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Purpose

The purpose of this paper is to examine the latest development of a crucial sub‐area within the field of corporate identity (CI): the interface between CI and strategy. Moreover, this paper presents the marketing implications of identity/strategy interface.

Design/methodology/approach

This research is based on both pertinent literature and a recent grounded theory case study on the interplay between identity and strategy,

Findings

The findings from literature review suggest that more theoretical and empirical studies are essential to advancing CI/strategy interface, whose progress in turn is critical to the field of corporate identity and corporate level marketing. The case study finds that: CI/strategy dissonance is a key construct to examine CI/strategy interface; and managers utilise a range of defence mechanism to make sense of CI/strategy dissonance.

Originality/value

Corporate identity research has paid generous attention to the potential mismatch between identity‐image, identity‐communication, identity‐culture, but limited attention has been directed to the potential breakdown of the CI/strategy link. The study suggests that companies should pay more attention to the potential negative effect of their market strategies, such as market choices and diversification, on identity and image. On the other hand, the dissonance between identity and strategy could be great opportunities for proactive reputation management and organizational change.

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