last items (1989–2018) published) Authors Bloch (1989); Jeffri (1989); French (1991); Wyszomirski (1996); 16 selected items Alexander (1996); File and Prince (1998); Ulibarri (2000); Fishel (2002); Kressner Cobb (2002); Moir and Taffler (2004); Kirchberg (2004); Bulut and Bulut Yumrukaka (2009); Alexander (2014); Herranz de la Casa et al. (2015); Nam and Shin (2015); Zsolnai and Wilson (2018); Line of research 3 Art and communication (first and last items (2005–2018) published) Authors Roschwalb (1990); Turgeon and Colbert (1992); Hewitt (2000); Chong 33 selected items (2000); Leclair and Gordon (2000); O’Hagan and Harvey (2000); Mcguigan and Gilmore (2002); Walliser (2003); Ryan and Fahy (2003); Frank and Geppert (2004); Hetsroni and Tukachinsky (2005); Thompson (2005); Morbey (2006); Olkkonen and Tuominen (2006, 2008); Sylvestre and Moutinho (2007); Thomas et al. (2009); Schwaiger et al. (2010); Borghini et al. (2010); Moon and Kwak (2010); Mermiri (2010); Finkel (2010); Lehu (2011); Brennan et al. (2012); Daellenbach (2012); Daellenbach et al. (2013); Tyrie and Ferguson (2013); Robson (2015); Lee, Kim, and Yu (2015a); van Niekerk and Conradie (2016); Peluso et al. (2017); Estes et al. (2018); Hüttl-Maack (2018). Line of research 4 Art and cross-cultural business (first and last items (1996–2012) published) Authors Cwi and Strausbaugh (1988); Reiss (1989); Zolberg (2000); Bucher 19 selected items (1989); Tweedy (1991); Zorn and Koidl (1991); Scaltsa (1992); Kirchberg (1995); Durand et al. (1996); Kressner Cobb (1996); Killacky (1998); Sauvanet (1999); Mulcahy (1999); Morel (2005); McIsaac (2007); Stenstrom (2008); Comunian (2008, 2009); Kawashima (2012). Line of research 5 Art and business collections (first and last items (1998–2014) published) Authors Cassullo (1988); Roodhouse (1997), Hoeken and Ruikes (2005); 8 selected items Kottasz et al. (2007, 2008); Behnke (2007); Lindenberg and Oosterlinck (2011); Yoon and Shin (2014). (continued)

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Table 3.6 (continued) Main Lines of Research in The Area of Art and Business Line of research 6 Art and consumer perception (first and last items (2007–2018) published) Authors Vanhaverbeke (1992); Quester and Thompson (2001); Ruth and 20 selected items Simonin (2003); Colbert et al. (2005a, 2005b); Lagier and Godey (2007), Carrillat et al. (2008), Hagdtvedt and Patrick (2008a, 2008b); Dalakas (2009); Kim et al. (2012); Huettl and Gierl (2012); Megehee and Spake (2012); Wang et al. (2013); Lee, Chen, and Wang (2015b); Naletelich and Paswan (2018); Vukadin et al. (2018); Alfakhri et al. (2018); An and Youn (2018); Choi et al. (2018).

The fifth research strand or “Art and Corporate Collections” is dedicated to a long-time applied strategy that allowed a Company to sustain the arts by exploiting financial and image benefits resulting from the creation and management of a business collection. The sixth subcategory of the Art and Business literature, labeled “Art and Consumer Perception,” illustrates a series of articles devoted to the analysis of the observed reactions of consumers vis-à-vis the use of art for strategic business purposes. The second part of this book shows each of the main topics concerning the six lines of research. The narrative analysis of the contents is followed by a case study to describe a practical application of the research strand in business reality.

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Part II

A Detailed Analysis of the Main Lines of Research in Art and Business

Chapter 4

Art and Business a Relational Model

Abstract The authors who loosely define the Art and Business as a relational model conceives it as a business relationship in which donor and recipient are both actives beneficiaries. The economical sustain received by the arts is abundantly counterbalanced in terms of value creation for companies. Arts can in fact inflate stimulating innovations for enterprises regarding their organizational structure, identity, and brand value. A special attention has been given by authors to luxury companies, and brands, intensively collaborating with the arts to maintain a perception of exclusivity. The case study dedicated to luxury conglomerate LVMH will offer an actual example of the relations between Art and Business.

4.1

Art and Business: A Relational Model1

The interesting element that rendered all of the articles ascribed to this literature strand is the fact that the art world tends to be presented as an active element in the Art and Business relationship. With the consolidation of these relations, and with the adequate support of public policies and the target audience, arts and culture can no longer be identified as the weaker part in a relationship, willing to sacrifice the freedom of their production in exchange for economic business support. An important part of the art world, especially in some countries, would seem to represent a valuable asset for private companies: a high-quality audience usually able to spend considerable sums in order to benefit from products of a high level of quality. The table below (Table 4.1) shows the authors and articles belonging to this literature strand, together with the main arguments treated by them.

1 Sections 4.1, 4.1.1, and 4.1.2 are revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016.

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_4

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Table 4.1 First line of research: Art and Business A Relational Model Line of Research 1 (First and last items published) Authors 26 selected items

Main theoretical contributions

Art and Business: A Relational Model (1989–2018) Baumgarth (2018); Carù, Ostillio, and Leone (2017); Carlucci and Schiuma (2018); Chaney, et al. (2017); Chailan (2018); Dell’Era (2010); Dion and Arnould (2011); Hjorth and Pelzer (2007); Jelinek (2018); Joy, Wang, Chan, Sherry Jr, and Cui (2014); Kapferer (2012, 2014); Kim, Vaidyanathan, Chang, and Stoel (2018); Koronaki, Kyrousi, and Panigyrakis (2018); Kristal, Baumgarth, and Henseler (2018); Lewandowska (2015, 2016); McNicholas (2004); Pelzer (2006); Preece (2010); Riot, Chamaret, and Rigaud (2013); Ryan (2007); Schroeder (2005); Strauß (2018); Van der Burg, Dolfsma, and Wilderom (2004); Weinstein and Cook (2011). Authors partaking of this line of research focus to the fact that companies are investing in artistic and cultural activities to stimulate their organizational structure, or their brand strategies. At the same time, artists and art organization can be inspired by business actions and strategies. A special attention in recent years has been given by authors to luxury brands, looking for the recreation of an artificial exclusivity through the arts.

Source: Table’s form elaborated upon by the present author

A very complete model for the creation of the Art and Business relationship has been presented in 2004 by Bernadette McNicholas. The author points toward a relationship that is increasingly constrained and structured, in constant flux and able to play an increasingly strategic role in terms of innovation in business. Moreover, the relationship between Art and Business is turning into a real partnership that is stable over time, representing drivers of change for both parties which continue to transform and evolve into a complex dynamic and adaptive relational systems (McNicholas, 2004). The two participants in the relationship mix basic values, interests, and culture, through a merger who can have greater effects in terms of corporate image. Art and Business have always been seen as two opposing sectors by mainstream culture in the West. However, McNicholas (2004) describes a rapidly changing reality with new forms of relationship in which each party actively participates in building a bond that tends to be long-lasting. Authors Tsjalle van der Burg, Wilfred Dolfsma, and Celeste P.M. Wilderom (2004) propose a partnership involving museums and private enterprises, in this case, banks, in a public–private partnership. Artworks held by the fund may circulate increasing their value before being sold again. Artworks circulation could bring to business interesting ideas for product innovation, as stated by Dell’era (2010). These ideas can be achieved either through tangible attributes, as technological innovation or through intangible attributes as symbols, because consumers are looking for brands and products capable of offering the psychological satisfaction that goes beyond mere consumption (Hirschman, 1982; Hirschman & Holbrook, 1982;

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Holbrook & Hirschman, 1982). Then understand that cultural projects can represent an interesting research and development activity for companies, allowing them to catch emerging cultural phenomena as a basis for business strategies and innovations (Comunian, 2008; Dell’era, 2010). Besides, as also stated by Stephen B. Preece (2010), thanks to the Art and Business collaboration the private company could bring a wave of creativity and innovation within its business space. Author Lewandowska (2015) went in a depth analysis to investigate the kind of benefits that an Art and Business relationship can bring to companies by analyzing 239 partnerships between companies-arts organizations. The results show that art-based partnerships increase creativity and learning, by enhancing positive relationships with stakeholders at the same time (Lewandowska, 2015). One year later the same author concentrates her investigation on the partnerships between European multinationals, and arts organizations, confirming the fact that the relationship between Art and Business is increasingly becoming a long-term partnership with objectives that goes beyond the pure marketing outputs (Lewandowska, 2016). As a result of her analysis, she found out that these partnerships are potentially more beneficial for business, via the improvement of innovative activities stimulated by the arts-based perspectives, but very difficult to be measured (Lewandowska, 2016). Other authors instead, as Baumgarth (2018), clearly affirm that the partnership between business and the arts is a win-win relationship. By giving examples from both historical and contemporary relationships of Art and Business, Baumgarth (2018) offers a list of the possible benefits resulting for both the business and the art side of the partnership as inspiration, insights, and stimuli for brand research, the construction of identity and image, and different ways of communication. Authors Larry Weinstein and John Cook (2011) in their article describe how a company can benefit from a partnership with a nonprofit-oriented cultural organization as cultural art galleries and museums. Some of these activities can maximize profits and at the same time meet the demands of many stakeholders, such as demonstrating a company’s social responsibility. When a partnership between a business and a nonprofit one involves the sharing of resources, knowledge, and skills, it is called social alliance. The benefits of establishing a social alliance can be both internal and external. Internal benefits mean that managers may use art as a tool to facilitate the collaboration between different staff levels, the development of leadership and innovation. External benefits include a general appreciation of the brand, its reputation, and the increase of its brand image, in addition to high levels of brand awareness and advertising appeal. The first practical problem in the development of this kind of alliance seems to be finding a cultural organization whose resources and capabilities produce synergies for both sides of the relationship (Weinstein & Cook, 2011). The internal/external perspective presented by Weinstein and Cook has been recently elaborated by authors Daniela Carlucci and Giovanni Schiuma (2018) who presented a double perspective on art-based management. In their analysis, the partnership between the arts and the business reality can be interpreted both as a learning platform for the company, able to inspire new organizational structures and business models, both as a vehicle to embed

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products and services with aesthetic values. The first perspective, which can be defined internal—or “art as a learning platform”—is still understudied, and authors like Strauß (2018) ask for a deeper and wider analysis of the processes of value creation resulting from the encounter between a business organization and the art or the artistic intervention. The second perspective of analysis on Art and Business presented by Carlucci and Schiuma (2018) is an evolution of the external benefits previously presented by Weinstein and Cook (2011). This perspective of analysis finds a wider application in numerous studies dedicated to brand image and reputation, a kind of output that is fundamental in the Art and Business relationship and that will be developed in the next paragraph.

4.1.1

Art and Branding

Understanding how a brand creates meaning for the consumer has become an imperative for companies wishing to operate in contemporary markets (Aaker, 1997; Aaker & Keller, 1990; Keller, 1993, 2003). Much of the literature on consumption, in fact, now supports the hypothesis that consumers build part of their identity in collaboration with brand culture (Fabris, 2009). The first mode through which a brand interacts with the consumer is visual: indeed logos, design, packaging, and marketing campaigns are visual communication tools designed to stimulate the creation of distinctive brands images in the minds of consumers (Schmitt & Simonson, 1997; Schroeder, 2005). Often artists actively participate in the creation and implementation of the company’s visual identity and therefore some of the literature in the field of consumer and brand study has unsurprisingly involved the analysis of brand visual communication (Schroeder, 2002). Often this interest has been reflected in the criticism leveled at the world of consumption and trade blamed for engaging the visual arts in a process of commodification (Bourdieu & Haacke, 1995; Pelzer, 2006). In fact, there has always been some interconnection between brand strategies and visual arts. For example, advertising is a process of communication that has always interacted with the creative community so extensively as to be considered part of it (Lehu, 2011). Some authors part of this literature review primarily point to the fact that companies are stealing artistic and cultural activities to activate their brand strategies, presenting interesting research ideas (Ryan, 2007; Schroeder, 2005). Pielah Kim, Hua Chang, Rajiv Vaidyanathan, and Leslie Stoel (2018), via the implementation of two experimental studies demonstrate that a brand can enter into new markets via the support of artists having personalities that match the components of that specific target. As a secondary result, the same authors also show that any negative impact in terms of brand perception is observable on loyal customers when the personality of artists does not match with that of the brand (Kim et al., 2018). Regarding product branding, authors Peter Pelzer and Daniel Hjorth (2007) demonstrated that the use of a particular form of art can help to create the same

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image and the content of the brand. The authors presented the example of the Greek myth of Phaeton used by Volkswagen to produce the homonym luxury car and to associate the image of the product with effect, passion/desire, and wonder (Hjorth & Pelzer, 2007). When not directly connecting art or artists to their branding activities, some companies try to transform their brands in heritage objects via techniques that are proper to the art world, as the creation of brand museums (Chaney, Pulh, & Mencarelli, 2017). Same advice for authors Antonella Carù, Maria Carmela Ostillio, and Giuseppe Leone (2017) who described the company museum of Salvatore Ferragamo; the Italian luxury company strengthens brand value by promoting the company’s heritage to satisfy the consumer’s search for authenticity, corporate museum being an authentication tool (Carù et al., 2017). Other authors, however, see this interaction between arts and commercial brands as a potential threat to the independence of the two sectors, primarily to the arts and culture (Pelzer, 2006). The main danger stems from the fact that some companies are trying to convince the public that “cultural activities are no longer possible without the support of enterprises” (Klein, 2009: 35). In doing so, however, the freedom of artistic creation could be compromised, going so far as to conceal its communicative power which is, after all, the main motivation for managers of commercial enterprises to set out into an area apparently so different from that of business. Other authors as Schroeder (2005), on the contrary, states that successful artists tend to act exactly as brand managers, actively involved in the development and promotion of themselves as cultural products. Schroeder states that the history of art can bring useful tools to understanding the processes of branding and consumer behavior and to prove his thesis he offers examples of strategies implemented by three successful, contemporary artists: Andy Warhol, Barbara Kruger, and Cindy Sherman. As for the interconnection between art and culture, Jonathan E. Shroeder suggests that contemporary artists cooperate with brands in several ways. First, by taking possession of brands and commercial symbols in their art (Lehu, 2011; Schroeder, 2005). The names of some artists, also act as a form of brand, as in the case of Warhol, Michelangelo, or Picasso (Schroeder, 2005). Perhaps the author states that no other market tends to be so clear in the relationship among the name, value, and branding (Schroeder, 2005). In conclusion, Schroeder states that visual art is an important reference system for brand managers, art directors, and advertising agencies. Managers of brands have a lot to learn from art and artists not only to better understand the interplay between brands and identities but also the flow of culture and trade. On the other side, intelligent use of the Art and Business partnership has any negative impact on the art and cultural side of the relationship. The work of Pelzer (2006) stands in marked contrast to the views expressed above. The author states that, although there has always been a relationship between art and commerce, the recent changes in the role of the artist and his performance concerning management pose the danger of implosion between the two spheres. Art and management are not fair partners because the emancipatory potential of art is likely to be commodified (Bourdieu & Haacke, 1995). The main danger faced by

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companies that sponsor arts is that these companies would be able to influence their artistic value, however minimal their support of an event or a work of art. In this way, however, according to Pelzer, Art and Business are likely to erode and collapse into a process of commodification likely to affect mainly the first part of this relationship. A negative effect, actually, can impact also the other side of the relationship, named the business, as stated by Kristal and Baumgarth (2018). The two authors describe the spontaneous and potentially negative co-creation activity by professional artists and consumer activists via an experimental study to test the presence of negative humor or negative attacks against brands. Their study shows how the presence of an “artist” strongly reduces possible backfire effects on the brand (Kristal & Baumgarth, 2018). This and other problems as commodification previously described by Pelzer (2006) are concerns for arts, as well as for brands, especially for luxury brands; this is why numerous analyses on Art and Business have been recently developed in the field of the luxury industry. The next section will be devoted to the description of this particular form of relationship.

4.1.2

Art and Luxury Business

A recent study by Chailan (2018) offered a complete analysis of the different possible binding modes between arts and luxury business; the author analyzed 152 product or service-oriented luxury brands belonging to the two biggest luxury association members: the French-based Comité Colbert and the Italian Altagamma. The binding modes resulted from the analysis are: business collaborations, patronage, foundations, and artistic mentoring, all diverse in terms of intensity of engagement between the two parts of the relationship (Chailan, 2018). Before this study, other authors described the binding modes observables between luxury brands and the art field. For example, Ryan (2007) focuses on the behavior of a famous fashion brand, luxury company Prada and she analyzes the use of art that this brand puts into practice for its strategic purposes. In those years, the owners of brands such as Louis Vuitton, Armani, and Cartier advocated a new postindustrial luxury model in which the art was necessary to ensure distinction compared to other brands. Such strategies enabled these brands to build an artistic identity that has contributed to the blurring of business operations transforming luxury into consumer products. The recognition of luxury brands as agents of art is based on their recognition of the international art scene. For this reason, the author Nicky Ryan (2007) asserts, Prada and other luxury brands such as Louis Vuitton, begun to work closely with artists and avant-garde architects who proved able to nurture and produce symbolic capital for the brand. They contributed to strengthening the image of Prada and the redefinition of its corporate identity. With the example of Prada, one also notices that some businesses, specifically many fashion houses, do not just yearn to transform their production into art, but they want to transform their brand image into an active player in the art world. This can be

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achieved by active, continuous, and well-planned cooperation with the art world. The brand becomes art if the arts community recognizes it as such (Bonsdorff, 2012; Erjavec, 2012; Heinich & Shapiro, 2012; Naukkarinen, 2012; Naukkarinen & Yuriko, 2012; Shiner, 2012; Shapiro, 2004; Shapiro & Heinich, 2012). The transformation of a brand into a cultural player active in the arts resulted to be a subtle strategy that can be summed up by the concept of artification (Kapferer, 2014). Jean-Noël Kapferer says that luxury companies are looking to transform their products into works of art to address the need to increase sales volume. Just like any other business, even the major luxury brands have to increase sales but, in this way, they betray the unspoken promise that such companies conclude with the consumer: the promise of rarity. Luxury products, in fact, must be perceived as rare, intended for a few select people who can afford to support a high premium price in exchange for a precious and rare product that is also the hallmark of their taste and their social status (Kapferer, 2012). The reality, however, shows a dramatically different state of facts, a reality in which the producers of luxury goods come together more and more frequently in conglomerates able to implement economies of scale and scope to deal with increasingly globalized markets (Lipovetsky & Roux, 2003). Jean-Noël Kapferer therefore says that the growing proliferation of luxury goods and collaborations among artists, galleries, or museums is not fortuitous but results from a deliberate strategic choice implemented by companies in the luxury sector to counter the danger of commodification. Failing to respond to the mandate of rarity from consumers, luxury products are likely in fact to be perceived as commodities, losing their aura and no longer able to justify their high price. Other authors argue that the success of luxury brands tend to be auratic, therefore similar to works of art (Benjamin, 1970; Dion & Arnould, 2011). In line with the statement made by Walter Benjamin (1970) on the mechanical reproduction of works of art, mass distribution strategies reduce the perception of exclusivity and superiority of technique and aesthetics, thus attacking the quality and symbolic perception related to luxury brand. In this sense they represent a weakness for these companies (Assouly, 2005; Dion & Arnould, 2011). Some of these authors suggest exploiting the auratic characteristic of luxury brands to meet the growing mass distribution of these products (Dion & Arnould, 2011; Kapferer, 2014). It follows that the lack of rarity for luxury goods can be managed through the myth of the creative director of the brand, the aestheticism of the stores or the products, turning them into works of art through collaboration with artists in their creation or through their exposure in museums and galleries (Dion & Arnould, 2011; Kapferer, 2014). Consumer culture is increasingly becoming a visual culture, which is why the analysis of consumer behavior tends to be more and more inspired by studies in aesthetics (Schmitt & Simonson, 1997; Schroeder, 2002). The authors belonging to this body of research, however, say that the aestheticization of objects and luxury brands is not limited to the simple need for an aesthetic experience for the consumer. The relationship with the art world for fashion companies, especially those in the luxury sector, is not limited to the simple desire to improve their image. These

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brands now state that they belong to the arts, to make their auratic indisputable and to continue to increase the volume of their production without betraying the implicit pact signed with the end user concerning rarity. Producers of luxury goods were increasingly merged into conglomerates able to implement economies of scale and scope to address increasingly global markets. Practical examples of this reality can be found, for example, in the luxury giants LVMH, Kering, or Richmond, which have battled for years in the fight to buy the best available brands of luxury (Lipovetsky & Roux, 2003; Kapferer & Bastien, 2009; Roux & Floch, 1996). Once purchased, the luxury manufacturing companies—usually familiar or small and medium enterprises—become part of holding companies that are increasingly similar to financial conglomerates rather than companies carrying the tradition of centuries of know-how and ability to produce high-quality goods with high symbolic value (Kapferer, 2012, 2014; Masè & Cedrola, 2017). Large financial luxury conglomerates cannot lose the game of globalization by limiting productivity or by taking the risk not to produce enough luxury goods for export to developing countries. Their absence in these markets would give way to the advent of new producers able to conquer the imagination of a consumer who is not yet accustomed to hierarchy of this sector. This in the long term could lead to serious losses in the reputation of luxury brands, however robust and well recognized in their countries of origin. This might have negative impact on future sales (Kapferer, 2012, 2014). The major luxury brands therefore need to increase their production to meet a growing demand for such products. They also allow extensions of the brand toward products with higher rotation of sales and availability to the general public. Those products generate revenues, as in the case of cosmetics of large luxury houses (Kapferer, 2012, 2014; Lipovetsky & Roux, 2003). Jean-Noël Kapferer states that the rarity of luxury can now be reproduced artificially by launching limited editions of products able to stimulate the interest of consumers and to increase the desirability of such goods (Kapferer, 2012). The interaction between the business world of luxury and the one of art therefore has the ultimate goal of positioning luxury products as authentic pieces of contemporary art (Kapferer, 2012; 2014) that is to say, original creations by designers who are recognized as real artists ( Dion & Arnould, 2011; Kapferer, 2012). Authors Delphine Dion and Eric Arnould (2011) have dedicated their analysis to the charisma of these designers developing a theoretical perspective based on the figure of the creative director working in luxury firms. The authors investigate how luxury companies transfer this charisma to the retail channel through the attributes of similarity and contiguity (Dion & Arnould, 2011). By binding with art, the strategy of luxury brands emphasizes the beauty of the products as a gift from the artistic creator and as a sign of his unique genius (Dion & Arnould, 2011). The artist transforms any object into an artwork thanks to the power conferred on him by society as a creative subject (Dion & Arnould, 2011; Heinich & Shapiro, 2012; Shapiro & Heinich, 2012). To obtain the legitimate status of art works, luxury goods need their creative directors to be recognized as artists by the larger society of reference. They will have the “power to transform an everyday

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object into a work of art” (Dion & Arnould, 2011: 507). In luxury stores, legitimacy is ensured by similarity or congruence with the art world; stores are more like museums or art galleries, often created by internationally renowned architects (Ryan, 2007). The strategy just described by Jean-Noël Kapferer, Delphine Dion, and Eric Arnould speculates that luxury companies try to connect their sector to the arts in different ways, to jointly exploit the benefits that could result from this legitimacy. Mainly, this strategy would be implemented by businesses to avoid the danger of commodification for luxury products. On this issue, the authors Elen Riot, Cécile Chamaret, and Emmanuelle Rigaud (2013) analyze the strategy applied by a large player in the luxury world, once again Louis Vuitton. Specifically, the authors analyzed the artistic collaboration that occurred between Louis Vuitton and the Japanese artist Takashi Murakami in between the years 2003 and 2010 through the implementation of a case study. In substantial agreement with the concept of artification which will be introduced the following year by Kapferer, the authors define the strategy implemented by Louis Vuitton as a decommoditization strategy to avoid the trap of commodities by maintaining the value perceived by the consumer. According to the authors, the collaboration between Louis Vuitton and artist Takashi Murakami has been a strategic collaboration distributed through its entire value chain, from concept to communications products. The conclusion reached by the authors at the end of their analysis is that a degree of commodification is necessary for brands to stimulate attention in a large audience while in order to not affect the value of luxury products, it could be sufficient to continuously alternate classic collections with collections made with artists (Riot, et al., 2013). Another article published in 2014, which joins a line of studies defined as artification focuses once again on the analysis of retail, as in the case of previous articles of Dion and Arnould (2011) and Riot, Chamaret, and Rigaud (2013). The article by authors Annamma Joy, Jeff Jianfeng Wang, Tsang-Sing Chan, John F. Sherry Jr., and Geng Cui (2014) deals with how consumers perceive and experience the flagship stores of Louis Vuitton. The authors want to prove that the luxury points of sale are becoming hybrid institutions, halfway between museums and art galleries, they defined “M (art) world.” The authors state that by fully embracing the art in its commercial strategy Louis Vuitton become a hybrid institution, partly firm and partly fashion gallery. The authors realised an ethnographic study to understand the experience of consumers in flagship Louis Vuitton store in Hong Kong, noting how the company’s luxury is in effect experienced by consumers as an art institution (Joy et al., 2014). Apparently, other luxury companies such as Prada or Gucci are gradually turning into hybrid institutions via the interconnection between luxury and arts (Okonkwo, 2007; Kapferer, 2014; Joy et al., 2014). The increasing proliferation of luxury goods and collaborations between artists, galleries, or museums is not fortuitous but results from a deliberate strategic choice implemented by companies in the luxury sector to counter the danger of commodification. Unable to comply with the unspoken mandate of rarity that luxury companies pledge to its consumers, the luxury products are likely to be perceived as commodities, losing their aura and no longer able to justify their premium price. In a

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recent article author J.S. Jelinek states that the Art and Business relationship is more than an anti-decommoditization strategy, but a real way to nurture the brand equity, especially when the art applied as a strategic tool is consistently integrated within the whole value chain (Jelinek, 2018). The same advice is shared by authors Eirini Koronaki, Antigone G. Kyrousi, and George G. Panigyrakis who demonstrate via an experiment the positive effect the art-based strategies implemented by luxury brands can have on a specific component of brand equity: brand loyalty. This positive effect is mediated via the attachment to the brand assured by the presence of the arts, initially affecting the art connoisseurs, then moving to the other segment of potential consumers via a bandwagon effect (Koronaki et al., 2018). The next section of this chapter will introduce the first case study presented in this book dedicated to the Art and Business relational strategy applied by the first luxury brand worldwide, Louis Vuitton (Interbrand, 2020) and its owner company LVMH as an ideal form of this relationship.

4.2

Case Study: Louis Vuitton-Mohet Hennessy

This case study explores why Louis Vuitton-Mohet Hennessy (LVMH) can be considered one of the most active conglomerates in terms of strategic connection with the visual arts. The strategy LVMH is managing with the arts will be analyzed through the multiple activities the Company is developing within the arts field, as well as some of the brands it owns like Louis Vuitton. Due to its presence in the art field the flagship brand of LVMH has been aboundantly analysed by scholars investigating the relationship between Art and Business (Joy et al., 2014; Lee, Chen, & Wang, 2015; Megehee & Spake, 2012; Riot et al., 2013; Masè & Cedrola, 2017). The group’s history dates back to 1765 when Irish officer Richard Hennessy decided to set up his own cognac production company in the French department of Charente. In 1971 Hennessy approaches Moet & Chandon champagne producers, founded in 1743, to create the Mohet Hennessy group (Challenges, 2020). The growth of the group culminated in the merger with the company Louis Vuitton in 1987, which gave rise to LVMH (Louis Vuitton Moët Hennessy), one of the leading conglomerates in the luxury world (Lvmh, 2020a). Since 1989, the management of the group has been in the hands of Bernard Arnault—still chairman and CEO of the Company—whose family holds the majority of LVMH’s shares (Lvmh, 2019). Since then LVMH has carried out numerous acquisitions of important brands, internationally recognized as the culmination of luxury style, as Fendi, Givenchy, or Kenzo just to name few. Today LVMH strives to embody the finest quality in art of living. Its business model is made of a mix of heritage and innovation and it is spread worldwide via its 75 prestigious brands and 4910 points of sale (Lvmh, 2020b). The conglomerate brings in €53.7 billion in 2019 in sales through its activities, which are divided into five macro-groups that represent wine and spirits; fashion and leather goods;

4.2 Case Study: Louis Vuitton-Mohet Hennessy

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perfumes and cosmetics; watches and jewelry; and selective retailing (Lvmh.com, 2020b). The aim of LVMH of being the n
1 name in the luxury field continuous today with the ongoing acquisition of the American jewelry house Tiffany (Forbes, 2019). Under the leadership of Arnault, the group operates through a decentralized organization that allows each brand to be independent and achieve its performance target. It is essential to the management of the group that each brand preserves its value, mainly through tight control at the retail level, in order to have greater contact with the end user and maintain a strong brand image. This strategy allowed LVMH to share strategies across brands, leveraging the business capabilities of the conglomerate “to foster growth and development, while maintaining autonomy to preserve individual brands’ identities” (Cavender & Kincade, 2014: 245). The strategies applied by Arnoult were an absolute innovation in luxury, and they contributed to the consolidation of this industry. Furthermore, those strategies have been recently proposed by other luxury brands as Prada or Gucci (Cavender & Kincade, 2014). The company’s mission is today to be a symbol of elegance and creativity through the unification of tradition and modernity. The prestigious lifestyle, the genuine know-how, and the direct management of the distribution of goods have increased the dynamism of the brands’ holdings. The formula used by Bernard Arnault to manage the LVMH group’s brands consists of anchor brands image in a tradition that respects high-quality and outstanding craftsmanship. In addition to the link to their local roots, another basic LVMH value is the responsibility toward their customers and communities expressed through a series of corporate social responsibility-related activities (Masè & Cedrola, 2017). One of the main activities in support of the community is dedicated to the world of culture and the arts. The LVMH group and its brands continuously demonstrate their support of artistic and cultural activities in their traditional and contemporary expression.

4.2.1

Louis Vuitton-Mohet Hennessy and the Arts

Investments of an aesthetic nature, such as those arising from the relationships with the visual arts, interact with the immaterial and symbolic nature of a brand (Gasparina et al., 2009). To be effective, marketing has to be open and receptive to third-party sources for the promotion of the brand. Equity (Aaker, 1997; Keller, 2003) may come from every kind of domain, including relationships between people and the sacred, the symbolic, aesthetic pleasure, and art (Assouly, 2005; Fabris, 2009; Gasparina et al., 2009). This seems to be an imperative for LVMH and its brands, whose culture is based on authentic know-how, a long-standing tradition, and innovation: all values linked to the company’s respect for national and international heritage and arts.

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The attention of LVMH to artistic heritage and culture range from the restoration of historical monuments to the support of and contributions to the exhibition of young contemporary artists (Lvmh, 2020c). Louis Vuitton is the brand of the group that shows a complete Art and Business strategy since long time (Masè & Cedrola, 2017). Between the 1990s and the 2000s Bernard Arnault, together with the former CEO of Louis Vuitton Yves Carcelle, introduced artistic collaborations into the DNA of the brand itself, and let it to become the first luxury brand worldwide in terms of consumer recognition (Crivelli, 2014). The relationship between business and art reached its peak when the creative director Marc Jacobs joined the company in 1997; a collector of contemporary art , Marc Jacobs invited some of the most outstanding artists—as Stephen Sprouse in 2001, Takashi Murakami in 2003, and Richard Prince in 2008—to join forces with Louis Vuitton through diversified activities as product design, creation of pop-up stores, and art installations for LV flagship stores (Masè & Cedrola, 2017). The complexity and the sheer number of collaborations with artists initiated by the company is the basis of its brand identity building strategy that spread over the other brands of the conglomerate. Some examples can be that of Fendi sustaining the recent restoration of Rome’s most famous historical fountain—Fontana di Trevi—or Dior who is presented as an artist and a gallerist himself, in addition to the exhibitions and retrospectives that are currently advised through the company website (Dior, 2020; Fashion network, 2015). Almost every brand part of the conglomerates show an interest in the arts or more or less active participation in the artistic sphere, and this characteristic is also shared by those brands that are next to join the group, as Tiffany (see Chap. 4 of this book). Initiatives in arts and culture are planned and managed at the brand level, but it is at the group level that the Art and Business strategy appears more complete. These lasts are well described in the annual report released by the conglomerate, and directly on the LVMH website with a well-described and dedicated section (Lvmh, 2020c). In this website section, the group states that the arts are a source of inspiration for the creation of luxury products, and this is the main reason that justifies its support. The Company makes a clear parallel between the image of the artist and that of the LVMH house craftsmanship. As stated by Bernard Arnoult himself: “Right from the creation of LVMH, I clearly established support for the arts and culture as a key component in our development. Our commitment embodies the values that all our Maisons share—savoir-faire, excellence and creativity –and anchors them in their artistic, cultural and social environment” (Lvmh, 2020c).

LVMH separated the art and culture sustain in three different sections: Corporate Philantrophy, Fondation Louis Vuitton, and Maison LVMH. Initiatives of Corporate philanthropy were introduced in 1991 by Bernard Arnoult. Through philanthropic activities LVMH wants to be an active part of the conservation, production, and promotion of contemporary art and culture, in France and abroad. The most recognized conservation activity probably concerns the patronage of the Château de Versailles. In addition to having participated in the

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restoration of the chateaux, LVMH continues to be an active part in the acquisition of the treasures exhibited in Versailles, such as the recent purchase of a verseuse belonging to Louis XVI dating back to 1686 (Chateauversailles, 2020). Regarding the support and promotion of art and artists, some of the exhibitions that have taken place over the past 30 years have been dedicated to international artists such as Matisse, Picasso, Van Gogh, Giacometti, as well as leading contemporary artists as Richard Serra, Annette Messager, or Christian Boltanski (Lvmh, 2020c). The activity of the exchange of artworks allowed LVMH to create boundaries with international cultural and artistic institutions, as the Pushkin Museum in Moscow, the Serpentine Gallery in London, and the Ullens Foundation in Beijing (Lvmh, 2020c). Another activity part of the Art and Culture actions of LVMH concerns the opening of the Foundation dedicated to its flagship brand: The Louis Vuitton Foundation. Inaugurated in Paris on October 20, 2014, the Foundation’s vocation is to support and show to the broadest possible audience contemporary French and international artistic creation. The museum was designed and conceived by the archistar Frank Ghery, and the Foundation’s structure has become a tourist attraction, as well as a point of reference for art in the French capital (Fondationlouisvuitton, 2020). At least can be mentioned the Maison LVMH/Arts–Talents–Patrimoine, an institution currently under construction close to the Fondation Louis Vuitton, in Paris, that will host exhibitions, concerts, and performances for the large public (Lvmh, 2020c). It will open in 2020 hosted in the former structure of the Musée des Arts et Traditions Populaires in the heart of the Bois de Boulogne (Garrigues, 2017; Lvmh, 2020c). Again, this project is proposed to create a dialogue with young people, with a clear educational inclination enriched with the support from the Institut des Métiers d’Excellence LVMH; this institute is conceived as a certified qualification program that helps the LVMH group ensures the transmission of its expertise in design and manufacturing to younger generations (Ferrand, 2019). Innovation through art and creativity is therefore a fundamental activity for the LVMH group and its brands, via a complete strategy that goes from heritage restoration to artist support in the creation of new artworks and their circulation in cultural institutions worldwide. It must be highlighted how most of these described activities dedicated to Arts and Culture are open to a dialogue with younger generations; they are the next generation of consumers of luxury items.

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Chapter 5

Art and Corporate Social Responsibility

Abstract An important part of Art and Business relations is built on a philanthropic basis, with the business part of the relationship acting as a good citizen sustaining arts and culture for the sake of their community. Authors question if this philanthropic perspective is still valuable when business obtain benefits for their Corporate Social Responsibility strategies via the sustain of the arts. The main question is the difference intercurring between philanthropic activities (where benefits can be hiding behind CSR results) and sponsorship, where the benefits resulting from the relationship are openly defined. A case study on the American enterprise Tiffany will shed a light on this topic.

5.1

Art, Corporate Social Responsibility and Strategic Philanthropy1

The European Agenda 21 considers that “culture is the fourth pillar of sustainability” (Herranz de la Casa, Manfredi, & Cabezuelo-Lorenzo, 2015: 218). Arts and culture are valuable assets for companies in need of building their Corporate Social Responsibility strategies, especially via investments in strategic philanthropy as the principal component of their Art and Business relationship. The table below (Table 5.1) shows the authors of this line of research and the main theoretical contributions of their analyses. In their paper authors, Zsolnai and Wilson (2018) analyze the cases of Italian companies Illy Café and Brunello Cucinelli for whom art is not a simple marketing tool, but a means for providing greater meaning of their business story. In the same line, authors Herranz de la Casa, Manfredi, and Cabezuelo-Lorenzo (2015) show how (Spanish) companies leverage arts and culture for their business purposes, especially to increase their corporate reputation: “If CSR is understood as the 1 Section 5.1 is revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016.

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_5

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Table 5.1 Second line of research: Art and& Corporate Social Responsibility Line of Research 2 (First and last items published) Authors 16 selected items

Main theoretical contributions

Art and Corporate Social Responsibility and (strategic) Philanthrophy (1989–2018) Alexander (1996), (2014); Bloch (1989); Bulut and Bulut Yumrukaka (2009); File and Prince (1998); Fishel (2002); French (1991); Herranz de la Casa et al. (2015); Jeffri (1989); Kirchberg (2004); Kressner Cobb (1996); Moir and Taffler (2004); Nam and Shin (2015); Ulibarri (2000); Wyszomirski (1996); Zsolnai and Wilson (2018) Art and culture are pillars to build Corporate Social Responsibility for companies looking for good reputation. A renowned technique to join corporations with the art and cultural field is the patronage, or philanthropy. Most of the articles belonging to the present strand wonder if an activity of donation is really possible at the level of an enterprise, or if corporate philanthropy is nothing more than a subtle form of sponsorship.

Source: Table’s form elaborated upon by the present author

voluntary integration by companies of social and environmental concerns in their business operations and their interaction with their stakeholders, then cultural communication remains an element of social responsibility” (Herranz de la Casa et al., 2015: 225). To improve their CSR by art and culture, companies can apply different models; the most used being the patronage (or philanthropy). With philanthropy the beneficiary of the donation is not obliged to guarantee a return of visibility, as in the case of sponsorship, so demonstrating to be more in line with a CSR perspective. Instead, a company is as far from social responsibility as much it tries to capitalize on the “investment” (Porter & Kramer, 2002 in Herranz de la Casa et al., 2015). From the perspective of the arts, author Max Bloch (1989) states that the American support system for the arts proves successful examples of philanthropic activities. Support for the arts and culture has at its base a plurality of entities— foundations, individuals, and businesses—propelling arts organizations into becoming active in the search for more adequate sources of funding (Bloch, 1989). This peculiarity of the American system at the support of the arts is in continuous evolution, with a proficuous dialogue between the arts and its sustainers, as described by author Margareth-Jane Wyszomirski in her analysis of 2010 (Wyszomirski (1996). This is not the same in other countries, as described by authors Bulut and Bulut (2009) presenting the Turkish scene where companies are not able to cover all the numerous requests for sustain by cultural and performing institutions. Actually, not all art associations would feel at ease being supported by government funds. Many artists and many art organizations prefer to raise funds from other donors, including businesses, in order not to compromise their freedom to criticize government policies. This last statement is very thought-provoking because it runs counter to mainstream views about the nature of freedom for the arts. Business involvement in the arts is often resented and bitterly criticized for potentially limiting the artists’ freedom of expression (Bourdieu & Haacke, 1995). In

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contrast, the authors Bulut and Bulut (Bulut & Bulut Yumrukaka, 2009) argue that Turkish arts organizations often feel limited by the presence of government institutions. They strive to ensure a degree of freedom by engaging the participation of private enterprises. Arts organizations in Turkey do not behave as mere recipients of money but are increasingly proving to be an active member in a relationship that is hopefully beneficial to all its adherents. One might be wondering at this point—despite the openness of certain artists, or cultural institutions to receive money from business companies—if activity of donation is really possible at the level of an enterprise, or if corporate philanthropy is nothing more than a form of sponsorship. Institutional founders are often accused of encroaching on the freedom of the arts organizations mainly because they are moved by the achievement of corporate or government goals, even before attempts are made by philanthropies. Those who donate in a personal manner, on the other hand, do not have these needs, so they tend to be more accepted by arts organizations and curators who work in these organizations (Martorella, 1996). Evidently, though, not the entire world of the arts resents these sources of financing. It was in fact noted that arts organizations have greatly increased their activity over time, as can be seen in the article by Volker Kirchberg (2004). Since 1960s there has been a considerable increase in funding from companies and private foundations which is related to certain unsteadiness in individual interventions (Jeffri, 1989). Joan Jeffri (1989) is interesting in this regard as she claims that even if the American company is very far from the Italian Church or the pomp of the royal houses in France in supporting the arts, in the US private philanthropy supported the growth of the arts in recent years, as has been the case in all English-speaking countries, and as also demonstrated by the work of David Fishel (2002). This private philanthropy is supported both by individuals and enterprises, that is, companies are now skillful at using the appropriate means of communication for the promotion of their philanthropic activities. It is probably also due to this ability to communicate that a considerable number of people have approached art in recent years in the US (Jeffri, 1989). The study by Victoria D. Alexander (1996) establishes that funding from different sources has an impact on the behavior of arts organizations but not in the way commonly believed. Thanks to the presence of different founders, the internal decision-makers of arts organizations can maintain their artistic freedom by using the different sources of funding. The fragmentation of funding sources to the arts could ensure that both curators and directors of art institutions choose which founder is best suited for different types of events. The question is whether individuals are aware of the fact that their investments have effects on future cultural capital for future generations. Rational philanthropy in the arts and humanities tends to grow because it allows companies to get a high return rate. Consequently, as stated by author Carlos A. Ulibarri (2000), the long-term prospects for aesthetic appreciation might be compromised by short-sighted political choices dictated by the logic of return on investment. Contemporary philanthropic policies should therefore be motivated by something beyond pure self-interest, whether it be individual or company-based, because these policies are so impactful in creating the cultural capital of a society and its future citizens. In fact, it seems pretty hard to say that

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enterprises can participate in true philanthropic activities because individuals tend to donate for maximum return on investment. It is therefore assumed that rational philanthropy involves the fact that individuals are forward-looking and choose investments that maximize results. Over the years, corporate philanthropy has therefore continued to grow and evolve, even during the 1990s, with the creation of new foundations, the growth of new financing mechanisms such as online philanthropy, and venture philanthropy (Kressner Cobb, 1996). A proper distinction between sponsorship and corporate philanthropy, however, continues to be problematic, especially if it is pushed towards philanthropic forms even more linked to the achievement of tangible goals as a greater focus on innovation and looking for creative solutions for business problems, as stated by Stephanie French (1991), program director of art at the Philip Morris Companies Inc. Nina Kressner Cobb (1996) introduces the concept of “new philanthropy” stating that this phenomenon refers to a variety of developments related to the late twentyfirst century. The main criticisms of this new form of philanthropy are obviously related to making donations more like the treatment of business accounts. New philanthropy is essentially accused of wanting to harness the power of the nonprofit sector through the rationalization of donations. Authors Lance Moir and Richard J. Taffler (2004) are the only ones to present a study about the actual existence of corporate philanthropy, limited to the business reality of the UK. Through the textual analysis of sixty case studies on The Art and Business website in 2001 (http://artsandbusiness.bitc.org.uk/case-studies-ab), the authors have tried to understand the reality behind philanthropic relations or uprooted from the purpose of business. What is referred to as philanthropy, in fact, can sometimes mask the normal search for profit that moves corporate actions. The important thing is to understand how these donation activities are guided by the desire of companies to be perceived as good citizens or mainly due to manipulation useful to achieve certain business goals. These reasons do not have to be alternatives but may occur in various combinations with one another. The analysis conducted by the authors on the business sample has not find any evidence of pure altruism in the case of business support to the arts, with an always evident business motivation (Moir & Taffler, 2004). Pure philanthropy, then, would seem not to exist in the enterprise. This assertion is also confirmed by the article by Victoria Alexander (2014), which assumes that economies are first of all social relations. When a company or a government gives to the arts, therefore, it is normal for the recipient to return specific or nonspecific benefits to the founder. These visions position institutional philanthropy far from the gift and are much more related to a relationship of sponsorship. Actually, it is thanks to this exchange that the recipients can leverage companies to apply for financial support. Business needs prestige and social recognition, and for this reason, it has an interest in establishing philanthropic relations with the arts. Arts organizations are now conscious of the validity of their offer and often communicate it openly because, in the twenty-first century, the receiver of the philanthropic gift can no

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longer afford to be passive but must become an active purveyor of public and private funds (Alexander, 2014). Donor–recipient interactions, as well as relationships of sponsorship and other activities that can bind Art and Business, have their effects on artistic production, the company’s image and that of the same artistic organization. These dimensions are perceived and, in many cases, experienced by ever more cultivated and attentive consumers (Fabris, 2009; Fabris & Minestroni, 2010). To conclude, also authors Nam and Shin (2015) state that corporate support for the arts used to be more philanthropically oriented in the past, while recent years show corporations looking for support to be perceived as socially responsible. They also show with their study that large companies, tend to structure their corporate giving to the arts via foundations, making important donations. Karen Maru File and Russ Alan Prince (1998) show with their study how personal values of corporate owners interact with corporate philanthropic values. Through a study of 478 businesses supporters of arts organizations, the authors found that privately held businesses are active participants in cause related marketing activities, especially when business owners look for an increase in company and product image. The case study which follows, dedicated to the American company Tiffany, wants to make focus on pure philanthropic activities, and CSR benefits described in this chapter.

5.2

Case Study: Tiffany

The holding company Tiffany & Co. was founded in Manhattan in 1837 by Charles Lewis Tiffany (Tiffany and Co, 2020a). The company is active worldwide in retail, design, and manufacturing of jewelry, timepieces, home accessories, and fragrances (Tiffany and Co, 2018a, 2018b; Tiffany and Co, 2020b). The particular shade of blue Tiffany adopted for all of its advertising, shopping bags, and other promotional materials were introduced in 1845 by the same Charles L. Tiffany, and it is still the main sign of recognition of Tiffany’s products and brand. The Blue Box is a real icon in the world of luxury jewelry and is still today a refined symbol of the elegance and exclusivity of the brand all over the world (Tiffany and Co, 2020a). The pattern Blue Tiffany is also highly visible in the brand’s stores, and mainly in the Tiffany & Co. flagship store in New York, renowned for being central to a very iconic movie produced in 1961: Breakfast at Tiffany’s, starring Audrey Hepburn (De Marco, 2018). The Maison’s silver and diamond creations continue to fascinate the world still today, since the international recognition they received at the Universal Exposition of Paris in 1867 (Tiffany and Co, 2020a). In November 2019, Louis Vuitton-Mohet Hennessy (LVMH) announced the acquisition of the brand Tiffany under payment of $16, 2 billion, signing the biggest

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operation of acquisition in the luxury industry; the entire operation will be finalized in mid-2020 (Forbes, 2019). Since the early years, great attention has been paid by Tiffany to the world of art. As an example, after the loss of Charles Lewis Tiffany in 1902, his son, Louis Comfort Tiffany, became the first art director of the company (Charles, 2011). Thanks to his studies in paintings, and being a painter himself, Louis C. Tiffany was a real passionate of the arts and an art connoisseur; not surprisingly he founded the Tiffany Artistic Jewelry department at the Fifth Avenue store in New York, claiming each of his creations to be works of art, or “Art Jewellery” (Philips, 2006). This close relationship with the art world is dictated primarily by the desire to raise the jewel to a veritable art form; this aim continues today as also stated by the current CEO, Alessandro Bogliolo, named in 2017 (DeMarco, 2017; Bloomberg, 2020). In parallel, the will of Alessandro Bogliolo and the new board is to rejuvenate the Tiffany brand seducing those new consumers whom the whole world of luxury is looking with interest: the millennials (Helaoua, 2019). To reach this objective a new chief artistic officer—responsible for the design of the jewels and the artistic vision of the brand—was named in February 2017. The person designated for this position is Reed Krakoff, who is celebrated globally for his contributions to the world of fashion, interior design, and the arts (Hoang, 2017; Sidell, 2017). The conquest of new consumers not only plays on the recognizability of the brand and a more attractive design. The millennials have in fact proven to be consumers attuned to social issues and willing to invest their money for a brand that proves to be attentive to the environment and the society at large (Helaoua, 2019). For this reason, in addition to enriching the consumer experience through art and design, Tiffany & Co. is involved in numerous support activities through a rich corporate social responsibility strategy.

5.2.1

Tiffany and the Arts

Tiffany & Co.’s main desire is to have the jewel recognized as a form of art. To reach this objective, the company acts as a responsible corporation managing various philanthropic activities directly connected to the brand core business (Tiffany and Co, 2020c). The complex approach to philanthropy managed by Tiffany and Co. is structured in three main activities. The Tiffany & Co. Foundation, the Tiffany Cares, and the various activities integrated under the name of Corporate Giving (Tiffany and Co, 2020c). The Tiffany & Co. Foundation is active since the year 2000, mainly operating through granting subsidies given to nonprofit organizations committed to preserving the environment. In 20 years, the Foundation collected around 80 million dollars to advance responsible mining efforts, to protect the world’s ocean and coral reef ecosystems (Tiffany and Co, 2018a, 2018b; Tiffany and Co, 2020c). All the initiatives of the Tiffany Foundation make a clear reference to the company’s core

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75

activities, as promoting standards for responsible mining and supporting the areas from which Tiffany & Co. gets its diamonds, corals, and other exclusive raw materials. Tiffany Cares is an interesting corporate social responsibility activity dedicated to Tiffany’s employees’ donation actions; this project encourages employees volunteer efforts to “be brilliant together,” as stated by the Company’s cultural values with a clear reference to the brilliance of diamonds (Tiffany and Co, 2020c). Finally, the Corporate Giving section collects a series of different fundraising activities in which the company is involved. An example may be cause-related marketing such as the Tiffany Save the Wild collection launched in 2017 whose proceeds have been donated to the Wildlife Conservation Network, or even the substantial grants of about 2.75 million of dollars dedicated to restoring parks and gardens in Huston, Chicago and Miami in 2008 (Tiffany and Co, 2020c). Another section of corporate giving is finally dedicated to the arts, as the decorative arts play a fundamental role in the jewelry industry; this is one of the main reasons why Tiffany & Co. Foundation is committed to preserving and promoting them. Tiffany abundantly sustains museums and artists; this activity finds its historical basis in the support given to the arts by Louis Comfort Tiffany—passionate about art and artist himself—who was the first member of the family to become involved in art support towards the Metropolitan Museum of Art in New York and the New York Society of Fine Arts. This activity that occurs under the same brand roots has recently expanded with the support of the Whitney Museum of American Art in New York and overseas partnerships with the Outset Contemporary Art Fund (Tiffany and Co, 2020c). Following the example of Louis Comfort, in 2015 Tiffany & Co. announced a new partnership with the Whitney Museum of American Art in New York. This long-term commitment involves five million dollars of sponsorship for three biennials at the Whitney Museum (in 2016, 2019, and 2021), which merges philanthropy, art, and commerce. The biennials at Whitney Museum offer a snapshot on contemporary art and the Tiffany support pursues the goal to tie the brand to the world of arts and emerging artists to approach and seduce millennials consumers (Cascone, 2015; Samaha, 2017; Steadman, 2015). Another long-term partnership was inaugurated in 2017; Tiffany & Co. entered a three-year partnership with London’s Outset Contemporary Art Fund to create the Tiffany & Co. x Outset Studiomakers Prize (Outset, 2020; Tiffany, 2018a). The project is part of a strategic public–private partnership of Studiomakers, which aims to support the flow of artistic ideas and emerging young talents in London by guaranteeing them easier access to creative workspaces (Outset, 2020). The prize, available for seven graduates of the Master of Fine Arts selected from among the best art schools in London, offers the winners a year’s access to a studio without rent and shared exhibition space in London. Barrat West, Vice President and Managing Director of Tiffany & Co. UK, says that, thanks to this award, in autumn 2019 Tiffany & Co. will have supported 20 young artists (Outset, 2020). Another art-based strategy connected to the museum world closer to the core activity of Tiffany is the recognition of jewels as a piece of art. In this regard, the

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Foundation uses two strategies. On the one hand, it supports the most important jewelry exhibitions; on the other hand, it creates spaces within existing museums dedicated to the display of jewels. This last strategy is realized through the creation of the Tiffany Foundation Gallery which embodies the mission of the Foundation to promote the appreciation of jewels as a form of art. In 2008, the Museum of Arts and Design in New York inaugurated the Tiffany & Co. Foundation Gallery, the first national gallery dedicated exclusively to contemporary jewelry (Tiffany & Co Foundation, 2008). A similar initiative was proposed in the Netherlands in 2013, where the Tiffany & Co. Foundation supported the opening of a new hall in the recently restored Amsterdam Rijksmuseum (Tiffany & Co Foundation, 2013). The Gallery is a new room in the museum that exhibits a collection of international jewels of three hundred pieces from twelve different centuries. The creation of this jewelry gallery was the first important gift of the Tiffany & Co. Foundation at a museum based in Europe. In addition to creating the Tiffany & Co. Foundation Gallery, the Foundation’s support allows the museum to improve the customer experience and its jewelry collection through continuous research and the conservation and digitalization of the pieces (Artdaily, 2020; Rijksmuseum, 2012; Tiffany & Co Foundation, 2013). Another Tiffany & Co. Foundation Gallery was inaugured also in the Museum of the City of New York. The inaugural exhibition of the Gallery Gilded New York was hosted by the Museum of the City of New York from 2013 to 2017 with the desire to show “the city’s visual culture at the end of the nineteenth century” with an important dedication to the brand’s hometown (mcny, 2020). Tiffany & Co. also supports the diffusion and promotion of famous artists’ lives and artworks, and possibly the most important ones are dedicated to Robert Rauschenberg’s (1925–2008). The relationship between Tiffany & Co. and Robert Rauschenberg began in 1951, when the designer of the Tiffany & Co. windows Gene Moore commissioned Rauschenberg to create some scenes for the windows of the flagship store in Fifth Avenue, New York. Together with painter Jasper Johns, with whom he created the design studio Matson Jones Custom-Display, Robert Rauschenberg created a series of windows for Tiffany (Rauschenberg Foundation, 2019). These creations have left a mark on the creativity of the design of the brand’s windows and this lead Tiffany & Co. to sponsor Robert Rauschenberg’s exhibition at the Ullens Center for Contemporary Art in Beijing in 2016. The exhibition held from June 12 to August 21 was followed by the retrospective dedicated to the artist exhibited at the Tate Modern in London from December 1, 2016 to April 2, 2017, and at the Museum of Modern Art showing the most important works created by Rauschenberg during his 60 years career (Bedard, 2016). Lastly is via the Excellence in Design grants that Tiffany & Co. Foundation spread its support to museums and art institutions in the USA as the Museum of Modern Art and the Museum of the City of New York, or the Orlando Museum of Art. Interesting the grant given to the Japan Center for International Exchange, created to preserve traditional Japanese arts and culture in contemporary society (Tiffany & Co. Foundation, 2020).

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The activities just described are attributable to a Corporate Social Responsibility strategy that links the arts support actions to the company’s core activities. In addition to the support of the environment and the traceability of raw materials such as diamonds or corals, great importance is given to activities in support of the visual arts. This strategy is embodied through support for museums and the spread of artists’ recognizance. Accompanied by the desire to transform the jewel into a real form of art, this strategy is concretized with the support of jewelry exhibitions. The challenge that Tiffany will face over the next few years is common to all the luxury brands or maintains brand exclusivity while rejuvenating and seducing new consumers, the millennials. Probably joining the LVMH group will boost this strategy without losing the heritage of this American brand.

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Fishel, D. (2002). Australian philanthropy and the arts: How does it compare? International Journal of Arts Management, 4(2), 9–15. Forbes. (2019). LVMH, propriétaire de Louis Vuitton, rachète Tiffany pour 16, 2 milliards de dollars. Accessed April 02, 2020, from https://www.forbes.fr/business/lvmh-proprietaire-delouis-vuitton-rachete-tiffany-pour-162-milliards-de-dollars/?cn-reloaded¼1 French, S. (1991). The corporate art of helping the arts. Public Relations Quarterly, 36(3), 25–27. Helaoua, Y. (2019). Alessandro Bogliolo, le patron qui veut modernizer Tiffany. Accessed April 02, 2020, from https://www.lecho.be/dossier/portraits/alessandro-bogliolo-le-patron-qui-veutmoderniser-tiffany/10185269.html Herranz de la Casa, J. M., Manfredi, J. L., & Cabezuelo-Lorenzo, F. (2015). Latest trends and initiatives in corporate social responsibility: A communicational analysis of successful cases of arts and culture in Spain. Catalan Journal of Communication and Cultural Studies, 7(2), 217–229. https://doi.org/10.1386/cjcs.7.2.217_1 Hoang, L. (2017). Tiffany appoints reed Krakoff as chief artistic officer. Accessed October 04, 2019, from https://www.businessoffashion.com/articles/news-analysis/tiffany-appointsreed-krakoff-as-chief-artistic-officer Jeffri, J. (1989). Training the new Philantropists. Journal of Arts, Management and Law, 19(2), 11–21. https://doi.org/10.1080/07335113.1989.9943117 Kirchberg, V. (2004). Structures of corporate arts patronage between the world wars: A case study of the corporate leaders P.S. du Pont. Journal of Arts, Management and Law, 33(4), 263–280. https://doi.org/10.3200/JAML.33.4.263-280 Kressner Cobb, N. (1996). Looking ahead: Private sector giving to the arts and the humanities. The Journal of Arts Management, Law, and Society, 26(2), 125–160. https://doi.org/10.1080/ 10632921.1996.9942959 Martorella, R. (1996). Arts and business: An international perspective on sponsorship (1st ed.). Westport, CT: Greenwood Publishing Group. MCNY. (2020). Explore the visual culture of elite New York in the late-19th and early–20th centuries. Accessed October 04, 2019, from https://www.mcny.org/exhibition/gilded-new-york Moir, L., & Taffler, R. J. (2004). Does corporate philanthropy exist? Business giving to the arts in the U.K. Journal of Business Ethics, 54(2), 149–161. http://www.jstor.org/stable/25123333 Nam, J., & Shin, H. D. (2015). Corporate art support through foundations. Actual Problems of Economics, 172(10), 304–315. Outset. (2020). Tiffany & Co. x Outset Studiomakers Prize. Accessed December 15, 2018, from https://outset.org.uk/supported-projects/the-tiffany-co-x-outset-studiomakers-prize-2017/ Philips, C. (2006). Bejewelled by Tiffany, 1837-1987. New Haven: Yale University Press. Porter, M. E. & Kramer, M.R. (2002). The competitive advantage of corporate philanthropy, Harvard Business Review. Accessed July 15, 2013, from https://hbr.org/2002/12/the-competi tive-advantage-of-corporate-philanthropy Rauschenberg Foundation. (2019). Robert Rauschenberg Foundation. Accessed October 04, 2019, from https://www.rauschenbergfoundation.org/artist/chronology Rijksmuseum. (2012). The Tiffany & co. foundation names the Jewellery gallery at the Rijksmuseum. Accessed October 04, 2019, from https://www.rijksmuseum.nl/en/whats-on/ news/the-tiffany-and-co-foundation-names-the-jewellery-gallery-at-the-rijksmuseum Samaha, B. (2017). How Tiffany & Co. Is luring millennials by partnering with the whitney biennal 2017. Accessed April 02, 2020, from https://www.forbes.com/sites/barrysamaha/2017/03/17/ how-tiffany-co-is-luring-millineals-by-partnering-with-the-whitney-biennial-2017/ #6a2add357395 Sidell, M.W. (2017). Tiffany & Co. Appoints reed Krakoff chief artistic officer, Amfitheatrof Steps Down. Accessed April 02, 2020, from https://wwd.com/accessories-news/jewelry/tiffany-coappoints-reed-krakoff-chief-artistic-officer-amfitheatrof-steps-down-10752304/ Steadman, R. (2015). With $5M Gift, Tiffany becomes lead sponsor of whitney Biennal through 2021. Accessed April 02, 2020, from https://observer.com/2015/04/with-5m-gift-tiffanybecomes-lead-sponsor-of-whitney-biennial-through-2021/

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Tiffany & Co. (2018a) Sustainability report 2018, in “investor.tiffany.com”, Accessed December 12, 2018, from https://media.tiffany.com/is/content/Tiffany/Tiffany_Sustainability_Full_ Report?lppromo¼LPC3298&_ga¼2.43817954.691883679.1547802354-775194391. 1547802354 Tiffany & Co. (2018b). Annual reports. Accessed September 16, 2019, from https://investor. tiffany.com/financial-information/annual-reports Tiffany & Co. (2020a). About Tiffany & Co. Accessed April 02, 2020, from http://press.tiffany. com/AboutTiffany.aspx Tiffany & Co. (2020b). Company profile. Accessed April 02, 2020, from https://investor.tiffany. com/overview Tiffany & Co. (2020c). Philanthropy. Accessed April 02, 2020, from https://www.tiffany.com/ sustainability/philanthropy/ Tiffany & CO. Foundation. (2008). News for 2008. Accessed October 10, 2019, from http://www. tiffanyandcofoundation.org/news/2008.aspx Tiffany & CO. Foundation. (2013). The Tiffany & Co. foundation gallery opens at the newly renovated Rijksmuseum in Amsterdam. Accessed October 10, 2019, from http://www. tiffanyandcofoundation.org/news/article/Rijksmuseum.aspx Tiffany & Co. Foundation. (2020). View news by year. Accessed April 02, 2020, from http://www. tiffanyandcofoundation.org/news/ Ulibarri, C. A. (2000). Rational philanthropy and cultural capital. Journal of Cultural Economics, 24(2), 135–146. accessed March 2, 2015. https://doi.org/10.1023/A:1007639601013 Wyszomirski, M. J. (1996). Where do we go from here? The future of support for the arts and humanities. The Journal of Arts Management, Law, and Society, 26(2). https://doi.org/10.1080/ 10632921.1996.9942955 Zsolnai, L., & Wilson, D. (2018). Art-based business. Journal of Cleaner Production, 135(1), 1534–1538. https://doi.org/10.1016/j.jclepro.2016.03.056

Chapter 6

Art and Communication

Abstract This chapter is dedicated to the explanation of two main communication activities which, as evidenced by the literature, can benefit the most from an interaction with the art world: advertising and (art) sponsorship. The case study dedicated to the luxury brand Gucci shows how it is possible to rejuvenate and reinforce the power of the brand via the implementation of new and old forms of communication realized in collaboration with artists.

6.1

Art and Communication1

First examples of interactions between art and advertising are already found in the early nineteenth century, when artists such as Henri de Toulouse-Lautrec were recruited for the production of advertising posters that were the forerunners of today’s advertising (Baumgarth, 2018). The contemporary connection between art and advertising continues to have value, if one but think of commercial brands that have made ample use of the power of art to increase their value in the eyes of the public, as in the case of Absolut Vodka, Benetton, Illy Caffè, or Diesel (Comunian, 2008; 2009; Dell’era, 2010; Lehu, 2011; Schmitt & Simonson, 1997). Concerning the activity of (arts) sponsorship, this is undoubtedly the richest in relation to the amount of dedicated analysis. This is due to the fact that the activities of sponsorship have a very large body of prior knowledge, especially through studies devoted to sports sponsorships (Schwaiger, Sarstedt, & Taylor, 2010), while the literature concerned with the artistic area has yet to be as thoroughgoing (Walliser, 2003). It is a fact that investments in art sponsorship will grow as sports sponsorship is next to saturation (Meerabeau et al., 1991; Quester & Thompson, 2001).

1 Sections 6.1, 6.1.1, and 6.1.2 are revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016.

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_6

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Table 6.1 Second line of research: Art and communication Line of research (first and last items published) Authors 33 selected items

Main theoretical contributions

Art and Communication (1988–2018) Borghini, Visconti, Anderson, and Sherry (2010), Brennan, Binney, and Brady (2012), Chong (2000), Daellenbach (2012), Daellenbach, Thirkell, and Zander (2013), Estes, Brotto, and Busacca (2018), Finkel (2010), Frank and Geppert (2004), Hetsroni and Tukachinsky (2005), Hewitt (2000), Hüttl-Maack (2018), LeClair and Gordon (2000), Lee et al. (2015), Lehu (2011), McGuigan and Gilmore (2002), Mermiri (2010), Moon and Kwak (2010), Morbey (2006), O’Hagan and Harvey (2000), Olkkonen and Tuominen (2006, 2008), Peluso, Pino, Amatulli, and Guido (2017), Robson (2015), Roschwalb (1990), Ryan and Fahy (2003), Schwaiger et al. (2010), Sylvestre and Moutinho (2007), Thomas, Pervan, and Nuttall (2009), Thompson (2005), Turgeon and Colbert (1992), Tyrie and Ferguson (2013), Van Niekerk and Conradie (2016), Walliser (2003) The most extensive line of research in art and business. Authors want to examine the added value that the fine arts are able to bring to advertising and sponsorship in terms of perception by the final consumer or in terms of communicative rhetoric. Against the possibility for art to be strongly influenced and manipulated by economic forces, some have predicted that investments in art sponsorship will grow. This is possibly due to the fact that arts meet enterprises’ needs to new and functional forms of communication, and to the necessity of arts organizations to become money-seekers not only oriented to governmental funds.

Source: Table’s form elaborated upon by the present author

The Table 6.1 gives an overview of the authors, articles, and the main thematics concerning this research strand. The following subsections will offer a detailed excursus of the research outputs presented by the authors of this line of research: advertising and sponsorship in connection with the arts.

6.1.1

Art and Advertising

The peculiarity underlying the interrelation between art and advertising is the fact that both can be viewed, in their way, as belonging to the artistic environment. In some cases, the convention seems to be the only thing able to distinguish advertisement from the rest of art, in keeping with the traditional distinction according to which a work by artists belongs to the realm of so-called “high art,” while advertising would belong to the realm of popular culture or “low art.” The critical analysis

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strongly challenges the existence of a distinction between “high art” and “popular art” and is forcefully discussed in the context of aesthetic studies (Heinich & Shapiro, 2012; Shapiro & Heinich, 2012; Shiner, 2012). However this traditional view still seems to be commonly accepted in management studies (Colbert, D’Astous, & Parmentier, 2005a, 2005b; Hagdtvedt & Patrick, 2008a, 2008b). At this stage of the research, the analysis will be focused on the assumption that popular culture, of which advertising is a part, will continue to refer to and include high art in its production as long as so-called “high art” continues to enjoy a position of superiority conventionally recognized. This operation of integration has the main purpose of increasing the value and the effectiveness of the message transmitted from the so-called popular art. Author John Hewitt (2000) sustains that there has been an association between advertising and art for more than a century, particularly with modern art. The connection is so strict, art transformed the advertising by working and playing with it, while advertising gave legitimization to the arts in the fruitful field of consumption (Hewitt, 2000). From the perspective of the companies, Amir Hetsroni and Riva H. Tukachinsky (2005) start from an assumption that is shared by numerous authors, or that art can be used to alter the image of a brand ensuring the transition from the ordinary to the prestigious image. Very often art is used to advertise high-status products, such as private wine collections, hi-fi or products and services that make direct reference to the arts, such as annual subscriptions to the opera or theater, with a dominance of Renaissance, Neoclassical, and Romantic styles (Hetsroni & Tukachinsky, 2005). Five years after the Hetsroni and Tukachinsky article, Stefania Borghini, Luca Massimiliano Visconti, Laurel Anderson and John F. Sherry Jr (2010) examine the implications and similarities discovered between a particular form of contemporary art, street art, and advertising creativity. The authors place particular attention to the potential contribution that creative rhetoric used by street artists could bring to the advertising practice. Basically the authors state that mainstream street culture is capable of bringing a rich vocabulary to advertising: funny pictures, “transfigured pop myths and urban objects or logos” (Borghini et al., 2010: 124). The study conducted by the authors therefore asserts that rhetorical practices used by street art can be employed to increase the significance and social impact of business advertising (Borghini et al., 2010). Also author Jean-Marc Lehu analyzes the use of pictorial artworks by private labels. While there is currently much research being done in the area of cinematographic brand placement as well as brand placement as it pertains to songs or video games, the analysis of brands used by painters does not seem to be as well developed (Lehu, 2011). For the purpose of this research, the analysis carried out by Jean-Marc Lehu is interesting because it shows how the painter, captured in the very act of reproducing a brand on canvas, could introduce an added value to his work and, at the same time, could allow the brand to benefit from such appropriation, afterward. It should, however, be noted that some negative associations for the brand may arise and they may lead to an accusation of art contamination or corruption (Lehu, 2011).

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The possible beneficial effect of the connection between arts and advertising have been empirically analyzed in a recent article by authors Zachary Estes, Luisa Brotto, and Bruno Busacca (2018). The authors tested the potential beneficial effects of art-based initiatives for consumers via three experiments crossing different artworks, commodities products (mineral water, toilet paper, and chocolate), and measures of product evaluation, willingness to buy, and willingness to pay. The results show that art may affect the evaluation and appreciation of products by stimulating emotions in consumers (Estes, et al., 2018). Regarding the kind of art applied, the research by Angelique Van Niekerk and Marthinus Conradie (2016) examines the adoption of art in advertising, and the “transfer associations from artworks, artists, and styles to the advertised brand” (Van Niekerk & Conradie, 2016: 233). Focusing on fine arts the authors focused especially on how the association between the arts and the brand is beneficial in terms of prestigious perceptions, and creative innovation; also exploring the levels of skill necessaries to recognize the bond. On the same track, another recent study conducted by authors Alessandro M. Peluso, Giovanni Pino, Cesare Amatulli, and Gianluigi Guido (2017) demonstrates the impact in terms of modification of the advertised products’ perceived luxuriousness when the advertisements incorporate a recognizable painter style. The same research also explores the moderating roles of desire to signal the consumer social status (Peluso, et al., 2017). Applied in the field of luxury, the experiment already described is presented as an evolution of the art-infusion effect, or the positive spillover effect the art can have on products or brands it is associated with (Hagdtvedt & Patrick, 2008a). The same perspective on art-infusion effect for advertising is shared by authors Jae-Young Moon and Jun-Sik Kwak (2010) who show with their experiment that brand attitude is better stimulated by art-infusion than art-parody for utilitarian products but any impact on purchase intention can be observed. The purchase intention has been tested instead by authors Jieun Lee, Junghyun Kim, and Jinhyun Yu (2015). Their experiment on Korean university students showed that high levels of congruence between product and visual image, and between visual image and self-image favor a stronger purchase intention in consumers compared to low levels of congruence (Lee et al., 2015). A very recent article by Verena Hüttl-Maack (2018) based again on art infusion investigates at least the moderating role of the artistic interest of individuals observing an advertising enriched with fine arts. The experimental study the author managed on 447 consumers via surveys in museums, art exhibitions, and public spaces shows that the art infusion effect occurs for highly art interested individuals only for moderately hedonic and more ambiguous products. In the next section, the analysis of the Art and Communication research strand will continue with a focus on (art) sponsorship, whose main concern is due to the possibility for art to be strongly influenced and manipulated by economic forces.

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Art and Sponsorship

There is currently still no common view in the literature regarding the definition of sponsorship (Cornwell, 2008). Finding an adequate definition for commercial sponsorship therefore seems to be difficult, although there is some consensus in the academic and professional fields about the fact that these forms of donation are distinct from philanthropy (Thompson, 2005). A general consensus has been arrived at regarding Tony Meenaghan’s definition of sponsorship as an involvement of the company in an investment in money or knowledge towards an idea looking for the potential associated with that investment (Meenaghan, 2001, 2013; Meenaghan & Kourovskaia, 2013). This definition reflects the shift from the “gift” mentality to that of an economic partnership between the sponsor and the sponsored organization, bounded by “legal agreements, definitions of proprietary rights and a focus on return-on-investment” (Quester & Thompson, 2001: 34; Meenaghan, 2001, 2013; Meenaghan & Kourovskaia, 2013). Author Derrik Chong (2000) states that successful art organizations, can preserve aesthetic values and, at the same time, recognize and appreciate financial assistance given by governments and businesses as signs of sustainability. Sponsorship, as opposed to philanthropy, does not have the ability to hide behind an aura of disinterested benevolence. The business sponsorship of the arts, in fact, is often covered with a veneer of altruism, but the strategies and policies within corporate sponsors are strictly guided by the desire to create a positive corporate image, while simultaneously calling for media attention, the public’s interest and increasing product sales in the long term (Bucher, 1989). Different authors tried to structure the value creation that can be obtained by companies by involving in arts sponsorship, as author Anna Tyrie and Shelagh Ferguson (2013) did through the lenses of Social Exchange Theory literature. Their analysis state that companies miss a clear understanding of the value creation process and especially of its components as experiences, expectations, motivations and perceptions (Tyrie & Ferguson, 2013). Considering previous researches prevalently by Meenaghan (1991; 2001) authors Linda Brennan, Wayne Binney, and Erica Brady (2012) state that through a process of sponsorship a sponsor can expect to achieve diverse objectives as the involvement of the company towards target communities, the entertainement of real or potential customers as well as media exposure resulting in positive effects in terms of image and sales targets (Brennan et al., 2012; Comunian, 2008; Meenaghan, 1991; 2001, 2013). These objectives can be added to those related to the increase in corporate responsibility and company goodwill in support of the relevant communities, as well as to stimulating the public’s perception of a company in a position to “give back” something to the society, in this case by supporting the arts (O’Hagan & Harvey, 2000; Quester & Thompson, 2001). The sponsee (arts organizations) should know what benefits they might be able to extend to sponsors, as well as how best to present them to the interested managers (Brennan et al., 2012; Thompson, 2005). One of the key issues for academics and professionals seems to be the need to clearly and precisely distinguish between philanthropy and sponsorship for a given

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enterprise. What seems clear is the fact that sponsorship is a more structured relationship than philanthropy, mainly due to the fact that it includes marketing activities in the support it wagers. It has often been noted that advertising and sponsorship are considered paired elements in an integrated communication strategy (Brennan et al., 2012; Cornwell, 2008; Cornwell, Weeks, & Roy, 2005; Walliser, 2003). It is therefore possible to say that philanthropy is commonly seen as a donation, while sponsorship is often seen as an important investment in communication (Porter & Kramer, 2006). In this regard, very interesting results can be found in the article by Bettina Cornwell and Isabelle Maignan (1998), which state that research on sponsorship conceived as a means of leveraging communication is closely linked to research on the reputation and image of the brand. Therefore, it is clear that sponsorships attempt to persuade the consumer indirectly, through the power of the associations that link the brand sponsor to the sponsee. For this reason, Cornwell and Maignan (1998) argue that the analysis of brand value can be an ideal framework for studying the effects of the sponsor–sponsee relationship. Susanne A. Roschwalb (1990) also agrees that the approach of the sponsor companies has always been aimed at marketing objectives, even if in the form of donations. These marketing goals essentially translate into sales increases, employee and consumer attraction, and new markets development. Sponsorship, according to the author, is therefore a chief addition to the various means of supporting the arts, such as direct donation or philanthropy (Roschwalb, 1990). The power of sponsorship, when compared with other modes of support, however, lies mainly in its communicability (Cornwell et al., 2005; Cornwell & Maignan, 1998; Meenaghan, 2001). Concerning the effects that sponsorship has on the company, Bjorn Walliser (2003) argues that there has been a transition from a managerial perspective to a consumer-based perspective in so far as “studies are no longer limited to measuring the values of fame as a result of a given sponsorship event, but rather, increasingly, studies examine the internal process that is activated in the minds of consumers during or following a sponsorship” (our translation from Walliser, 2003: 87). Even in the work of Walliser, sponsorship is key important mainly due to the strengthening of the image of the sponsor. In this regard, another very essential article is the one by Ravi Pappu and Bettina Cornwell (2014) who claim that choosing sponsorship activities turns out to be crucial for enterprises in ensuring the success of business objectives, by increasing awareness and brand image. The article introduces the two concepts of “similarity and fit.” Fit between a sponsor and a sponsee refers to the logic a company chose to abide by in sponsoring certain activities in relation to the degree with which the association specific to its brand is comparable to those of the sponsee (Pappu & Cornwell, 2014). Similarity concerns analogies and differences between sponsor and sponsee. If there is high similarity but low fit between the two parties, one runs the risk that the public might interpret the report as an attempt to take advantage of the charitable organization (or art in our case) in order to boost the image of the corporate brand (Pappu & Cornwell, 2014). Managers must consider the right balance between fit and similarity before involving in a sponsorship.

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Authors Björn Frank and Kurt Geppert (2004) question this assertion according to which sponsorship on behalf of great cultural institutions is viewed as being more profitable when compared with sponsorship targeted at smaller cultural institutions. If, in fact, sponsor companies were interested not so much in the visibility of the sponsored cultural institution, but in the media coverage of the sponsored event, then the authors argue that there would be no reason why companies should not sponsor even small institutions, perhaps even local ones, which could provide a good response and good media coverage concerning their community of reference (Frank & Geppert, 2004). Substantially, the activity of sponsorship can be conceived as an exchange between donor and recipient; however, it can also be interpreted as a relationship of mutual aid in which both parties can benefit. Beverley Thompson (2005) provides an interesting analytical framework from this perspective that allows reading the activities of sponsorship from a relational point of view, in particular within the framework of relationship marketing.2 The author states that a marketing orientation seems to be needed for both the sponsor and the sponsee, therefore, for both sides of the relationship. The sponsorship relationship can be distributed along a hypothetical continuum in which, on the one side, there is a relationship that is very similar to philanthropy in which the two parties are limited to a donor–recipient connection. The other side of the continuum is rather an activity that sponsorship provides in terms of a joint sharing of resources between the two entities (Thompson, 2005). The author also claims that various possible combinations exist between the two sides, but generally relationships of sponsorship are moving from an activity of simple donation to a mutual exchange of expertise and resources between concerned parties (McNicholas, 2004; Thompson, 2005). Usually, what drives the relationship of sponsorship from the arena of philanthropy towards far more commercial forms are the advertising and promotional expenses dedicated to sponsorship, all of which are usually borne by the sponsor in order to ensure that the widest possible audience is informed about the relationship (Quester & Thompson, 2001). The framework of relationship marketing moves the analysis of sponsorship from a donor–recipient relationship to a relationship between equals. Tina Mermiri (2010) also agrees with the fact that relationship between arts and sponsor companies tend to be structured and long-lasting, with companies that prefer to reduce their donation to the sponsee rather than terminating the relationship. Usually these forms of partnership are possible thanks to the efforts of dedicated people. Some authors focus on the need for managers of nongovernmental organizations to direct their attention to corporate staff who manages the creation of artistic relationships that do not necessarily coincide with the higher level management 2

The author recasts the relationship of sponsorship within the paradigm of marketing relationship strategy. This line of study which mainly connects the IMP group (Håkansson & Snehota, 1995), states that transactions between the two entities are not isolated events but part of complex business networks demanding a series of skills and abilities to be managed (Ritter, Wilkinson, & Johnston, 2004).

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(Behnke, 2007). Kate Daellenbach (2012), as well as Daellenbach et al. (2013), presented a relevant study that investigates the role of individual influence underlying the decision to engage in partnerships with the arts. The authors identify the figure of “advocate” (etymologically from ad-vocare, the one who speaks on behalf of another) stating that while in the past personal motivations of the CEO or the board members seemed to be fundamental in influencing philanthropic decisions, presently donations from businesses would seem to have become strategy-oriented. Since this is a strategic decision, the authors claim that more often than not, business individuals involved in sponsorship decisions do not hold to formal roles of management, but rather, they are employees who are passionate about art or, in any case, who prove to have a good knowledge of the sector. These are precisely the individuals with which the managers of the art organizations must interact in creating profitable and long-lasting sponsorship relationships (Daellenbach, 2012; Daellenbach, et al., 2013). Normand Turgeon and François Colbert (1992) confirm the need for sponsored organizations to master the art sponsorship market in order to participate in an active relationship (Thompson, 2005). In particular, the authors argue that arts managers should know the dynamics of the arts at the root of corporate decisions about whether or not to sponsor an event or organization. Article by Mark S. LeClair and Kelly Gordon (2000) analyzes instead the way in which the reasons in support of corporate donations vary among different categories of sponsees. Results show that corporate donations towards artistic/cultural activities are often related to the costs of communication and advertising, while donations to civic or humanitarian organizations do not meet with the same constraints. Basically, the authors demonstrate through their work that corporate donations to the arts are influenced by factors other than those underlying other types of donations. The results confirm what we already assumed, i.e., with respect to the main industries involved in donations to the arts, the oil industry, the printing, advertising, and bank industry rank first. Rather considerable donations from the oil companies coincide with an attempt to counter their persistent image problem. For printing, advertising businesses and banks the decision to project the image of an enlightened enterprise is voluntary (LeClair & Gordon, 2000). Even the work of John O’Hagan and Denice Harvey (2000) distinguishes between promoting the name and promoting the image, asserting that many companies whose names are well known to the public involved themselves in sponsorships mainly to boost brand image—for example, Carlsberg and BMW—while other lesser-known companies used their sponsorship to promote the very name of the company. Media coverage is seen as one of the major opportunities offered by sponsorship of an art event and can be directly linked to the objective of image promotion (O’Hagan & Harvey, 2000). Another important result of the research is that personal contacts are a determining factor in the selection of an artistic sponsorship. This suggests that the consumption of art made by personnel managers or owners can be “a significant factor in explaining some forms of artistic sponsorship” together with the cohesion of the supply chain and income-seeking (O’Hagan & Harvey, 2000: 219).

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Jim Mcguigan and Abigail Gilmore (2002) investigate the role of sponsorship in the opening of the London Millennium Dome, a space dedicated to the exhibition of artworks and artistic performances in the UK. The authors presume that an aggressive position by the press against the sponsors involved in business supporting the arts actually did not correspond to the sentiment of common people, deemed to be more open to these forms of support for the arts for commercial purposes than the press. Staying in the UK, the article by Rebecca Finkel (2010) demonstrates that the quality of the arts is not necessarily compromised by commercial funds. For example, the direction of the glamorous Henley Festival manages the revenues from sponsors3 to maintain high standards in the performing arts, thus remaining attractive to a highly informed, well-heeled, and cultured audience. In addition, many artists are willing to accept corporate funds without the risk that their production is affected by the intervention of the company. Sara R. Thomas, Simon Pervan, and Peter Nuttal (2009) come to the same conclusion through the implementation of case studies focused on sponsorship in support of British theater productions. A dissenting voice is that of Mary Leigh Morbey (2006) who cites the example of a failed sponsorship. The author devotes her analysis to the relationship between the Russian State Museum Hermitage and the multinational IBM which sponsored the creation of the website for the cultural institution; the relationship between IBM and the Hermitage suffered from the convergence and tension between the philanthropic and profit-oriented objectives of IBM (Morbey, 2006). Deirdre Robson (2015) states that the first examples of Corporate art date back in the early to mid-1960s, but it was only in the 1980s and 1990s that the idea of Corporate Patronage or sponsorship gained importance. The article examines the case study of Pepsi Cola’s Portrait of America “as a means of exploring why the idea of Big Business as a patron of fine artists did not take root in the 1940s(...) the use of art to add a gloss of culture to company images went back to the genesis of mass media advertising in the early twentieth century, but become better established in 1930 with its use by a number of business” (Robson, 2015: 329). But the resistance to the Art and Business relationship does not come exclusively from the field of the arts. Both the Art and Business communities tend to exist in a certain basic tension, probably due to a misunderstanding concerning the activities of the two parties (Tweedy, 1991); one way to understand the business value of contemporary art might then be to encourage the private sector to consider artistic residencies as the cases of British Petroleum,4 British Gas, and British Steel (Tweedy, 1991). Manfred Schwaiger, Marko Sarstedt, and Charles R. Taylor (2010) therefore focus on the effects of sponsorship in building the company’s reputation, particularly focusing on highbrow arts (art exhibitions and museums) which would provide a

3

The Henley Festival in partnership with major sponsors and partners, see http://www.henleyfestival.co.uk/, (access April 04, 2020). 4 i.e. British Petroleum art award https://www.npg.org.uk/whatson/bp-portrait-award-2020/exhibi tion/ (last accessed April 04, 2020).

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long-term increase of the corporate value. The authors carried out an experimental study of corporate reputation for 10 major companies including BMW Group, Audi, Daimler Chrysler, Montblanc, Siemens, and Volkswagen (Schwaiger et al., 2010). These activities require a parallel effort to publicize the relationship for a certain period of time, as other authors have already shown it (Quester & Thompson, 2001). The same view seems to be shared by Carl M. Sylvestre and Luis Moutinho (2007), who argue that the decision to use communication in support of sponsorship is primarily related to its objectives. The major efforts in this direction are made if the sponsorship aims at increasing the value of the brand or corporate hospitality.5 If the name of a company is associated with an art/cultural program, business can take advantage from the prestige and the reasonance associated with it (Alexander, 1996; Sylvestre & Moutinho, 2007). Investing in art is then clearly a strategy for building cultural infrastructure favorable to the company and able to reinforce its image. It is necessary, besides, to consider how to promote the relationship and how it will be judged by the audience. In a positive case, the sponsorship may give excellent results in terms of visibility; in a negative case, however, a dangerous backlash could lead to unfavorable image (Sylvestre & Moutinho, 2007). The last article of this literature strand by authors Rami Olkkonen and Pekka Tuominen (2006) concentrates on good cultural-sponsorship relationship which can be assured by marketing professionals balancing between the business and the arts community. Their conclusion follows the empirical study which analyze a three-year cultural-sponsorship between a business sponsor and a sponsored museum. Two years later the two authors propose a similar analysis highlighting the possible failures that can be faced in interorganizational relationships between art and business (Olkkonen & Tuominen, 2006; 2008). After having highlighted analogies and differences between the two main forms of communication that can be managed in connection with the arts, the next paragraph will be focused on Gucci, as a great example of a successful implication of visual arts for innovative communication activities.

6.2

Case Study: Gucci

Guccio Gucci S.p.A., better known simply as Gucci, is a leading global luxury brand founded as a family business in Florence in 1921 (Kering, 2020). Guccio Gucci decided to open a company specializing in leather products, with a small shop in the city center selling accessories for horse-riding dedicated to the Tuscan nobility; this also explains the birth of Gucci emblazoned symbol: the clamp (Cameramoda, 2012).

5 The entertaining of clients by companies in order to promote business, especially at sporting or other public events (oxforddictionaries.com, last accessed August 23, 2015).

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Through the years, the leather goods production of Gucci became appreciated by an increasingly large clientele, both in Italy and internationally. During 1950s, the success of Gucci reached the USA with the opening of its first American store in New York in 1953 that allowed the brand to seduce divas like Liz Taylor, Audrey Hepburn, and Jackie Kennedy (Cameramoda, 2012; Women’s Wear Daily, 2020). The following decades saw a series of successes for the Florentine brand, like the launch of its first prêt à porter collection during 1970s, or the organization of the first runaway in 1981 in Florence (Women’s Wear Daily, 2020). From a managerial point of view, the brand became a stock company in 1982 under the directives of Maurizio Gucci, grandson of Guccio. This transformation allowed the entry in 1987 of the investment company Investcorp in the corporate structure, turned into a total control during the 1990s (Cameramoda, 2012). At the end of the 1990s, the brand was linked to the Pinault-Printemps-Redoute group (known today as Kering); Gucci is still today the flagship brand of the luxury conglomerate controlled by the French Family Pinault (Kering, 2020). The years 1994 and 1995 saw the arrival of two important personalities in the management of Gucci, respectively Tom Ford and Domenico De Sole. This former acted as CEO of the company, listed Gucci on the stock exchange, and introduced a series of structural changes in the operations of the company (Cameramoda, 2012; Women’s Wear Daily, 2020). Tom Ford was appointed creative director and with his taste transformed the image of Gucci in the sophisticated and commercial brand that we still know today (Women’s Wear Daily, 2020). After the departure of Tom Ford in 2004, Gucci’s Creative Director Frida Giannini was named the company’s creative guide. She infuses her contemporary style into her work, enabling Gucci to be recognized as one of the most innovative luxury brands in the world (Clark & Friedman, 2014). The appointment of current creative director Alessandro Michele in 2015 marked a new turning point in the strategy and aesthetics of the Gucci brand, reinforcing its leadership in the list of brands belonging to the Kering group: Gucci represented in 2019 the 63% of Kering turnover (a total of 15,383 M€) (Kering, 2020). Thanks to its extraordinary growth of the last years, Gucci is also listed among the brands that grew the most in 2019 according to the “Top Growing Brands 2019” (Interbrand, 2019). At the center of this success is the careful use of communication techniques combined with the wise artistic influences suggested by Alessandro Michele. The work of the creative director started with the updating of the famous double G logo to make it desirable to a younger audience (Royce-Greensill, 2016). The eclectic creative director of Gucci revolutionized the communication policy of the company using traditional media but boosting the presence of Gucci in digital media at the same time. Finally, Alessandro Michele integrated the entire image of the brand with the world of art. Collaborations with established and emerging artists and sponsorships for exhibitions and cultural events have been consolidated over the years and have become an integral part of the new Gucci’s aesthetics and policy (Kering, 2018).

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Gucci and the Arts

The current artistic director of Gucci, Alessandro Michele, is an art passionate, with the habit of showing and scouting artists through its Instagram profile (Bonacic, 2020). The sophisticated interest of Alessandro Michele in the arts reverberates on the Gucci world. It is via the brand financial power that the artistic director can support the arts by sponsoring exhibitions, involving artists in the creative production, editing art books, or financing special projects. All of these activities are communicated to the public, with the effect of increasing the popularity of the brand, assuring it a stylish image given by the arts, at the same time. Some recent examples of Gucci participation in support of the arts can be the sponsoring of the Italian Pavilion at the Venice Biennale, the support for exhibitions at the Maxxi Museum in Rome, or the National Portrait Gallery in London (Bonacic, 2020). Together with the sponsoring activities already described, Alessandro Michele pushed forward the interlink between Gucci and the arts realizing special projects having a sacred impact in the art field, like the recent project The Artist is Present, realized with Italian artist Maurizio Cattelan as a “manifesto of modern creativity” (Bonacic, 2020). This exhibition was produced in the Yuz Museum in Shanghai and brought together more than 30 international artists called to express their vision of the concept of imitation (David, 2018; Choi, 2018). The Maison celebrated the opening of The Artist Is Present with a new Art Wall in Shanghai, which demonstrated the intelligent use of communication tools enriched by the arts to attract new markets. The Shanghai Art Wall is one of the Gucci Art Walls scattered around the world. These are large wall spaces that Gucci decorates for certain periods with the creations of an artist. The Gucci Art Walls are present in fashion centers like in Lafayette Street, in the SoHo neighborhood in New York, in Largo la Foppa in Milan, just off the famous Brick Lane of East London, but even in Hong Kong, Shanghai, and Taipei (Goodlife, 2018). The idea of building a solid international community via the discovery of places that are part of the Gucci world led Alessandro Michele to conceive the Gucci Places. Via a mobile application, it is possible to view a detailed guide of the sites that have been important in the development of the history and the aesthetics of the brand. The Gucci locations are diversified and located worldwide in areas such as the historic English estate of Chatsworth in the Derbyshire, England, and the Castello di Sonnino on the Chianti Hills in Tuscany, Italy (Gucci, 2020a). An important Gucci Place is the Boboli Gardens, in Florence. The Boboli Spring project is an example of how Gucci participates in patronage activities in support of various cultural initiatives. With this project Gucci pays tribute to Florence, the city where the brand was founded; the Maison launched a cultural project called Primavera di Boboli, which was promoted by the Ministry of Heritage and Cultural Activities of Italy and sponsored by the Municipality of Florence. Like a real patron of modern times, starting in 2017, Gucci has been committed to providing 2 million euros to the Uffizi

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Galleries for the restoration and enhancement of the botanical heritage of the Boboli Gardens (Il Sole 24 Ore, 2017). Another iconic Gucci Place is the Gucci Garden, which was inaugurated in January 2018 at the heart of Palazzo Della Mercanzia, a historical Florentine palace dated 1337 located in Piazza Della Signoria in Florence (Zargani, 2018; Gucci, 2020b). Gucci took the concept of the conventional museum and reinvented it as a creative space in which the aesthetics and the philosophy of the Maison can be expressed. Conceived by Creative Director Alessandro Michele, this new space hosts different realities that express the spirit of the Gucci brand: the Gucci Garden Boutique, the Gucci Osteria Restaurant run by Michelin-starred chef Massimo Bottura, and the Gucci Garden Galleria exhibition area (Gucci, 2020b). The Galleria is an experimental and creative gallery laboratory composed of six rooms— Guccification, Paraphernalia, Cosmorama, De rerum natura, Cinema da Camera, and Ephemera—that tell the history of Gucci from 1921 until today. The rooms showcase the creations of young emerging talents alongside the creations of Tom Ford and the floral works of Frida Giannini. Gucci Garden is a real laboratory place, redesigned to express the tradition, aesthetics, and philosophy as part of the constant evolution of the Maison (Zargani, 2018; Gucci, 2020b). The advantages that derive from the collaboration between Gucci and the art world are always double-sided. On the one hand, the fashion house finds inspiration for the creation of its collections and increases its aura of exclusivity for the consumers. On the other hand, the art institutions and the artists have the possibility of receiving funds for their projects, expanding their visibility worldwide. The relationships between Gucci and various artists that collaborate with the Maison usually go further the simple realization of a capsule collection. A famous example can be the collaboration with the artist Unskilled Worker scouted on Instagram by Alessandro Michele in 2015, then invited to participate in an exhibition in Shanghai supported by the brand named “No Longer/Not Yet,” culminated with the realization of a capsule collection. As works of art, parts of the collections are made in limited editions, available online only (Vogue, 2017). The interesting thing is that any collaboration with an artist or any support for art is widely communicated through conventional or non-conventional media—an example is that of the Art Wall—but it is through the web that Alessandro Michele has been able to make Gucci communication innovative and close to Gucci new consumers, the millennials. Social networks, in particular those focused on visual culture (e.g., Instagram and Snapchat), are the means used to carry out art projects or involve artists. The first social initiative launched by Alessandro Michele on Instagram in 2015 was #GucciGram. The idea of this initiative is to encourage all illustrators and creators of images on Instagram to interpret the Maison’s new prints. The works are then made available on Instagram, under the hashtag #GucciGram and on a dedicated website (Gucci, 2020c; Yotka, 2015). On this website, it is possible to find “commissioned” and “noncommissioned” works. Another Instagram project #24HoursAce was proposed on the launch of the Ace sneakers for the Autumn–Winter 2016 collection, as with the previous project, the

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focus was global. Artists from all over the world were invited to use Ace sneakers as a starting point for their personal expression. Each artist had the task of shooting a 60 second short film, the theme of which was the reinterpretation of the Ace model. The result was a series of colorful and dynamic videos published on the Maison’s Instagram and Snapchat account (Gucci, 2020d; Tan, 2016). With this project, Alessandro Michele wanted to exploit the full potential of Snapchat, and apparently the results were interesting as other projects were organized by using this platform, as the 2019 art party with Snapchat organized by the brand during the famous fair Art Basel Miami (Theartgorgeous, 2019). Another interesting project proposed by Gucci involving art and the digital world is the @guccibeauty account, launched in 2018. The aim is to express the vision of the world of beauty through the history of art by exploring different styles, origins, and cultures from all over the world. Through a collection of works of art, Alessandro Michele wants to show that it is not possible to give a rigorous definition of beauty and how this ideal has evolved in different eras and across cultures (Gucci, 2020e). The forty-five published works are exhibited in the most important museums, galleries, and private collections in the world, from the Metropolitan Museum of Art in New York to the Uffizi Gallery in Florence, to the Tate Modern in London, and to the Musée des Beaux-Arts in Reims. Each artwork is accompanied by a caption written by a group of art writers, art critics, and journalists with different backgrounds and origins. Alongside the works of art, the account also shares the images of the Maison’s new beauty products, new fragrances, looks from fashion shows, and special collaborations with artists and new talents (Gucci, 2020e). With this last project, Gucci created an intelligent mix of art and socially responsible communication dedicated to renovating the idea of beauty in our contemporary society. These themes seem to be quite attractive for old and new consumers, which can be achieved through several integrated communication channels, offline and online.

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Chapter 7

Art and Cross-Cultural Business

Abstract Art can be a valuable way for companies to get in touch with foreign cultures. Collaborate with international artists and promote artworks from different countries are the keys to gain close relationships with potential foreign markets. Every country otherwise has developed through time its perfect equilibrium between public and private support to arts and culture. It is exactly this equilibrium that companies must understand to build up their foreign strategies based on the arts. The case study on the French luxury company Hermès presented at the end of this chapter will show how this smart strategy can be applied in practice.

7.1

Art and Cross-Cultural Business1

The subcategory of research provides a comparative study between different countries that have developed interesting forms of relationships between Art and Business. Each country has developed over time the ideal type of artistic support, built based on cultural models and political organizations that characterize it. In most European countries, the state has continued to play a major role in supporting the arts. Consequently, cultural policies aimed at stemming donations made by businesses were promulgated and this explains why even today public opinion in these countries tends to be highly critical of the interference of enterprises in the artistic domain (Morel, 2005; Sauvanet, 1999). Since the early 2000s, however, the situation has begun to change, with European states increasingly tending toward an opening up of the private sector. This is proven by cultural policies implemented in France, with the Law on patronage in 2003, and with the Italian law called Art Bonus promulgated in 2014 (Art Bonus, 2019; Legifrance, 2019). These cultural policies are primarily oriented towards ensuring

1 Section 7.1 is revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016.

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_7

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Table 7.1 Fourth line of research: art and cross-cultural business Line of research 4 (first and last items published) Authors 19 selected items

Main theoretical contributions

Art and cross-cultural business (1996–2012) Bucher (1989), Comunian (2008, 2009), Cwi and Strausbaugh (1988), Durand, De Gouveia, and Berman (1996), Kawashima (2012), Killacky (1998), Kirchberg (1995), Kressner Cobb (1996), McIsaac (2007), Morel (2005), Mulcahy (1999), Reiss (1989), Sauvanet (1999), Scaltsa (1992), Stenstrom (2008), Tweedy (1991), Zolberg (2000), and Zorn and Koidl (1991) This strand offers a comparative study between different nonEnglish-speaking countries that have developed interesting forms of relationships between art and business. Each country has developed over time the ideal type of artistic support, built on the basis of cultural models and political organizations that characterize it.

Source: Table’s form elaborated upon by the present author

favorable fiscal conditions to those companies that decide to invest or support the arts, without promoting or implementing a new Art and Business culture. The activities of interconnection between Art and Business reached Europe during the 1970s and 1980s, together with the opening of the European headquarters of American enterprises. Some European companies have quickly proven to be very reactive. In fact, it was during those years that we witnessed the formation of the main business art collections, mainly in Germany, Belgium, France, and the Netherlands (Behnke, 2007; Kottasz, Bennett, Savani, Mousley, & Ali-Choudhury, 2007, 2008; Lindenberg & Oosterlinck, 2011). These philanthropic and sponsoring activities linked to the arts, however, have always been considered more refined forms of communication rather than part of an integrated strategy of the enterprise (Comunian, 2008). A unique, but not monolithic, vision by the state could offer adequate support to art, ensuring adequate participation of private entities and civil society in their development (McIsaac, 2007). But while in English-speaking countries the fact that businesses and individuals give back part of their wealth to show gratitude to the community in which they were raised is well accepted, the same cannot be said for European countries. European culture tends to perceive the interference of industry in art as something dangerous and corrupted and capable of standardizing the uniqueness of the artistic and cultural sectors (Sauvanet, 1999). Public cultural policies should be planned to avoid this negative effect because erecting barriers at the intersection between Art and Business seems to become increasingly difficult. Considering the growing importance of symbolic capital in contemporary production, the need for businesses to build more and more tightly-woven relationships with the cultural sphere, artists or the arts, in countries usually not favorable to this kind of relationship is not surprising (Dell’era, 2010; Schmitt & Simonson, 1997). Articles, authors and research themes belonging to this line of research are listed on the (Table 7.1).

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Ford Foundation and its allies have been the first enterprises that have revolutionized American support for the arts, by increasing institutional philanthropy in favor of culture and giving greater impetus to the advancement of the entire field of art in the USA (Wyszomirski, 1996). Other industrial pioneers who have shown interest in the arts were AT&T, Hallmark Cards, Texaco, Chase Manhattan, Corning Glass, and Philip Morris (Kressner Cobb, 1996). As stated by author Alvin Reiss (1989) Art and Business relationship grew incrementally thanks to the formation of national organizations which acted as a bridge between business and the arts; not unlike the Business Committee for the Arts and the Art & Business Council both of which structured their business promotional support for the arts by inviting business professionals to participate in the activities of cultural organizations (Reiss, 1989). Is evident how in the USA support for the arts comes from a combination of private sources (corporate, foundations, individual donors, and users), and this is very different from Europe where support for the arts stems primarily from government sources (Zolberg, 2000). Author, Vera Zolberg (2000: 10) describes how the USA approach to the arts is far from being solely commercial as private funds, and always look for “national prestige, social standing of institutions, much of which derive from the idea of art for its own sake”. As privatization of arts in Europe and other parts of the globe is something that is happening right now, scholars and practitioners must consider both strengths and weaknesses of this strategy (Zolberg, 2000). Relationships developed between Art and Business seem in fact to suffer from a fundamental weakness due to the existing prejudices between the two parties (Olkkonen & Tuominen, 2006). Despite criticism of enterprises’ operations in the field of arts, the relationship between the two parties is currently growing both in numbers and in strategic significance not just in English-speaking countries, but even in other territories. Kevin V. Mulcahy (1999) presents a study on the cultural patronage of the USA, and on the assumption that the country is a unique cultural model for the creation of public policies through its administrative pluralism. A comparison between USA and other states is difficult because in the USA support for the arts tends to be, as always, pluralistic and mixed while for example in Europe cultural activities are typically supported by the central government, with limited participation of private philanthropy or nonprofit organizations. Therefore, the USA seems to support the arts primarily by means of private entities, with the public sector acting primarily at the local level (Mulcahy, 1999). Local support for the arts tends anyway to disfavor rural areas, as stated by Volker Kirchberg (1995), as public (but also private) funds tends to be higher in metropolitan areas where the economy is based more on the service sector, the population is better educated and participative in the sphere of the arts (Bourdieu, 1984). A completely privatized cultural model could work to the detriment of the aesthetic diversity and accessibility of the arts, given that they would be too tied to market-driven dynamics (Bourdieu & Haacke, 1995). In a mixed supporting system, however, public art institutions could feed groups and cultural activities that would

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hypothetically remain outside market forces, but would instead propose a varied cultural offer representative of its society (Mulcahy, 1999). In the decades to follow, a mixed support for the arts which would increasingly be oriented towards business sponsorships versus business benefits was extended to countries other than the USA. For example, Canada arts support is somewhat curious in that it seems to be positioned midway between American and European realities. The article by David Cwi and John Strausbaugh (1988) comparing some selected art institutions located in Canada and the USA. Canadian institutions seem to be even more dependent on government support than US institutions; despite this fact, however, what is interesting is that corporate sponsorship represents a large percentage of all the private sector support in Canada, while in the US private personal donations appear to be dominant. Canadians’ art administrators suggest that a reorientation of the work of government relative to programs in support of the arts and culture, along with changes in tax policies, could support the creation of a better climate for private support of the arts while also providing an interesting development of the sector (Cwi & Strausbaugh, 1988). Matoula Scaltsa (1992) confirms that even in the UK art sponsorship is one of the main instruments for the support of the entire sector. The author claims that the very notion of art for art’s sake would appear to be mainly ideological. Each artist cannot ignore that their apparent artistic freedom derives from an organized system of patrons, donors, philanthropists but also collectors, gallery owners, sponsors in addition to public sources of support for the arts. Actually, the idea that support by an external party somehow compromises the final artwork can hardly be said to occur with regularity, even though obvious risks exist and should be controlled. At this point, the author calls into question the role of the state held to be responsible for the social and cultural policies that should ensure a social situation in which the different forms of support can come together and provide support for the arts, thereby avoiding inequalities and promoting those forms of art generally not favored by private sources (Scaltsa, 1992). Also for Colin Tweedy (1991), sponsorship for the arts and the role of business in the arts increasingly tend toward a kind of partnership that is a mix of government and private funds. Tweedy claims that the experts should encourage journalists and critics to support the companies that choose to sustain the arts, as firms need investment returns, brand recognition, goodwill from the community of reference, rather than criticism built on ideological grounds that often surrounds the sponsorship activities implemented by companies. The key issue is the creation of national associations to support the relationship between Art and Business, as the ADMICAL in France (mainly oriented toward the support of philanthropy), the Association on Behalf of Business Sponsorship for the Arts (ABSA) in England, the ABAF (Australia Business Arts Foundations) in Australia, and the Projekt Borse in Austria (Tweedy, 1991). For example, the Projekt Borse was presented in 1988 by the Austrian Government in order to take the necessary actions required to stimulate communication between commerce and culture (Bucher, 1989). The article by Victor Bucher exactly describes the situation in Austria in the late 1980s, when the reduction of the budget devoted to the arts by the state suffered a substantial decrease

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and paved the way for the participation of enterprises in this area. The main concern regarding the increasing involvement of private companies in artistic activities is the possibility of a consolidation of popular art which is usually appreciated by the general public. Secondly, there is a concern that private money could be channeled to the main art institutions which would be able to ensure visibility to sponsors with the consequent suffering of the smaller, mainly local institutions (Kressner Cobb, 1996). What is clear from this excursus is that companies are gaining a more prominent role in the cultural sector because they understand that art can be a valuable tool in achieving their goals. One of the main objectives to be pursued in undertaking a relationship with the arts is the creation of a positive corporate image to be structured through a behavior considered socially responsible. No wonder then that the tendency to establish increasingly stringent relationships between Art and Business has materialized through the transition from a philanthropic activity to a relationship of sponsorship. With this relational modality, in fact, companies’ sponsors openly await a return on investment with the arts in terms of visibility and image, while philanthropy still appears to be more driven by altruistic motives (Moir & Taffler, 2004). Author Nina Kressner Cobb (1996) claims that America seems to have a complex structure in which national private and public donors are able to reinforce each other. While the private sector supports the arts and cultural activities that best meet its needs for communication and image, the public sector must commit to bestow funds to those art organizations that tend to be excluded from the interest of private entities (Kressner Cobb, 1996). Two years after Nina Kressner Cobb’s paper, author John R. Killacky (1998) presented a contradictory analysis regarding support for the arts from the public domain. Since the early 1990s, public associations created in order to support the arts have been downsizing their business allocation funds; to continue to invest in the future through research and artistic production, cultural and arts organizations should therefore find alternative means of financing their activities as through venture capital forms. The willingness to seek alternative sources of public funding still seems to be an activity that affects most cultural organizations and is not an exclusively North American phenomenon. In Germany, authors Elmar Zorn and Roman Koidl (1991) suggest the creation of a third institution capable of coordinating the contacts between nonprofit organizations and possible business sponsors, a “sort of cultural marketing company, whose shareholders are, on the one hand, cultural organizations such as museums and theaters and, on the other hand, sponsors like industrial firms and foundations” (Zorn & Koidl, 1991: 156). Article by José Carlos Durand, Maria Alice de Gouveia, and Graça Berman (1996) addresses the issue of support for the arts in Brazil, with a focus on sponsorship and cultural tax incentives promoted by the government. The number of companies involved in supporting the arts has grown considerably, primarily among large private or public banks, oil companies, companies producing tobacco, alcohol, or construction firms. Consequently, even in Brazil, the authors argue that

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public cultural agents can no longer ignore the private companies that are pushing to enter into the field of arts. Something seems to have also changed in Europe, as confirmed by the study by Nathalie Sauvanet (1999) which introduces an analysis of Art and Business in France. The author states that, after an initial period of growth during the 1980s, the relationship between Art and Business in France seemed to have reached a situation of relative stability in the late 1990s. This stability was mainly because companies, looking for a return in terms of the image in their relationship with the arts, tended to actively seek the cultural or artistic organizations that were best able to help them achieve their objectives. The effort applied in the search for a useful counterpart in order to achieve a specific purpose often resulted in long-term relationships between businesses and arts organizations. Author has pointed out that a favorable tax regime could be a useful support for the establishment of relations between Art and Business, although not the only one. These tax benefits would later be legitimized in the law issued on August 1, 2003, that is, the Law on cultural patronage in France whose assessment is the basis of the article by Catherine Morel (2005). According to this author, the law tends to favor those companies that are already interested in supporting art and culture, while not acting as a stimulus for the entry of newcomers. Tax exemption to support activities in the arts is not sufficient to ensure that these activities take root in France. What is required, according to the author, is a strong legitimacy of the relationship between Art and Business (Morel, 2005). Moving instead to Germany, the article by Peter M. McIsaac (2007) proposes an approach to the cultural and artistic issue, virtually opposite to that of the USA. As shown during the analysis of the previous subcategories, the artistic support system in the USA has proven to be valid also, most especially due to the variety of actors that take part in it (Mulcahy, 1999; Zolberg, 2000). Germany seems to have taken a reverse direction, according to the author. The new line for governmental cultural policies has therefore placed particular emphasis on the need for unique rules, predominantly national but supported by parallel public–private partnerships (McIsaac, 2007). Remaining in Northern Europe, author Emma Stenstrom (2008) addresses the issue of Art and Business development in Sweden. She shows a split between the will of the cultural and artistic sphere and that of the political one. While artists and cultural organizations have gladly accepted to be perceived as an economic sector, thus following the trend observed in other European countries, in Sweden no cultural policy has been put forth to encourage this behavior (Comunian, 2008, 2009; Morel, 2005; Sauvanet, 1999). The author states that the Swedish approach toward the interaction between Art and Business must be driven towards a common goal that is not overtly commercial, as the “revitalization of a community”, in order to receive public support (Stenstrom, 2008: 31). Roberta Comunian (2008, 2009), instead, analyzes the Italian situation through two articles on business investment in art. Based on the work of Michael Porter and Mark Kramer (2002), the author builds her framework of analysis on the concept of competitive advantage. This concept is founded on the ability of businesses to create long-term relationships with the arts, enabling the creation of products and services that generate added value on the market, brand strength, and the opportunity to enhance corporate image (Comunian, 2008; Porter & Kramer, 2002; Turgeon &

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Colbert, 1992). The author therefore asserts that companies choose to work with art mainly to increase innovation and creativity by creating competitive advantage through the infusion of symbolic values, aesthetic, and cultural features into their products (Comunian, 2009; Hagdtvedt & Patrick, 2008a, 2008b). Ultimately, the article by Roberta Comunian (2009) shows how Art and Business are to be interpreted as a real competitive model, not merely as a useful tool for marketing communication. The last article attributable to the research subcategory in question is by Nobuko Kawashima (2012). The author presents the situation of support for the arts in Japan, with the institution of méséna, a model in between American philanthropy and European public support for arts and culture. While in the USA, the main way is characterized by philanthropy, in Europe public–private partnerships in support of the arts are a more common way to sustain the arts (McIsaac, 2007; Morel, 2005). In Japan, however, companies have given rise to the autonomous initiatives of cultural policy, without governmental encouragement, generating a combination of philanthropy and sponsorship primarily aimed to increase Corporate Social Responsibility (Kawashima, 2012). Actually, the presence of art in its various forms and activities within the company is a phenomenon that affects all companies based on different countries and cultures. The following section of the chapter will be dedicated to a case study on the French brand Hermés, by showing the elegant use of art investments as a vehicle to create a dialogue with foreign cultures.

7.2

Case Study: Hermès

The relationship between art and business is used as a driving force by luxury companies that wanted to operate on an international level. Support for local art allows for a dialogue that is fundamental for the acceptance of an international brand by the elites of the host country. The luxury brand Hermès represents this strategy in detail. The history of the French company began in 1837 when saddler Thierry Hermès opened a workshop in Paris to create equestrian material with the ambition to serve the European nobility (Vogue, 2008). In 1880, Charles-Emile Hermès, son of Thierry, took the place of his father and moved the company to the 24 Rue du Faubourg-Saint-Honoré in Paris, which is still the headquarter of the Maison today. The company continued to manufacture customized saddles throughout the nineteenth and twentieth centuries, conquering the international market and supplying the stables of the aristocrats of Europe, Russia, North Africa, Asia, and America (Pizzuto, 2020). In 1918 the grandsons of Thierry Hermès, Adolph, and Emile Maurice boosted innovations in the company introducing the use of zipper in France and expanding the production with belts, gloves, and jewelry (Vogue, 2008; Pizzuto, 2020). They created, even unwittingly, the first contemporary fashion best-sellings

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in 1937: the Hermès silk scarf and the Kelly bag (a tribute to Grace Kelly) inspired by the bags used by horse riders, as most of the Hermès pieces (Pizzuto, 2020). In the 1950s, the sons-in-law of Emile Maurice Hermès, Robert Dumas, and JeanRené Guerrand took over the reins of the family luxury house. They pursue diversification and open up to ready-to-wear production; this fundamental turning point will be accompanied, 12 years later, by the establishment of a global Hermès distribution network (Pizzuto, 2020). When Robert Dumas died in 1978, the management of the company passed into the hands of his son Jean-Louis Dumas. The young Dumas, conditioned by his experience as a buyer for Bloomingdale’s in the Eighties, was responsible for a turnaround in the management of the brand (Som & Blanckaert, 2015). The multifaceted strategy of Dumas revitalized the product line to strengthen the brand’s appeal towards a younger clientele. In the mid-1990s, Dumas redesigned the retail distribution network of its products; he built an empire of retail stores around the world, reducing the number of franchises and increasing the number of owned points of sales. Today the group Hermès International is led by Axel Dumas, the last member of the founder family leading an empire built in six generations and employing now 15,417 people worldwide on “311 exclusive stores, 223 of which were operated directly” (Hermès, 2020a). Since 1837 and generation after generation Hermès diversified its production being present in a wide range of sectors, from leather goods and saddlery to men and women prêt-à-porter, jewelry, furniture, wallpaper, perfumes, and watches (Rocca, 2011). In March 2019, the luxury house announced its expansion into skincare and cosmetics by 2020 (Business of Fashion, 2020b). Hermès is still characterized today by high-quality production inspired by the values of traditional craftsmanship. Another member of the family, Pierre-Alexis Dumas, is the current artistic director of the Maison. Graduated in visual arts, the creative director boosted the relationship between Hermès and the arts, especially via the creation of the Foundation Hermès, inaugurated in 2008 to support art entrepreneurs around the world (Business of Fashion, 2020a). The arts are typically used as a valuable tool to open and maintain a dialogue between the French brand and different countries and cultures, as explained in the following paragraph.

7.2.1

Hermès and the Arts

With its tradition of craftsmanship and its unique marketing strategy, Hermès has succeeded in creating timeless products today considered to be on par with works of art. The Birkin bag is an example of the greatest icons of elegance in the world; created from a casual meeting between Jean-Louis Dumas and actress Jane Birkin during a Paris–London flight in 1984, the Birkin fully represents the concept of luxury goods: a rarity, a sought-after and exclusive good reserved for a select few—the highest price paid for a Hermès bag was $379,261 (about €330,000) (Ginsberg, 2017).

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The other iconic product of the Maison is the carré (literally “square” in French), a precious 90
90 cm piece of tissue produced by Hermès. Each silk scarf is considered a blank canvas onto which an artwork can be painted. Not surprisingly, these scarves have become collectors’ items as the ones belonging to the Maison Carré Foundation, a private collection of Hermès silk scarves owned by Aleksander and Ekaterina Zybin composed of more than 700 unique authors’ pieces; it is considered one of the largest collections in the world (Allegrucci, 2017). In 2017 to mark the 80th anniversary of the Hermès carrè, 100 scarves of the collection have been exhibited at the ARDAM All-Russian Decorative Art Museum (Allegrucci, 2017). Since the first model was designed, numerous artists collaborated with the Maison to create new scarfs and even today Hermès is constantly looking for new illustrators. A list of the most famous collaborations can be found on the Carré de Paris Hermès Scarf Blog; the same website also offers an evaluation and authentication service to testify that most of the pieces are considered artworks (Carre de Paris, 2018). The initiative of collaborating with artists for the creation of the scarves took place with Robert Dumas. Pierre-Alexis Dumas decided to pay tribute to this longstanding tradition initiated by his grandfather with a project labeled Hermès Éditeur. Began in 2006 and carried on until 2015, this initiative consisted of four editions in which limited production silk scarves were decorated by an artist and then presented in a traveling exhibition to testify “(. . .) this bridge between the applied arts, which is our domain, and the world of contemporary plastic arts,” as stated by the same Pierre-Alexis Dumas, currently artistic director at Hermès (Hermès Èditeur, 2018). The most recent initiative for the promotion of silk scarves is the Hermès Carré Club, inaugurated in 2019 (November 29, 2019–December 8, 2019) at the Carreau du Temple in Paris, the exhibition shows the secrets of the creation and the design of Hermès fabrics. Similar initiatives have been proposed in previous years in Milan, Los Angeles, New York, Singapore, and Toronto (Duval, 2019; Hermès, 2020b). In addition to the representation of Hermès products as artworks, the massive intervention of the company into the world of the arts is expressed mainly through the eponymous Foundation’s activities. The Foundation d’entreprise Hermès was created in 2008 by Pierre-Alexis Dumas to give structure to Maison’s sponsorship and philanthropic activities and to strengthen their long-term impact. Therefore, the Foundation supports activities that promote new jobs in the fields of creative arts, crafts, education, and biodiversity, most of them dedicated to younger generations (Fondation Hermès, 2020). The Foundation manages nine main programs with a combined focus on skills, creativity, and knowledge transfer (Fondation Hermès, 2020). Some programs belong to the Corporate Social Responsibility activities of the company, as the Biodiversity and Ecosystems program, founded in 2008 to preserve biodiversity (in 2016, the Foundation also started a partnership with the WWF), and the H3 (Heart–Head–Hand), a solidarity program launched in 2013 and designed in collaboration with the employees of the company. The name reflects the values of the program: heart for generosity, head for analysis, and hand for application.

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The project Manufactory has been created to address to new generations. It is an apprenticeship program that started in 2016 designed to introduce young students to the world of craftsmanship. Close to the project Manufacto, is the so-called Savoirfaire academy, the program of the foundation dedicated to the transmission of knowledge and craft-related practices. The other five projects belonging to the Fondation Hermès are more art-oriented. Some programs as New Settings were inaugurated in 2011 to support the creation and dissemination of both live performances and visual artworks. With an annual call for projects open to artists from all over the world, the Foundation supports diverse assignments from the production to the final performance hosted by Hermès partners in Paris—Centre Pompidou—or in the USA through linkages with the FIAF—French Institute Alliance Française in New York (Fondation Hermès, 2020). Another program that testifies the link between Hermès and the USA is Immersion, dedicated to contemporary photography. This project is conceived as a cultural bridge between France and the USA, to promote American photographers who have the task of creating new photographic work in France and French photographers who perform photographic work in the USA. In 2018, Immersion continued to expand its collaborations with new partners: the San Francisco Museum of Modern Art in the USA and the Henri Cartier-Bresson Foundation in Paris (Fondation Hermès, 2020). Artists in the City is a project inaugurated in 2018 that presents a series of initiatives to facilitate access to education and training in performing arts encouraging amateurs and professionals to perfect their skills. Arts Residencies is a project launched in 2010 to allow artists to produce original works with different materials while working alongside Hermès craftsmen in an environment that encourages unusual and unique artistic experiments. The residency program allows visual artists to create their works in different contexts. Each resident produces two copies of an artwork, one remains the property of the artist, the other is kept by the Foundation to be exhibited in art spaces around the world, like the Palais de Tokyo in Paris, Le Forum in Tokyo, and the Atelier Hermès in Seoul. The Foundation is committed to supporting visual arts thanks to five exhibition spaces dedicated to contemporary art in Asia and Europe: La Verrière in Brussels, Atelier Hermès in Seoul, Aloft at Hermès in Singapore, Ginza Maison Hermès (called “Le Forum”) in Tokyo, and La Grande Place at the Musée du Cristal SaintLouis in Saint-Louis-lès-Bitche, France. Each of these spaces is set up with the aims of making the work of French artists known outside the nation’s borders and promoting the local art scene of the host country. The Foundation supports the development of original artistic approaches. The completed projects are exhibited in galleries as personal exhibitions with the help of independent curators who are chosen among the leading figures in the global art world. These artworks are designed and produced specifically for the Foundation’s spaces and are often exhibited for the first time in these galleries.

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La Verriere inaugurated in Brussels in 2000, produces and promotes four exhibitions of contemporary art per year coupled with design projects (Agenda Brussels, 2020). The Atelier Hermès in Singapore was inaugurated in November 2006 and is located at the Maison Hermès Dosan Park, one of the fourth Maison Hermès in the world, emerged as an important cultural forum to support and celebrate the work of Korean artists and stimulate the interchange between local artists and the craftsmanship talent of Hermès artisans (Maison Dosan Park, 2020). The Ginza Maison Hermès—Le Forum—is located at the Hermès flagship store in Tokyo since 2001. The structure was created by the archistar Renzo Piano and is home to the brand’s largest retail space in Japan, as well as offices, a showroom, a café, and a movie theater (Yonder, 2020). Another exhibition spot for Hermès is La Grande Place hosted at the Saint-Louis Crystal Museum located in Saint-Louis-lès-Bitche, France. The site hosts 2000 pieces of crystal artworks and presents temporary exhibitions realized in partnership with the Fondation d’Entreprise Hermès (Saint-Louis, 2020). At least, another space is used by Hermès as an installation gallery: the Aloft in Singapore. This site occupies the upper floor of the Hermès flagship store at Orchard Road; here the Hermès Foundation invites two artists annually to interpret and exhibit their projects built on a specific thematic to engage a dialogue with the local public (Wong, 2019). Thanks to the arts-related activities sustained and sponsored by the Hermès Foundation, the brand Hermès can arouse high interest within the local cultural scene, as well as reaching a wide recognition in the world of international art.

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Legifrance. (2019). Loi n 2003–709 du 1er août 2003 relative au mécénat, aux associations et aux fondations. Accessed October 4, 2019, from https://www.legifrance.gouv.fr/affichTexte.do? cidTexte¼JORFTEXT000000791289&categorieLien¼id. Lindenberg, M., & Oosterlinck, K. (2011). Art collections as a strategy tool: A typology based on the Belgian financial sector. International Journal of Arts Management, 13(3), 4–19. Maison Hermès Dosan Park. (2020). “maisondosanpark.hermes.com”, in https://maisondosanpark. hermes.com/en/ (consultato il 16/12/2018). McIsaac, P. (2007). Public-private support of the arts and German cultural policy the case of Wilhelm Bode. International Journal of Cultural Policy, 13(4), 371–391. https://doi.org/10. 1080/10286630701683276 Moir, L., & Taffler, R. J. (2004). Does corporate philanthropy exist? Business giving to the arts in the U.K. Journal of Business Ethics, 54(2), 149–161. http://www.jstor.org/stable/25123333 Morel, C. (2005). Will business ever become legitimate partners in the financing of the arts in France? International Journal of Cultural Policy, 11(2), 199–213. https://doi.org/10.1080/ 10286630500198229 Mulcahy, K. V. (1999). Cultural patronage in the United States. International Journal of Arts Management, 2(1), 53–58. https://www.jstor.org/stable/41064675 Olkkonen, R., & Tuominen, P. (2006). Understanding relationship fading in cultural sponsorship. Corporate Communications: An International Journal, 11(1), 64–77. https://doi.org/10.1108/ 13563280610643561 Pizzuto, A. (2020). Hermès, le luxe à l’état pur. Accessed April 16, 2020, from https://www. marieclaire.fr/histoire-hermes,1338398.asp Porter, M. E., & Kramer, M. R. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80(12), 56–69. Reiss, A. (1989). Business takes a partner – the arts. Management Review, 78(6). Rocca, F. (2011). Hermès: l’avventura del lusso. Torino: Lindau s.r.l. Saint-Louis. (2020). La grande place. Musèe du cristal. Accessed April 19, 2020, from https:// www.saint-louis.com/media/pdf/Musee_Saint-Louis_La_Grande_Place-FR_EN.pdf. Sauvanet, N. (1999). Sponsorship in France. International Journal of Arts Management, 21(1), 59–63. https://www.jstor.org/stable/41064676 Scaltsa, M. (1992). Defending sponsorship and defending the responsibility of governments towards the visual arts. International Journal of Museum Management and Curatorship, 11 (4), 387–392. https://doi.org/10.1016/0964-7775(92)90077-I Schmitt, A., & Simonson, B. S. (1997). Marketing aesthetics: The strategic management of branding, identity and image. New York: Free Press. isbn:13:978-0684826554. Som, A., & Blanckaert, C. (2015). The road to luxury: The evolution, markets, and strategies of luxury brand. Hoboken: Wiley. Stenstrom, E. (2008). What turn will cultural policy take? The renewal of the Swedish model. International Journal of Cultural Policy, 14(1), 25–35. https://doi.org/10.1080/ 10286630701856476 Turgeon, N., & Colbert, F. (1992). The decision process involved in corporate sponsorship for the arts. Journal of Cultural Economics, 16(1), 41–51. http://www.jstor.org/stable/41810470 Tweedy, C. (1991). Sponsorship of the arts-an outdated fashion or the model of the future? International Journal of Museum Management and Curatorship, 10(2), 161–166. Vogue. (2008). Hermès, la boutique de luxe au célèbre carré de soie. Accessed April 16, 2020, from https://www.vogue.fr/communaute/wiki-de-la-mode/articles/herms-la-boutique-de-luxeau-clbre-carr-de-soie/20604. Wong, V. (2019). Aloft at Hermes is back with a new exhibition and here’s why you should check it out. Accessed April 19, 2020, from https://www.herworld.com/fashion/aloft-hermes-irfanhendrian-art-exhibition-singapore/. Wyszomirski, M. J. (1996). Where do we go from Here? The future of support for the arts and humanities. The Journal of Arts Management, Law, and Society, 26(2), 75–77. https://doi.org/ 10.1080/10632921.1996.9942955

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Chapter 8

Art and Business Collections

Abstract Companies belonging to different industries are increasingly involved in the creation and management of important corporate collections. Numerous and diversified are the benefits of this form of investment: from a tax reduction to employees’ loyalty and Corporate Social Responsibility strategies. An interesting benefit is otherwise the positive effect corporate collections have on the image of the company, perceived by stakeholders as sophisticated and exclusive. The case study at the end of this chapter is dedicated to the art collection of the Italian luxury brand Prada.

8.1

Art and Business Collections1

The common thread among the articles belonging to the branch of study called “Business and art collections” concerns the desire to understand the motivation behind pushing a company to create and manage its own art collection. Companies initiated to collect art beginning in the late nineteenth century, but true corporate collections began in the 1930s. Next, in the 1980s, large companies belonging to different industries became among the most active collectors of artworks (Wu, 2003), with collections that have continued to exist and grow to the present day. Most of the major corporate art collections were developed between the years 1960 and 1980 and began to be a global trend in the late 1980s (Martorella, 1996; Wu, 2003). This trend, initially born in English-speaking countries gradually expanded to other markets, mainly in Europe (Behnke, 2007; Kottasz, Bennett, Savani, Mousley, & Ali-Choudhury, 2007, 2008; Lindenberg & Oosterlinck, 2011). Business involvement in the purchase and collection of artworks, mainly driven by the desire to build an innovative, dynamic image, has undergone a major boost

1 Section 8.1 is revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016.

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_8

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since the 1990s. During this period, a certain democratization of the art market upset the traditional rules of this sector, primarily through the growing importance of art fairs and biennials that opened the door to people with high purchasing power. Among the main reasons underlying the creation of a collection, it is possible to consider the improvement of the working environment, the acquisition of valuable tools, the benefits in the form of tax relief and the improvement of corporate image (Kottasz et al., 2007, 2008; Lindenberg & Oosterlinck, 2011). While before 1990 art collections were primarily a reflection of the passion owners or senior managers had for arts, with time they seem to have become communication tools in the hands of companies. Art can identify businesses as creative and innovative subjects and also socially responsible actors. During the 1990s, numerous art collections began to be placed in separate areas of the company (Behnke, 2007). Some corporate collections, such as the EA Generali Foundation, or the Deutsche Guggenheim Berlin Deutsche Bank adopted exhibition spaces more and more similar to museums mainly in order to position themselves as active players in the art world (Behnke, 2007). Although companies tend to be reluctant to admit it, as will be shown in the analysis of the collected articles, corporate collections are definitely created for investment purposes. This is especially the case for countries such as the USA, Japan, or France, where substantial tax reductions are granted to companies that decide to support the arts (Kottasz et al., 2008). The predominant motivation behind the creation of an art collection frequently seems to be a wish to implement CSR (Corporate Social Responsibility) and to improve public image by strengthening enterprises’ identity, consequently attracting consumers, shareholders, and highlevel employees (Kottasz et al., 2007, 2008). Collecting art can be considered as a way to project a civilized and sophisticated image for a company. It therefore supports the strategic nature of this activity, which is often addressed by corporate guidelines for the purchase of artworks. For example, some companies tend to purchase art that reflects their identity, which supports still unknown artists, or that is consistent with an image of prestige (Hoeken & Ruikes, 2005; Kottasz et al., 2007, 2008; Lindenberg & Oosterlinck, 2011). The Table 8.1 shows the authors, articles, and the main topics of the current research strand. From a chronological point of view, this literature subcategory opens with the article by Joanne L. Cassullo (1988), which offers the general argument of the topics covered in this research field. The author claims that the art market is now liquid, consisting of multiple exchanges driven by both economic and aesthetic reasons. Thanks mainly to the increasing involvement of businesses, the arts would seem to have become a commodity. Art masterpieces have become the new tools of business investment, mainly in the USA, Europe, and, now, Asia. Multinational companies such as AT & T, Equitable, Philip Morris, IBM own and operate their art collections. Some collections are open to the public and are chiefly meant for public relations; other collections are private and mainly reflect the activity of the company or the

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Table 8.1 Fifth line of research: art and business collections Line of research five (first and last items published) Authors Eight selected items Main theoretical contributions

Art and Business Collections (1998–2014) Behnke (2007), Cassullo (1988), Hoeken and Ruikes (2005), Kottasz et al. (2007, 2008), Lindenberg and Oosterlinck (2011), Roodhouse (1997), and Yoon and Shin (2014) Collecting art can be considered a way to project a civilized and sophisticated image for a company. It therefore supports the strategic nature of this activity, which is often addressed by corporate guidelines for the purchase of artworks able to reflect corporate identity, usually consistent with an image of prestige

Source: Table’s form elaborated upon by the present author

interest of the owner. The author finally claims that companies increasingly compete with museums for the acquisition of artworks (Cassullo, 1988). The article by Simon Roodhouse (1997) leads to an in-depth analysis of the ways artists and the business world encounter each other via a case study centered on a Dutch company, ABN/AMRO bank that has built a collection of 13,000 artworks, as well as Siemens AG, a Monaco-based company that has an art collection as well. The case studies stated that the most important criterion in selecting a particular work of art is always the quality of the artwork itself, given that the artwork will be used to support the image of the company by strengthening its identity vis-à-vis its target, be it real or potential (Roodhouse, 1997). Also Hans Hoeken and Lenneke Ruikes (2005) focused with their research on the study of the effects that an art collection has on corporate identity, a line of inquiry which will be later pursued in the works of Rita Kottasz, Roger Bennett, Sharmila Savani, and Rehnuma-Ali Choudhury (2007, 2008). Articles showed how collecting art could be a valuable aim, adapted to feed Corporate Social Responsibility, and reinforce a positive corporate image, especially in those markets where it is difficult for a company to distinguish itself from its competitors. This problem seems to be perceived in a particular way by financial institutions, such as banks or insurance corporations that, not surprisingly, are the major companies involved in art collecting (Lindenberg & Oosterlinck, 2011). By analyzing five of the major Dutch banks that possess substantial art collections authors Hans Hoeken and Lenneke Ruikes (2005) showed that consumers also look at the content of the artworks. This means that artworks can act as symbols of the personality of a company just like retail windows, logos, and all forms of visual communication that cause contact between the company and the consumer. Indeed, the resultant strengthening of the corporate image and identity seems to be a very important motivation, as further supported by numerous authors in the literature. Of equal importance would seem to be the improvement of the working environment and corporate hospitality, to the benefit of employees and customers alike (Hoeken & Ruikes, 2005; Kottasz et al., 2008). The role of business art collections is mainly oriented towards the external and internal communications of firms, which materialize with image building, creating a favorable impression in

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customers, and communicating key corporate values; all of these factors underpin the corporate identity management mix (Kottasz et al., 2008). The case study based on the company that owns one of the major art collections in the business world, namely, Deutsche Bank, shows how art collection is a valuable tool for corporate hospitality able to attract and retain customers (Kottasz et al., 2008). Besides, the case study showed that the art collection can help differentiate the company from competitors and reinforce the corporate identity management mix (Kottasz et al., 2007). Creating and managing an art collection might reflect behavior in support of the values of beauty and elegance and this could be used to support the image of a civil, sophisticated, and prestigious organization. Company collection influences all elements of corporate identity conveyed through the use of Integrated Marketing Communications (IMC), with the consequent unification of the corporate voice (Dewhirst & Davis, 2005; Ewing, 2009; Laurie & Mortimer, 2011; Madharavam, Badrinarayanan, & McDonald, 2005; Ratnatunga & Ewing, 2005; Reid, Luxton, & Mavondo, 2005). Consequently, companies do not use their collections as a tool to reduce taxes or as an investment, but rather that the interest taken in art by enterprises should be primarily related to the construction and communication of its brand identity (Kottasz et al., 2008). Cristoph Behnke (2007) analyzes the effects that the creation of a corporate collection has on the corporate staff, with the identification of a new corporate role, that of “new professionals,” who are in charge of managing the company collection. The new professional or business curator comes from an artistic field and he or she continues to maintain relationships with his or her area of origin while nevertheless belonging to the business organization. As a result, the intervention of new professionals permits businesses to become important actors in the arts (Behnke, 2007). Hyejung Yoon and Hyung-Deok Shin (2014) wonder, however, if there is a clear strategy about the size of art collections and whether or not a given corporate collection size dimension is a decisive factor for an enterprise in its attempts to achieve the desired results. Probably the most significant result was related to the fact that the area of business in which the company operates was not a significant variable for the size of the art collection, in contrast to the commonly held belief which holds that financial firms tend to have larger collections (Martorella, 1996; Yoon & Shin, 2014). Moving to Belgium, authors Morgane Lindenberg and Kim Oosterlinck (2011) focus their research on the understanding of the reasons that led Belgian financial institutions to develop important art collections and how these corporate collections were organized. They intended to provide a summary of the policies applied by banks on the activities of acquisition and management of art collections. The authors claim that financial institutions commonly use their own art collections to convey a series of positive associations both inside and outside the organization. Another important factor noted by authors is the fact that banks use their art collection to organize ethical and social actions for the development of marketing relationships with major stakeholders. Another point refers to corporate philanthropy, with the interviewed banks which would like to project an image of responsibility towards the

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local community (Lindenberg & Oosterlink, 2011). The last point mentioned by the authors refers to art investment. Even though the surveyed banks are reluctant to admit that artistic capital can diversify their investment portfolio (Kottasz et al., 2008), authors Morgane Lindenberg and Kim Oosterlinck (2011) point out that many of the surveyed banks have developed a buying process led by art experts, internal or external to the company, able to follow art trends and identify emerging talent. Also, most of the Belgian institutions object of the research have developed strategies for the management and the promotion of art collections to maintain and increase their value, such as the allocation of an annual budget for the restoration and the insurance of the artworks (Lindenberg & Oosterlink, 2011). The case study that follows is dedicated to the Italian luxury brand Prada to show how the personal interest of the company’s owners in the arts—in this specific case that of Miuccia Prada, and Patrizio Bertelli, respectively creative director and CEO of the company—can boost a strategy based on the arts, nurturing a perception of exclusivity in the stakeholders, and being warmly accepted by the artistic environment as a modern mécénat at the same time.

8.2

Case Study: Prada

Brothers Mario and Martino Prada opened their first store in Milan in the Duomo gallery in 1913. Their production of suitcases, trunks, and handcrafted bags with refined leathers led the two brothers to be known and appreciated by the most prominent families of the Italian nobility of the time. This success led them to become official suppliers of the royal house of Savoy, expanding the awareness of their name to other nobles European families (Fashion Luxury, 2019). In 1952, the store and the activities of the Prada brothers passed to Mario’s daughter, Luisa Prada. At that time, the image of Prada as a brand was far from glamourous, nothing like the images of other Italian luxury brands, such as Gucci, that were already appreciated by world celebrities (Moore & Doyle, 2010). The transformation of Prada into one of the fundamental brands of the fashion industry began in 1975, with the intervention of Miuccia Prada in the family business. Daughter of Luisa, Miuccia obtained a Ph.D. in political science and demonstrated a pure interest in the arts. Upon her arrival, the heiress of Prada managed to infuse the house-crafted creations with her elegant and cultivated touch, enabling the brand to gain the status it enjoys today. More specifically, the turning point for the brand came in 1977 after the meeting between Miuccia Prada and her future husband, the leather goods entrepreneur Patrizio Bertelli. With his entrepreneurial flair, Bertelli managed to push the success of the brand Prada through a dual strategy of differentiation and growth (Moore & Doyle, 2010). The success of the brand is due exactly to the dyad Patrizio Bertelli and Miuccia Prada: as the first infuse a cleaver strategy to the development of the brand, like the former infuse every collection with her innovative and effective style.

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In 1983 Prada begins to reap the benefits of its success through the expansion of its retail outlets in Italy and worldwide, with the directly owned shops in Milan, New York, Madrid, London, Paris, and Tokyo followed in 1991 with China, and the US expansion (Prada Group, 2020a). Today, Prada is the flagship brand of the Prada Group, which currently comprises five distinct brands, four of which operate in the luxury fashion market (Prada, Miu Miu, Church’s, and Car Shoe) and one of which is in the fine foods market (Marchesi 1824; Masè & Silchenko, 2017). The group has been publicly listed on the Hong Kong stock exchange and has a turnover of approximately €3.2 billion as stated in the 2019 fiscal year results presented in Milan on the March 18, 2020 (Prada Group, 2020b). The net sales of the group are boosted by the owned retail channel lead by the flagship brand Prada, which represents 83% of the entire retail sales (Prada Group, 2020b). Displays and interiors for all the physical locations are created in collaboration with vanguard designers and architects throughout the world, and the brand awareness is continuously nurtured via numerous initiatives as pop-ups, special setups in-store usually realized in collaboration with artists and designers (Masè & Silchenko, 2017; Prada Group, 2020b; Ryan, 2007). Not surprisingly, Miuccia Prada and Patrizio Bertelli are listed as one of the most influential couples in the world not only in the fashion and luxury industry but also in the art domain (ArtNews, 2019; Forbes, 2019). Their interventions in the field of arts and culture will be better explained in the next paragraph.

8.2.1

Prada and the Arts

Miuccia Prada and Patrizio Bertelli are two distinguished personalities in the world of contemporary art, as demonstrated by their position on the 200 top art collectors list since 2005 (ArtNews, 2019). As clarified by Miuccia herself in an interview, “Fashion is my job and I do it with passion but it is the financial means that allows me to dedicate time and energy to what is most important to me: Art” (Dalmiglio, 2015). As made evident by Miuccia’s words, Prada’s desire has always been to keep the world of luxury and the world of art separated. Today, the most notable luxury players, such as Chanel and Hermès, build bonds with art in a strategical way (Weidemann & Henningss, 2013), but Prada seems to be better accepted in the world of culture thanks to the real interest in the arts of the two CEOs of the brand. Prada brand is recognized today as one of the main players in the art world, mainly through the collection and dissemination activity that is managed through the Prada Foundation.

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The art collection created by Patrizio Bertelli and Miuccia Prada was initiated in the 1990s and, with the creation of the Prada Foundation in 1993, they became important personalities in the art world (Dalmiglio, 2015). The Prada Foundation currently owns three exhibition spaces in Italy, the oldest being the historic headquarters of the Foundation in the Queen’s corner building, overlooking the Grand Canal in Venice, Italy. The conservative restoration of Ca ‘Corner Della Regina (This is the Italian name of Queen’s corner) was promoted by the Prada Foundation at the end of 2010. This activity was in line with the directives of the Superintendence for Architectural and Landscape Heritage of Venice and the Lagoon and it brought to light in 2019 a fresco in the central hall first hidden (Fondazione Prada, 2020a). In May 2015, the Foundation opened a new exhibition area in Milan in a building restored by architect Rem Koolhaas (Fondazione Prada, 2020b; Ryan, 2007). The architect brilliantly rehabilitated a former gin distillery to install the Prada Foundation’s art collections. In the rehabilitation of the existing spaces, he added three new buildings: the Podium (pavilion of the exhibition), the Cinema (auditorium multimedia), and the Torre. This former is a 60-meter-high tower inaugurated on April 18, 2018 in Milan; it transformed the Milanese skyline together with its cultural and artistic activity. The inaugural exhibition “Atlas” hosted artworks by Jeff Koons, John Baldessari, Carsten Höller, and Mona Hatoum showing works from 1960 to 2016 (Fondazione Prada, 2020b; Quinton, 2018). The third space is the Prada Observatory, inaugurated in December 2016 in Milan on the fifth and sixth floor of the building that houses Prada’s historic store in the Galleria Vittorio Emanuele II in the heart of the city. The Observatory “will be dedicated to the visual arts and in particular to contemporary photography” (Milano Today, 2016; Fondazione Prada, 2020c). The Foundation has organized many exhibitions and contemporary art events in its different buildings showing the Prada own art collection that is continuously increased by commissioning new works of art. Among the most important artists involved through time are Lucio Fontana, Jeff Koons, Damien Hirst, Karsten Holler, Francesco Vezzoli, Mariko Mori, Sam Taylor Wood, Anish Kapoor, Tom Sachs, Tom Friedman, and Marc Quinn (Dalmiglio, 2015). Most of the artworks composing the collection have been acquired when the artists were at the beginning of their careers. The same artists are today superstars in the world of contemporary art, also because of the support given by the Prada Foundation in the production and circulation of their artworks (Amadasi, 2007). The sustain of Miuccia Prada and Patrizio Bertelli is not limited to the host country of the brand, Italy. In 2014 Prada built a temporary exhibition space in Seoul, South Korea, in collaboration with architect Rem Koolhaas. This space called Prada Transformer can take different configurations to host cultural, art or fashion exhibitions (Visconti & Di Giuli, 2014). In 2014 another exhibition space was opened also in Hong Kong under the name of Pradasphere.

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Another interesting project is the Prada Rong Zhai project, a historic residence inaugurated in Shanghai in 2017 after 6 years of restoration now ready to host cultural activities (Prada Group, 2020a; Rong Zhai, 2020). This project is part of the various restorations and cultural heritage programs the Prada Group sponsored to let cultural heritage being a vehicle for corporate social responsibility communication (Prada Group, 2020c). Their love for the arts has expanded overtime outside the borders of the Foundation, with the eclectic style of Miuccia Prada in the guise of art director for a performance of Verdi’s Attila opera staged at the Metropolitan Museum of New York in 2010, or as a costume designer in making The Great Gatsby movie in 2013 (Binkley, 2013; Karmali, 2013; Masè & Silchenko, 2017). The name of Prada can be associated with the art world via the sustain activities to arts and culture previously described, as well artists seem to appreciate Prada as a brand, as shown by the artwork Prada Marfa (Zara, 2019) dedicated to the iconic Italian luxury brand, a recognition of its role as a new mécénat in the art field.

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Ryan, N. (2007). Prada and the art of patronage. Fashion Theory – Journal of Dress Body and Culture, 11(1), 7–24. https://doi.org/10.2752/136270407779934588 Visconti, L. M., & Di Giuli, A. (2014). Principles and levels of Mediterranean connectivity: Evidence from Prada’s “made in worlds” brand strategy. Journal of Consumer Behaviour, 13 (3), 164–175. https://doi.org/10.1007/978-3-8349-4399-6 Weidemann, K. P., & Henningss, N. (2013). Luxury marketing a challenge for theory and practice. Wiesbaden: Springer Gabler. Wu, C.-T. (2003). Privatising culture: Corporate art intervention since the 1980s. London: Verso. Yoon, H., & Shin, H. D. (2014). Determinants of the number of artworks in corporate art collections. International Journal of Arts Management, 16(2), 19–28. https://www.jstor.org/ stable/41064905 Zara, J. (2019). Prada in the desert: How a fake luxury boutique became a Texas landmark. Accessed April 21, 2020, from https://www.theguardian.com/us-news/2019/oct/03/pradamarfa-texas-sculpture-boutique.

Chapter 9

Art and Consumer Perception

Abstract The main reason for companies to invest in art is to gain a positive perception in their stakeholders, with a special interest in consumers’ perceptions. Authors belonging to this research strand agree that the arts can ensure a beneficial spillover effect on products and brands in terms of image, ensuring a perception of luxury and exclusivity in consumers and common observers. The case study at the end of this chapter will describe the strategy implemented by the luxury company Dolce & Gabbana, which was able to create through time an elitist image linked to its historical cultural traditions by massively associating popular art to the company image.

9.1

Art and Consumer Perception1

From the previous literature analyzed we showed that, in most cases, the activities of supporting the arts have a common denominator of being oriented to the strengthening of the company image (Bloch, 1989; Brennan, Binney, & Brady, 2012; Dell’Era, 2010; Hetsroni & Tukachinsky, 2005; Hoeken & Ruikes, 2005; Kawashima, 2012; Kottasz, Bennett, Savani, Mousley, & Ali-Choudhury, 2007, 2008; Lindenberg & Oosterlinck, 2011; McNicholas, 2004; Moir & Taffler, 2004; Pappu & Cornwell, 2014; Roodhouse, 1997; Sauvanet, 1999; Thompson, 2005; Turgeon & Colbert, 1992; Van der Burg, Dolfsma, & Wilderom, 2004). Building a positive image of the brand in the consumer’s mind means constructing positive ties between the counterparts resulting, in some cases, in the purchase of goods and services produced and distributed by the company (Aaker, 1996; Aaker & Joachimsthaler, 2000; Keller, 1993; Keller, Busacca, & Ostillio, 2005).

1 Section 9.1 is revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016.

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_9

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Table 9.1 Sixth line of research: art and consumer perception Line of research 6 (first and last items published) Authors 20 selected items

Main theoretical contributions

Art and consumer perception (1997–2018) Alfakhri, Harness, Nicholson, and Harness (2018), An and Youn (2018), Carrillat, D’astous, and Colbert (2008), Choi, Ko, and Kim (2016), Colbert, D’Astous, and Parmentier (2005a, 2005b), Dalakas (2009), Hagdtvedt and Patrick (2008a, 2008b), Huettl and Gierl (2012), Kim, Ko, and Lee (2012), Lagier and Godey (2007), Lee, Chen and Wang (2015), Megehee and Spake (2012), Naletelich and Paswan (2018), Quester and Thompson (2001); Ruth and Simonin (2003), Vanhaverbeke (1992), Vukadin, Wongkitrungrueng, and Assarut (2018), and Wang, Cruthirds, Axinn, and Guo (2013) All the activities carried out by the company in relation to arts are guided by the desire to stimulate consumer’s attention, and to positively affect the community of reference to that enterprise. The items belonging to this strand aims to understand if business strategies connected to arts are welcomed or criticized by final consumers.

Source: Table’s form elaborated upon by the present author

So one may safely venture to say that all the activities carried out by the company concerning art are guided by the desire to stimulate consumer’s attention and to positively affect the community of reference of that enterprise. The following table (Table 9.1) shows authors, articles, and topics of this research strand. A forerunner to this research subcategory was the scholar Wim Vanhaverbeke (1992) on the perception of art sponsorship activities, with a focus on the experience of Flanders. The main objective pursued by Vanhaverbeke in his analysis is to understand whether consumers of art share the same vision of sponsorship activities as companies. The author concludes his study by saying that there is a divergence or asymmetry between the image that companies wish to create through sponsorship activities and the way in which consumers (students in this case) perceive this image, as students generally seem reluctant to think about art in economic terms (Vanhaverbeke, 1992). The most interesting difference that can be mined from the study in question, concerns the fact that the sample of students/consumers consider sponsorship activities as primarily driven by the desire to strengthen business advertising or obtaining tax advantages. Instead, the companies claim to be interested in the sponsorship of art primarily to prove they are “good citizens”, thereby encouraging benevolence to their community, the government, and its employees. Pascale G. Quester and Beverly Thompson (2001) focus on the important concept of art sponsorship, which to be effective, requires the management of promotional and advertising programs. The results showed that the audience is generally favorable to arts sponsorship, demonstrating a sense of gratitude towards the sponsors. The results show, however, that alongside sponsorship, good deals of communication programs including advertising activities are essential to the success of the investment in the relationship (Quester & Thompson, 2001).

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Other authors, instead, investigated how consumers reacted to the fact that different sponsors support the same organization or the same art event. This is the case of the article by Julie A. Ruth and Bernard L. Simonin (2003), which focuses on attitudes towards the various sponsors, the presence and the absence of contested/ undervalued goods, their nationality (domestic versus foreign), and the complementarity of the products or services. Mainly, the authors concentrate on the effect that the presence of a controversial sponsor may have on the assessment made by consumers about the receiver (Ruth & Simonin, 2003). The pillars of this research is the literature on brand equity, with a clear reference to the Customer-based Brand Equity model introduced by Kevin L. Keller (1993). The research results showed that consumers are not always open to the complementarity between sponsor and sponsee. This relationship is seen as too instrumental for sponsor’s commercial purposes, and can harm the same goodwill of the sponsor (Pappu & Cornwell, 2014). The sponsee itself must take care in choosing its sponsor as the spillover effect on brand image is bi-directional (Ruth & Simonin, 2003). A study on this issue is addressed by François Colbert, Alain d’Astous, and Marie-Agnès Parmentier (2005a, 2005b) on a sample of citizens in French-speaking Canada. The sponsorship activities, as indicated by the authors, can be commercial, and therefore directed to the sale of products or services, or philanthropic, and therefore oriented to the promotion of corporate social responsibility (Colbert et al., 2005a, 2005b). The authors try to understand whether and how the perception of consumers suffers variations in the presence of commercial or philanthropic sponsorship. The most interesting data mobilized by such research, as far as the topic Art and Business is concerned, is the low acceptance of sponsorship activities by private companies for artistic events related to public heritage. The consensus seems to worsen when a strong bond between sponsor and sponsee exists. This result could be attributed to the fact that consumers negatively judge the intrusion of businesses into an artistic heritage (Colbert et al., 2005a, 2005b). This figure is even more interesting because it contrasts with that obtained from previous analyses by Meenaghan (2001a, 2001b), whereby the higher the link between sponsor and sponsee, the stronger the impact on the brand image of the sponsor company (Colbert et al., 2005a, 2005b). The result is of interest to managers who choose whether or not to engage in a specific artistic sponsorship. In 2008, another article in the same analysis was published once again by François Colbert and Alain d’Astous, this time with the collaboration of François A. Carrillat. The authors insist on the analysis of the evaluation of art sponsorship from the vantage point of consumers, when sponsors sustain events of high art or popular art, and watch how this perception is reflected in the willingness of consumers to buy the products of the sponsor enterprises. High art events usually convey a sophisticated, serious, and high-level image (Carrillat, d’Astous & Colbert, 2008). Popular events are more market-oriented and they appeal to a wider section of consumers (Carrillat et al., 2008). Managerial implications suggested by the authors state that consumers seem to be more cynical about whether a company sponsors popular art because of a closer linkage with commerce. If the company is associated with popular art events or organizations, then the fact that they advertise their

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products or services through the sponsee is acceptable by consumers. If, instead, the company wants to be associated with high art, it should not promote its products or services through sponsorship, because this behavior is likely to be criticized by consumers (Carrillat et al., 2008). An example of the latter scenario was the hotly debated sale of Louis Vuitton products in conjunction with the Takashi Murakami retrospective at the MoMA in Los Angeles (Riot, Chamaret, & Rigaud, 2013). Another article belonging to the studies on consumer perception of the Art and Business intersection follows 2 years after the items analyzed previously. In 2007, Joëlle Lagier and Bruno Godey published their research suggesting we measure the perception of luxury products and art through an understanding of how these products affect cognitive and emotional resources on consumers’ perceptions. The authors listed 56 topics composing the scale to measure the aesthetic effect of luxury and art products. Henrik Hagdtvedt and Vanessa M. Patrick (2008a) presented an experiment to investigate so-called art infusion, according to which posits that the use of the works of art favorably influences the evaluation of products commonly used by consumers. On the assumption that art is a force capable of influencing consumer behavior, the authors theorize that there is a transfer of positive values from the artwork to the product, and this influence does not depend on the content of the artwork used, but is based on a general connotation that links art with a positive value in the consumer’s mind (Hagdtvedt & Patrick, 2008a). On this basis if a work of art is the bearer of certain perceptions and feelings, then the same perceptions can also be transferred to the object with which the artwork is associated. The process of art infusion is a specific type “of spillover effect, in which the key properties of art spill over onto the product with which it is associated, thus influencing the evaluation” by the consumer (Hagdtvedt & Patrick, 2008a: 381). Indeed, the products seemed more luxurious when associated with images of art. The results of this study demonstrate that the phenomenon of art infusion is valid, revealing that participants prefer works of art to those of nonart, regardless of their content (Hagdtvedt & Patrick, 2008a; 2008b). The results of this research show that the art images ensure a more favorable perception of the product by consumers, and also increase the perception of luxury (Hagdtvedt & Patrick, 2008a). In addition to the proposal about the presence of a spillover effect from the art to the product, the authors also suggest that visual art allows companies to “increase the extendibility of their brands” (Hagdtvedt & Patrick, 2008b: 212). The authors propose that art increases the perceived suitability between products, through the incremental cognitive flexibility that the products should stimulate in the consumer. These factors would give results in a more favorable assessment of the extension of the brand. By its very nature, visual art conveys an aura of prestige (Carrillat et al., 2008) and promotes thought flexibility (Dewey, 2005). Basically, the association with visual art improves the image of the brand due to the perception of luxury, and the correlation between different categories, and ensuring greater cognitive

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flexibility of the consumer. Assuming that these two influences are true, the improved brand image and boosted the perception of correlation between categories would guarantee an increase in brand extension (Hagdtvedt & Patrick, 2008b). Four years after the publication of the articles by Hagdtvedt and Patrick (2008a, 2008b), authors Verena Huettl and Heribert Gierl (2012) proposed the evolution of the study of art infusion. Their research identified a negative effect of art infusion, in instances where the work of art is associated with functional products, not just hedonistic ones. The consumer could automatically associate a high price to the product with any type of connection to art. The presence of works of art in the body of the product or its advertisements would indeed stimulate in the consumer the perception of luxury, as defined by the concept of art infusion (Hagdtvedt & Patrick, 2008a). The result of the research showed that the works of art should be used only for hedonistic products. In the case of the use of art to advertise works with functional characteristics, the statement of the price turns out to be critical information in order not to discourage a potential buyer. Hsiao-Ching Lee, Wei Wei Chen, and Chih-Wei Wang (2015) also propose a more detailed analysis of Hagdtvedt and Patrick (2008a, 2008b) to verify whether or not the use of art affects the prestige of luxury brands and the possible impact on the price. The authors apply their research to the luxury brand Louis Vuitton and confirm that visual art increases the perceived value of prestige among consumers. This effect, however, is valid as long as the price remains 25–50% higher than comparable products. For their analysis, the authors chose to use a Louis Vuitton product, in particular a wallet, with or without applications related to art. The test subjects numbered 141 and were randomly associated with the experimental condition with or without art. Research showed that even if the artwork used is not known by consumers, the presence of the work of art is still sufficient for the spillover effect. Therefore, “incorporating artwork on luxury brand items is an effective way to enhance consumers’ perceived prestige” (Lee et al., 2015: 602). Kyulim Kim, Eunju Ko, and Yang-Im Lee (2012) in their article propose another application of the art-infusion effect focusing on “fashion products with unknown brands” (Kim et al., 2012: 181). Their research reveals that art infusion can boost brand image stimulating purchase intention via the higher luxury perception assured by the art (Kim, et al., 2012). Other authors applied the art-infusion effect on the retail environment. This is the case of the research managed by Kelly Naletelich and Audhesh K. Paswan (2018) who showed how different genres of art influence the relationship between purchase intention and the characteristics of the shopper, the store, and the product. On the same track, the 2018 article of Ana Vukadin, Apiradee Wongkitrungrueng, and Nuttapol Assarut, who examined the role of artistic elements in retail. Collecting data from 300 shoppers in a shopping mall in Bangkok Thailand, results confirm that showing arts in malls can positively impact customer hedonic and symbolic value, resulting into a positive shopper response.

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The perception of the use of art by the consumer may also be analyzed through innovative methods such as visual narrative art applied to blogs, used by the authors Carol M. Megehee and Deborah F. Spake (2012). Indeed, individuals post stories and visuals through their blogs to express their everyday-life experiences usually mentioning the brands they consume. Also, in this case, the authors focused their research on luxury brands as able to establish strong emotional and symbolic associations with the consumer which can be easily modified through the use of art (Megehee & Spake, 2012). The size of hedonistic and utilitarian aesthetics is in fact able to influence cognitive, emotional, and behavioral experiences in consumers. This is the main reason why some authors such as Yong J. Wang, Kevin W. Cruthirds, Catherine N. Axinn, and Chiquan Guo (2013) claim that aesthetics represents a key analysis in marketing disciplines. Consumers may in fact be affected by numerous aesthetic stimuli when, for example, they enter a store or visit a website. Each of these stimuli can be modified strategically by companies through the use of art. For example, authors Demah Alfakhri, D. Harness, John Nicholson, and Tina Harness (2018) propose an investigation on how aesthetics can influence consumer behavior in a hotelscape. The study based on interviews with international clients leads to the conclusion that aesthetics and design positively influence hedonistic consumers, with beneficial effects observables in terms of word of mouth and loyalty. Also authors Donghwy An and Nara Youn (2018) propose that openness to aesthetics can have beneficial effects on consumers and individuals generally. They propose in their study a “positive relationship between experiencing works of art and being creative (An & Youn, 2018: 468). The same creativity is the background of the study managed by Eunha Choi, Eunju Ko, and Angella J. Kim (2016) who investigate luxury brand value co-creation processes via in-depth interviews with Chanel customers. Emotions and experiences influence customer value and reverberates into brand value, which have positive effects on purchase intentions (Choi et al., 2016). If companies seem to have understood the wealth underlying the relationship with art, some managers of the arts often seem reluctant to participate in such relations. As stated by Vassilis Dalakas (2009), there are still many obstacles to overcome in the perception of the collaborations of companies with art, mainly because there are fears that art could lose its integrity. Despite these fears, there seems to be a more and more positive disposition on behalf of the patron of the arts organizations for activities of relationship with businesses. The case study that follows shows how the intelligent inspiration of a particular form of art (popular art) can help the brand not only to improve the perception of sophistication in consumers, but also in creating a precious heritage able to nurture the brand image through time and generations.

9.2 Case Study: Dolce & Gabbana

9.2

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Case Study: Dolce & Gabbana

The Dolce & Gabbana group was founded in 1985 from the initiative of founding members Domenico Dolce and Stefano Gabbana, who are still heads of the company (Polan & Tredre, 2009). Dolce & Gabbana S.r.l. is the headquarter of a group of subsidiaries covering the major international markets where the brand is present. The group’s mission is “to design and distribute high-end clothing, leather goods, footwear and accessories under the Dolce & Gabbana brand, as well as manage, through its licensees, the production and distribution of the fragrances, make-up, eyewear, timepieces and jewels lines” (Dolce & Gabbana, 2020a). The brand was founded in Milan by Domenico Dolce, who is of Sicilian origins, and Stefano Gabbana, who is of Milanese origins (Polan & Tredre, 2009). In the mid-1980s, the duo met at a Milanese fashion office where both were employed and the opportunity of their lives arrived in 1985 when they had the possibility of flanking the big names of the Italian fashion industry by participating in a Fashion show as new promising designers (Leitch, 2017; Seabrook, 2005). The initial economic difficulties experienced by the company were overcome by the end of the 1980s after the brand’s fourth and fifth collections were very much appreciated. Those collections were openly inspired by Sicilian culture and colors narrates in Italian old movies as Luchino Visconti’s film “The Leopard” (Polan & Tredre, 2009). The 1990s also marked the growth of the brand in the international market, especially thanks to many international awards and prizes the designers received for their mastery. Just to name few awards, in 1996, the company was named by the English magazine FHM as “Designer of the Year;” in 1997, the US magazine Footwear News awarded the brand with the title of best shoe designer; the following year, the company received the “Style Award” from Harper’s Bazaar Russia (Indobase.com, 2020). The expansion and the increasing international recognition of the brand were also assured by collaborations with famous artists. One of the most recognized collaboration was the one Dolce & Gabbana established with the singer Madonna, for whom the fashion duo realized scene costumes for numerous shows as the Erotica tour in 1992, or the movie “Truth or Dare: in Bed with Madonna” presented at Cannes festival in 1990 (Deloeuvre, 2017). The collaboration of Dolce & Gabbana with performers and artists testifies the interest of the company in arts and culture. This interest culminates in the renovation of a former Milanese cinema called the Metropol in September 2005; this multipurpose space hosted since its opening a series of events, starting with the exclusive “Blo-Glo” exhibition by Ron Arad in April 2006, a collaboration repeated in 2007 with an exhibition of the same artist called “Bodyguard” (Gordongallery, 2020). Through the years this reshaped cinema of the 1940s became an important cultural spot for the city of Milan, as well as the principal space dedicated to Dolce & Gabbana’s runways (Beghin, 2019).

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In 2011, the company announced the closure of the D&G brand. All the collections will be represented under the name of Dolce & Gabbana. Shortly after the statement of this huge transformation, they announced a new project called Alte Artigianalità (Alexander, 2011). In 2012, the Alte Artigianalità (High Artisanat) project began with the creation of Haute Couture lines for both men and women, while the High Jewelry line was added in 2014. These lines are the embodiment of the luxury proposed by Dolce & Gabbana. Exclusive clothes and unique pieces are crafted for a selected group of clientele by the hands of Italian masters and tailors from unique materials. The clothes manufactured for the Alta Artigianalità collections are often united through a form of storytelling that harkens back to the colors and scents of Sicily (McLaughlin Duane, 2017). The artforms strictly anchored with the territory of Sicily are recounted by Domenico Dolce and Stefano Gabbana to nurture the exclusivity of their brand.

9.2.1

Dolce & Gabbana and the Arts

Brand managers need to make their products authentic and timeless, able to represent their heritage and bringing it to the center of the value chain (Mancinelli, 2014). Considering the rather recent foundation of Dolce & Gabbana and so the difficulty of building a myth around the lives of the brand’s founders, the process of sacralization of the brand takes place differently. The narrative of the past inheritance is expressed for Dolce & Gabbana in the use of symbols and recurrent images linked to Sicily (Dolce & Gabbana, 2020b). It is, therefore, an invented legacy, given that the brand was conceived and developed in Milan; but if a brand is not able to identify places in which to construct this process of mythization, then they should trace some mythical places and link them to the myths of the brand (Dion & Borraz, 2015). This is exactly what the designers did with Sicily as an invaluable plus for a brand like Dolce & Gabbana, whose history is quite recent compared to other luxury brands. Real territorial roots are lacking for this brand, and so the spatial characterization that we find in other luxury brands like Hermès, Louis Vuitton, and Prada. By exploiting the link with Sicilian culture and local art, the brand is indeed deeply focused on young generations. The designers use the mythicization of inheritance to create a dialogue between the old and new generations who are in the front rows and on the catwalks of fashion shows and with whom the brand communicates through the strategic use of social networks such as Instagram and Twitter (Giudici, 2017; Persivale, 2017). Fundamental to this strategy is the use the brand makes of symbols to convey consistency over time. The revival of the cultural heritage refers to pure and authentic values linked to the popular tradition.

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The use of legacy is what makes Dolce & Gabbana authentic. First of all, brand authenticity is understood as the use of real symbols that are actually linked to history and the tradition of a specific place (Grayson & Martinec, 2004). Dolce & Gabbana products are authentic and iconic because they are realized through the use of ancient and elaborate techniques and because at the center of these products is a link to the past world combined with exquisite art (Grayson & Martinec, 2004). Dolce & Gabbana brand makes its cultural heritage a foundation of its identity in that we can trace the use of the attributes defined by Urde, Greyser, and Balmer (2007) to talk about a heritage brand. First of all, the values of craftsmanship, Sicilian heritage, and respect and collaboration with the arts have always been linked to the brand’s image. Thus, consistency has been maintained within the value chain while credibility and customer trust have been gained. These values have remained a constant guide for the work of the company. For this reason, the symbols to which the brand refers are the same as those used from the beginning (the reference to the movie The Leopard is an obvious example) (Polan & Tredre, 2009). These contributions have made it possible to identify the contexts in which the link between Dolce & Gabbana, Sicilian art, and cultural heritage has manifested: in collections, promotional campaigns, newly built stores, and in haute couture fashion shows since 2012 (Dolce & Gabbana, 2020a, 2020b). Therefore, it is clear that the link with tradition is not only a value that guides the work of the two designers; it is also a concept that clearly conveys to the consumer. It is precisely the communication of this bond that makes the Dolce & Gabbana product authentic. Indeed, the link with popular art unfolds through numerous practical implications for the consumer, such as the collections that constantly refer to Sicilian art and traditions—a source of inspiration for designers since the birth of the fashion house—the promotional campaigns that constantly use Sicilian art and tradition, the focus of new stores on art through collaborations with world-renowned architects, and through the perception of this artistry in a new and exclusive perspective conceived by the brand (Dolce & Gabbana, 2020a, 2020b, 2020c). The symbols to which the brand refers are mainly the Sicilian tradition and popular art and culture. They are recurrent decorations taken from Sicilian carts, as well as from the tiles of the domestic environments (Dolce & Gabbana, 2020b, 2020c). Sicilian literature, mainly through the novel Il Gattopardo by Giuseppe Tomasi di Lampedusa and the film adaptation of Luchino Visconti, is the supreme symbol of the fashion house. The narration of Dolce & Gabbana’s Sicilian artistic roots culminates in their exclusive stores, were is observable a process of “sacralization,” understood as a process in which a certain group—in this case, consumers—sacralizes, identifies with, and institutionalizes a particular place through myths, rituals, and prohibitions (Dion & Borraz, 2015). A myth is built around the brand, which is configured as being attentive to art and devoted to beauty, as the vehicle of exclusive experience in a land and a culture that belongs to an imaginative past but that is completely projected into the future.

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Chapter 10

Discussion and Conclusion

Abstract The main systematic literature review at the basis of the realization of this book lead to the recognition of six research strands ascribed to the area of analysis labeled Art and Business. Every research line highlights the beneficial effect of this relationship, while the first research strand concentrates on the different possibilities artists or arts managers, and companies have to create an Art and Business partnership. A focus on the luxury industry and the neologism of artification is then furtherly described, due to the importance faced during the literature review.

10.1

Discussion and Conclusion1

The literature examined proves that the intersection between Art and Business represents a well-established reality, mainly in the US territory but going global now. The founder of IBM, Thomas J. Watson, was a forerunner who laid the foundation of the mutual relationship between Art and Business through the definition of policies for corporate collections management that are still in force today (Behnke, 2007; Martorella, 1996). In addition to art collections created and managed by enterprises, it must be mentioned the activities of philanthropy and sponsorship of the arts by US companies. These activities, together with government support and individual donors, have given rise to a rich and complex support system for the arts that is one of the basic motivations for the vibrancy of the artistic and cultural American environment (Mulcahy, 1999; Wu, 2003). Later, the tactics of intersection between Art and Business began to take root across Europe, mainly due to the implementation of the strategies put in place by local subsidiaries of American multinationals (Comunian, 2008, 2009; McIsaac, 2007; Morel, 2005; Sauvanet, 1999; Stenstrom, 2008). Actually, some European productive sectors were immediately far more active than their American

1 This chapter is revised and updated from the author’s dissertation Art & Business from sponsorship and philanthropy to the contemporary process of artification, Sorbonne U. and Macerata U. completed in 2016.

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2020 S. Masè, Art and Business, International Series in Advanced Management Studies, https://doi.org/10.1007/978-3-030-51769-4_10

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counterparts about the creation and management of art collections (Behnke, 2007; Kottasz, Bennett, Savani, Mousley, & Ali-Choudhury, 2007; Kottasz, Bennett, Savani, Mousley, & Ali-Choudhury, 2008; Lindenberg & Oosterlinck, 2011), while the activities of sponsorship and philanthropy continued to remain firmly anchored to the American models. Having been designed and applied in a cultural context different from Europe, it is no coincidence that supporting the arts from private sources should present difficulties. It is awkward for cultural and artistic government policies to coexist, as they are centralized, as is the case in European states (McIsaac, 2007; Morel, 2005; Sauvanet, 1999; Stenstrom, 2008). Both in Europe and the USA, these business strategies in support of the arts are still put into place by companies for communication purposes, primarily with the intent to improve the perception of the company’s social responsibility towards its community and, therefore, it is meant to enhance their corporate image (Bloch, 1989; Dell’Era, 2010; Kawashima, 2012; Killacky, 1998; Kottasz et al., 2007, 2008; Preece, 2010). Arts sponsorships and all other business activities related to arts support such as philanthropy (Alexander, 1996; Alexander, 2014; Kressner Cobb, 2002; French, 1991; Jeffri, 1989; Moir & Taffler, 2004; Ulibarri, 2000) or corporate collections (Behnke, 2007; Cassullo, 1988; Hoeken & Ruikes, 2005; Kottasz et al., 2007, 2008; Lindenberg & Oosterlinck, 2011; Roodhouse, 1997; Yoon & Shin, 2014) do not reach the fame and the frequency of sports sponsorship (Meenaghan, 2013). However, they have developed considerably over the past decades and seem to be experiencing renewed interest by now. If one focuses solely on the Parisian reality, one may take the example of the new Louis Vuitton Foundation, inaugurated on October 27, 2014 (Lvmh, 2014) or of the La Fayette Foundation for contemporary art which inaugurated in 2018 (La Fayette Anticipations, 2019). In Italy, it is worth mentioning the inauguration of the new headquarters of the Prada Foundation in Milan on May 9, 2015 (Design Boom, 2015). This interest in Art and Business led us to drafting the research question that guided the development of our analysis and that is now listed and detailed, for the greater convenience of analysis. Q1. Do firms belonging to different industries connect with the arts for their strategic purposes? The longstanding relationship between Art and Business has begun to take on strategic dimensions around the 1980s, mainly in the USA, before spreading to other countries (Durand, Gouveia, & Berman, 1996; Sauvanet, 1999; Morel, 2005, McIsaac, 2007; Stenstrom, 2008; Comunian, 2008, 2009; Kawashima, 2012). Through the research question, we then analyze the relationship from a managerial perspective. The first part of the book has thus been totally focused on a Systematic literature review, with the wish to fill an epistemological gap, namely a gap in the academic and operational understanding of the Art and Business relationship.

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Discussion and Conclusion

139

The object of the study was defined in terms of the relations between private companies and the visual arts, thus excluding an analysis of public policies, unless such policies expressly promoted relations between the private companies and the visual arts. The Systematic Review of the Literature that we carried out (Briner & Walshe, 2014; Dietz et al., 2014; Nutley, 2003; Nutley, Davies, & Walter, 2002; Smith, Nutley, & Davies, 2000) showed the existence of six subcategories inherent in this research topic, outlining an Art and Business relationship that can materialize through different types of relationship: 1. 2. 3. 4. 5. 6.

Art and Business: a relational model. Art and Corporate Social Responsibility. Art and Communication. Art and Cross-Cultural Business. Art and Business Collections. Art and Consumer Perception.

If the research strands 2–6 illustrate the main objectives pursued by the companies that decide to apply an Art and Business strategy, the first line of research describes the possible models that can be used to build up a form of relationship between the art and business. From a diachronic perspective, the literature review has shown that the first Art and Business relationships were based primarily on philanthropy, sponsorship, or art collecting activities that evolved into more complex structures (Bloch, 1989; Kressner Cobb, 1996; dell’Era, 2010; Killacky, 1998; Preece, 2010; Reiss, 1989; Van der Burg, Dolfsma, & Wilderom, 2004; Weinstein & Cook, 2011; Wyszomirski, 1996; Zolberg, 2000; Zorn & Koidl, 1991). Through time, the investments of companies in sustaining the arts transformed into more sophisticated forms of relationship, or long-lasting partnerships. The two counterparts of Art and Business gained the same power in the relationship, the one being in needs of the other; these Art and Business strategical relationship has been also named art-based management (Carlucci & Schiuma, 2018). Moreover, in recent times, some companies have shown the ultimate goal of transforming their products into works of art as well as being recognized as a new art institution (Shapiro, 2004; Shapiro & Heinich, 2012). This strategy has been recently named under the term artification—a term that comes from the mass of sociological studies and refers to a new practice that encourages an art-related experience of “various aspects of our lives normally not associated with art or aesthetics—such as business” (Dissanayake, 2001; Saito, 2012; Shapiro, 2004; Bonsdorff, 2012; Erjavec, 2012; Naukkarinen & Saito, 2012; Shapiro & Heinich, 2012; Heinich & Shapiro, 2012). Through Artification we present the Art and Business relationship as a strategy designed to jointly manage the various possible relationships between the two sectors, including sponsorship, philanthropy, and corporate collections previously

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observed (Dion & Arnould, 2011; Joy, Wang, Chan, Sherry, & Cui, 2014; Kapferer, 2012, 2014; Riot, Chamaret, & Rigaud, 2013). The “artified” company does not simply exploit the benefits of arts for communication or image purposes but tries to become a legitimate member of the artistic milieu in its own right (Kapferer, 2014). Except for the works included in the line of research dedicated to the perception of artistic collaborations by consumers (Vanhaverbeke, 1992; Quester & Thompson, 2001; Ruth & Simonin, 2003; Colbert, D’Astous, & Parmentier, 2005a, 2005b; Lagier & Godey, 2007; Carrillat, D’Astous, & Colbert, 2008; Hagdtvedt & Patrick, 2008a, 2008b; Dalakas, 2009; Megehee & Spake, 2012; Huettl & Gierl, 2012; Wang, Cruthirds, Axinn, & Guo, 2013; Lee, Chen, & Wang, 2015), other research articles were dedicated to the analysis of one of the many points of contact building between Art and Business. For example, the modality through which it is created the art collection by the company is likely to be analyzed; or the implementation of sponsorship activities or other activities in support of the arts. But in all cases, the analysis focuses on a point of contact between Art and Business at a given time, hardly ever observing the combined effects of different relational activities that the company can weave with the arts sector. Reinforcing the image appears to have been the main objective behind collaborative strategies with the arts, whether it be philanthropy, sponsorship, or art collecting, or whether this relates to more refined relational forms such as those of artification. The articles in the subcategory of the literature called “Art and Consumer Perceptions” highlighted the importance of using art to stimulate a positive perception of the products and brands related to a particular company (Carrillat et al., 2008; Colbert et al., 2005a, 2005b; Dalakas, 2009; Hagdtvedt & Patrick, 2008a, 2008b; Huettl & Gierl, 2012; Lagier & Godey, 2007; Lee et al., 2015; Megehee & Spake, 2012; Ruth & Simonin, 2003; Quester & Thompson, 2001; Vanhaverbeke, 1992; Wang et al., 2013), but other research studies aimed at highlighting the importance of art strategies for the improvement of the company image had also been located in other areas of research (Bloch, 1989; Brennan, Binney, & Brady, 2012; Dell’Era, 2010; Hetsroni & Tukachinsky, 2005; Hoeken & Ruikes, 2005; Kawashima, 2012; Kottasz et al., 2007, 2008; Lindenberg & Oosterlinck, 2011; Martorella, 1996; McNicholas, 2004; Moir & Taffler, 2004; Pappu & Cornwell, 2014; Roodhouse, 1997; Sauvanet, 1999; Thompson, 2005; Turgeon & Colbert, 1992; Van der Burg et al., 2004; Wu, 2003). The literature review conducted to respond to the research question has therefore allowed us to highlight some other points: 1. Art and Business provides different modes of a relationship also labeled art-based management (Carlucci & Schiuma, 2018). 2. The main objective behind the Art and Business relationship is to improve the brand image as perceived by the consumer.

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3. The concept of artification identifies an Art and Business relational strategy that provides the joint management of various relationships that can be initiated between the two parties, to facilitate the transformation of companies and products in art forms. 4. The artification strategy has the most impact on business belonging to the luxury industry, although it can be partially used by companies from other industries and other sectors. French scholar Jean-Noël Kapferer suggests that we use the term artification in the luxury sector (Kapferer, 2014). He claims that the main architects of the implementation of this fusion process between the art world and the world of business are mainly companies operating in fashion luxury which are driven by strategic goals pressured to justify the premium price applied to their products (Kapferer, 2014; Riot et al., 2013). In reason of the importance of luxury industry in the Art and Business relationship analysis, we create different case studies (one per each literature strand) taking inspiration from companies and brands belonging to the luxury industry, respectively LVMH, Tiffany, Gucci, Hermès, Prada, and Dolce & Gabbana. In our view, if the Art and Business strategical relationship can be applied by businesses belonging to many diversified sectors, this strategy attains its maximum level of expression when deployed by luxury businesses, culminating in the artification strategy used by luxury companies to ensure a perception of lavishness in their target audience. Firms in the fashion industry, belonging to the luxury sector, are moving further away from the concept of Handicraft Company able to master manual techniques to produce unique goods of very high quality. It is well known by consumers that luxury brands companies are increasingly owned by large financial conglomerates such as LVMH (Louis Vuitton-Moët Hennessy), Kering, or Richmond. These financial groups tend to resemble large financial firms rather than small craft-based firms suitable for creating customized objects produced in limited numbers. Because luxury brands belong to such financial conglomerates, they are faced with a loss of confidence on the part of consumers who are increasingly informed and critical. Since they have now become more like brands than craft enterprises (Kapferer, 2014), companies in the luxury sector are faced with the challenge of preserving their public image. What is most striking is that luxury companies belonging to the fashion industry, share many similarities with the visual arts. They are actually part of the world of visual arts as well as part of large financial conglomerates: this double belonging manages to match the right economic and cultural support needed for the application of an art-based strategy.

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Other researchers have observed that the art-based management perspective or the artification strategy is also applicable to many other sectors, such as the food industry being just one of them (Cohen & Csergo, 2012). Companies such as Benetton and Diesel use a strategy of contamination with the arts that are in every way comparable to the one implemented by true luxury companies, such as Louis Vuitton (Kapferer & Bastien, 2009). Despite the interest in the luxury industry is growing in recent years, the systematic literature review also shed light on the fact that diverse industries have used this type of strategy for a long time to strengthen their corporate image, mainly through corporate art collections (Behnke, 2007; Cassullo, 1988; Hoeken & Ruikes, 2005; Kottasz et al., 2007, 2008; Lindenberg & Oosterlinck, 2011; Roodhouse, 1997; Yoon & Shin, 2014). This perspective is sustained by recent articles. Art can strengthen the existing prestigious perception (Hetsroni & Tukachinsky, 2005; Lee et al., 2015). The art-based management strategy has exactly the dual purpose of improving the brand image of companies that apply it while increasing the perception of luxury in end consumers. The arts which were famously said to be in a gaseous state (Michaud, 2003) have no clear boundaries of the kind outlined in typical pre-modern eras. Their current borderlessness, their ability to evade an ontology that would define art once and for all is perplexing to many less-informed consumers and world audiences. However, their newly gained flexibility allows an exchange between art and nonart, with the creation of win-win relationship forms.

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