International marketing decision governance, standardisation, and performance: A framework in the cross‐market scenario

Abstract

Purpose

The purpose of this paper is to establish a decision‐making governance framework for transferring a product/service from one EU host market to another.

Design/methodology/approach

Prior research concerning the relation between marketing decision governance (centralised versus decentralised) and standardisation strategy/performance tends to focus on the home‐host scenario. This study has utilised the experience of 70 firms operating in the cross‐market scenario in the EU region – i.e. transferring a product/service from one EU host market to another – in order to establish its decision‐making governance framework. The respondents were operating in both the manufacturing and service sectors.

Findings

It was found that firms with large size and a high level of business experience, operating in a similar cross‐market environment, or in a country pair that has a difference in market potential, are more likely to pursue a decentralised governance. Firms operating in a highly different market environment and in host markets with a high variation in market potential are likely to adopt an adaptation strategy. Marketing decision governance is not suggested to be related to standardisation strategy. Decentralised governance is found to be related to profitability, while adaptation was associated with market share. Market share is related to profitability.

Originality/value

The research findings suggest that firms can utilise their decision‐making and standardisation strategy separately to achieve their performance objectives when operating across the EU region. The outcomes established in the study have provided a new guidance on the research concerning structure, strategy and performance.

Citation

Chung, H.F.L. (2010), "International marketing decision governance, standardisation, and performance: A framework in the cross‐market scenario", European Journal of Marketing, Vol. 44 No. 11/12, pp. 1642-1666. https://doi.org/10.1108/03090561011079828