Structure of marketing decision making and international marketing standardisation strategies

Abstract

Purpose

Research concerning marketing standardisation is still developing. A new research theme has recently emerged, wherein it is suggested that the structure of marketing decision making is likely to be a factor of marketing standardisation strategy. This study aims to add insights to this new research field. Based on the outcome of previous studies, it aims to propose and test a research framework concerning the relationships among environmental factors, the structure of decision making and marketing standardisation/performance. This study seeks to focus on the two most important programme elements: promotion and product.

Design/methodology/approach

The study used the experience of 78 firms operating in the European Union (EU) region to achieve its research objectives. The data used were collected through a postal survey. This analysis used both partial least square (PLS) and hierarchical regression analysis methods to examine its research framework.

Findings

The study has generated a framework for future research. It is suggested that, with the absence of direct influence, the structure of decision making is still likely to have an indirect effect on marketing standardisation strategy. Although a path relationship is unlikely to exist between environmental factors, the structure of decision making and performance, the joint effect between environmental factors and the decision‐making structure on performance is confirmed. The outcomes of the study suggest that, through careful selection, firms adopting a high and low degree centralisation structure can benefit from operating in a similar high/low environment, as well as in a country with high/low market size and potential.

Originality/value

The study's findings have enhanced those uncovered by other researchers. A number of implications can be drawn for these findings.

Citation

Chung, H.F.L. (2009), "Structure of marketing decision making and international marketing standardisation strategies", European Journal of Marketing, Vol. 43 No. 5/6, pp. 794-825. https://doi.org/10.1108/03090560910947052