Search results
1 – 10 of 211Prior studies on product standardization–adaptation in multinational corporations (MNCs) have revealed environmental factors that can influence the choices of MNCs. However, these…
Abstract
Purpose
Prior studies on product standardization–adaptation in multinational corporations (MNCs) have revealed environmental factors that can influence the choices of MNCs. However, these studies have not shown how these choices are made behind the scenes in new product development (NPD). In many industries, MNCs face the dual pressures for product standardization and adaptation from the environment. This study aims to explore how MNCs facing dual pressures can make choices of product standardization–adaptation in NPD.
Design/methodology/approach
A qualitative case study of four high-performing MNCs was conducted. The four MNCs were selected using the theoretical sampling approach. Data were collected, mainly through 74 semi-structured interviews. Coding was conducted and four aggregate dimensions were generated.
Findings
This study reveals that choices of product standardization–adaptation are made through a process in MNCs’ NPD, including four steps – organizing for NPD, organizational diversity, cross-unit integration and combination of design practices. In addition, MNCs adopt different process variants to address different environmental pressures.
Research limitations/implications
This research focuses on high-performing MNCs in manufacturing industries. Future research can explore different types of firms.
Practical implications
Managers in MNCs should focus more on the process of choices for product standardization–adaptation, than on the level of product standardization–adaptation. They should also keep monitoring the environmental pressure and employ experienced engineers.
Originality/value
By focusing on NPD, the authors shift the attention from product standardization–adaptation to product feature standardization–adaptation in MNCs, which is a fresh and refined perspective. The authors show a process in NPD composed of activities and mechanisms that managers might use for handling product standardization–adaptation challenges in MNCs. The authors contribute to the area of cross-unit integration in MNCs’ NPD by revealing mental mechanisms for mitigating tensions in cross-unit interactions.
Details
Keywords
John K. Ryans, David A. Griffith and Subhash Jain
International advertising standardization/adaptation has been a dominant area in the international marketing literature. In this chapter, we explore the evolution of thought…
Abstract
International advertising standardization/adaptation has been a dominant area in the international marketing literature. In this chapter, we explore the evolution of thought related to international advertising standardization/adaptation beginning in the 1920s. Through a stage theory historical analysis, we decompose thought in international advertising standardization/adaptation into three unique stages: (1) practitioner evolution, (2) scholarly initiation and (3) conceptual and empirical refinement. Given this approach, we contend that the factors considered in earlier stages were necessary for later development. Further and more importantly, we argue that, for the evolution of thought in relation to international advertising standardization/adaptation to evolve, researchers must begin to engage in a number of acts central to building a unified foundation. We propose a series of issues that need to be addressed in order to advance our understanding of international advertising standardization/adaptation.
Sunil Venaik and David F. Midgley
This paper aims to identify the archetypes of marketing mix standardization-adaptation in MNC subsidiaries and to examine the relationships between MNC subsidiary strategy…
Abstract
Purpose
This paper aims to identify the archetypes of marketing mix standardization-adaptation in MNC subsidiaries and to examine the relationships between MNC subsidiary strategy, environment and performance through the theoretical lenses of fit and equifinality.
Design/methodology/approach
The authors use a mail survey to collect data from MNC subsidiary business units located in multiple countries. They apply a novel archetypal analysis method to identify the diverse archetypes of marketing mix standardization-adaptation in MNC subsidiaries. Finally, through cross-tabulation and regression analysis, they examine the relationships between MNC strategy, environment and performance.
Findings
They identify four archetypes of MNC subsidiary standardization-adaptation including a new archetype that is not recognized in the literature. This analysis finds partial support for both fit and equifinality, suggesting complementarity between the two theories.
Research limitations/implications
The study could be extended with longitudinal data to examine the dynamics in MNC marketing mix strategy and performance in response to the changing business environment.
Practical implications
The findings suggest that MNC subsidiary managers could deploy a broader set of international marketing strategy configurations than those currently prescribed to enhance performance.
Originality/value
The authors use a novel configuration-based archetypal analysis method and extend the theoretical typology of international marketing strategies pursued by MNC subsidiaries. The partial support for both fit and equifinality expands the theoretical lens through which we can examine the relationships between MNC marketing strategy, environment and performance.
Details
Keywords
Henry F.L. Chung, Cheng Lu Wang and Pei‐how Huang
Although the relation between standardization/adaptation strategy and performance has been extensively examined in the international marketing literature, the findings concerning…
Abstract
Purpose
Although the relation between standardization/adaptation strategy and performance has been extensively examined in the international marketing literature, the findings concerning these factors are still inconclusive. The conflicting results might relate to the analysis approach adopted in prior research, which tends to focus on the direct effect of marketing strategies. By utilizing the contingency theory, the purpose of this paper is to uncover the moderation factors for the strategy‐structure‐performance paradigm in the export sector. Internal, external and product‐related factors are explored.
Design/methodology/approach
This study focuses on four strategy and structure combinations: The global approach (standardization‐centralization); the glocal approach (standardization‐decentralization); the regcal approach (adaptation‐centralization); and the local approach (adaptation‐decentralization). The interactive effect of the four approaches and a set of contingent factors are examined based on the experience of 151 exporting firms operating in the EU region. The respondent firms operate in various manufacturing and service industries.
Findings
It is revealed that firm size, international business experience, consumer characteristics, the legal environment, cultural distance and the nature of the products play a moderating role between a firm's adoption of a particular approach and its performance, as measured by market share and sales growth, dependent on the relevant marketing program elements (i.e. product, price, promotion and place).
Originality/value
The research findings presented in the paper have significant implications for future research and strategic application.
Details
Keywords
John K. Ryans, David A. Griffith and D. Steven White
For over 40 years academicians and practitioners have debated the standardization versus adaptation of international marketing strategy. Despite the importance of, and tremendous…
Abstract
For over 40 years academicians and practitioners have debated the standardization versus adaptation of international marketing strategy. Despite the importance of, and tremendous interest in the topic, and the volume of scholarly activity this topic has generated, the debate remains unresolved. Why? Here, it is argued that the last 40 years of scholarly research has advanced without a strong underlying theoretical framework. The historical foundations of the standardization/adaptation perspective are presented, followed by a critical evaluation of the field under the guiding framework of the fundamentals of theoretical construction. Suggestions for developing a stronger theoretical foundation, as well as directions for future research are addressed.
Details
Keywords
Focuses on the issue of product standardization versus adaptation, with special reference to the practices of Japanese multinational companies (MNCs) operating in the Middle East…
Abstract
Focuses on the issue of product standardization versus adaptation, with special reference to the practices of Japanese multinational companies (MNCs) operating in the Middle East. Reveals that the degree of adaptation of Japanese goods is generally moderate, with labelling, packaging and internal features attracting most alterations. Product adaptations were more profound among firms producing consumer goods, as well as those having a long presence in the Arab market. Also suggests that the impact of factors affecting the standardization/ adaptation decision differed according to the specific product aspect, with demographic and political‐legal forces being the most influential overall. With respect to future product strategy, participant firms stated that they would proceed more or less as at present, the only exception being some additional adaptations as regards external characteristics of the product.
Details
Keywords
Rekha Rao-Nicholson and Zaheer Khan
The recent increase in the presence of emerging market firms (EMFs) in global markets requires a closer examination of their international marketing strategies (including…
Abstract
Purpose
The recent increase in the presence of emerging market firms (EMFs) in global markets requires a closer examination of their international marketing strategies (including branding). The purpose of this paper is to examine the factors behind the standardization or adaptation of global marketing strategies adopted by EMFs for their cross-border acquisitions.
Design/methodology/approach
This paper examines the determinants of the marketing strategies adopted by Indian and Chinese firms for their cross-border acquisitions. The drivers of the standardization/adaptation of marketing strategies (including branding) are identified using both quantitative data collected in 168 cross-border acquisitions conducted by the EMFs mentioned above and the institutional theory and organizational identity literature.
Findings
Institutional factors have a stronger effect than organizational identities on global marketing strategies, including branding. The standardization of the EMFs’ marketing strategies is driven by the private statuses of the acquirers, legal distances, target countries’ economic development, and the ethnic ties that exist between the home and host countries. The acquirers’ decisions to retain the targets’ brand identities, thus adapting their global marketing strategies, are related to the cultural distances, economic freedom distances, and sizes of the targets.
Research limitations/implications
In this study, two large emerging markets – India and China – are used to gather the empirical data; future works can expand upon this line of research and examine other EMFs.
Practical implications
The acquiring companies have to decide whether to adopt an adaption marketing strategy, with reference to the acquired targets’ local stakeholder requirements, or to incorporate their targets’ brands into their own global marketing strategies.
Originality/value
Typically, previous work on the adaptation vs standardization of global marketing strategies adopted in the wake of cross-border deals has focussed on acquisitions involving companies from developed countries; this paper extends the field of research to the EMFs of two of the most important developing countries: China and India.
Details
Keywords
David A. Griffith, Hannah S. Lee, Chang Seob Yeo and Roger Calantone
The purpose of this paper is to explore the marketing “processes” of governing multiple export relationships under the theoretical framework of governance value analysis (GVA)…
Abstract
Purpose
The purpose of this paper is to explore the marketing “processes” of governing multiple export relationships under the theoretical framework of governance value analysis (GVA). Specifically, this work examines the internal exchange attributes of transaction-specific investments and psychic distance on the adaptation/standardization of relational behavior and detailed contracting and how process adaptation/standardization influences new product outcomes and jointly created value in the focal export relationship.
Design/methodology/approach
A survey was conducted of 151 US manufacturers regarding their relationship with their primary foreign buyers. Data were analyzed with partial least squares estimation.
Findings
The results indicate that high levels of transaction-specific investments lead to the adaptation of relational behaviors whereas high levels of psychic distance lead to less adaptation of detailed contracting. The adaptation of relational behaviors and detailed contracting reflect differential direct effects on export performance. Furthermore, the results indicate that there is a significant positive interaction effect between the adaptation of relational behavior and detailed contracting on jointly created value in the focal export relationship.
Practical implications
The findings of the study reveal that adaptation of the marketing process related to relationship governance strategies can play an important role in the export marketing process, but managers must proceed with caution in balancing relational behavior and detailed contract adaptation. The results also point to the importance of understanding the underlying source of uncertainty and adapting appropriate aspects of governance for enhancing jointly created value in the export relationship.
Originality/value
The value of this research lies in its goal to highlight the issue of marketing process adaptation across multiple export relationships. Less attention has been paid to the marketing “processes” of governing multiple export relationships in the international marketing strategy literature relative to “program” standardization/adaptation. This is one of the first empirical studies on marketing process adaptation of governance employing the theoretical framework of GVA.
Details
Keywords
Few empirical studies have probed the effects of culture on the standardization/adaptation decision in the context of controversial products. This study aims to investigate the…
Abstract
Purpose
Few empirical studies have probed the effects of culture on the standardization/adaptation decision in the context of controversial products. This study aims to investigate the relationship between sociosexuality and the adaptation decision for editorial images and advertisements in Playboy magazine through content analysis.
Design/methodology/approach
This study is a qualitative research using content analysis as the research approach. The content analysis is done for Playboy magazines from four culturally diverse countries conducted for this study.
Findings
The result shows that editions of the magazine across four culturally diverse countries reveal that sociosexuality is positively correlated to the degree of nudity in photographs and to the usage of advertising for controversial products. Moreover, the paper uses the concept of sociosexuality to gain a better understanding of the empirical discrepancies concerning nudity or sex appeal.
Originality/value
This research is an empirical study developed by author to confirm the influence of culture on the standardization/adaptation decision in the context of controversial products. This research is originally developed by author and has not been published before.
Details
Keywords
Nanda K. Viswanathan and Peter R. Dickson
To examine issues of standardization and adaptation in global marketing strategy and to explain the dynamics of standardization.
Abstract
Purpose
To examine issues of standardization and adaptation in global marketing strategy and to explain the dynamics of standardization.
Design/methodology/approach
This is a conceptual research paper that has been developed based on gaps in prior frameworks of standardization/adaptation. A three‐factor model of standardization/adaptation of global marketing strategy was developed. The three factors include homogeneity of customer response to the marketing mix, transferability of competitive advantage, and similarities in the degree of economic freedom.
Findings
The model through the use of feedback effects explains the dynamics of standardization.
Research limitations/implications
Future research needs to empirically test the model. To enable empirical validation, reliable and valid measures of the three factors proposed in the model need to be developed. Additionally, the model may be used in future research to delineate the impact a variable may have on the ability of a firm to follow a standardized global marketing strategy.
Practical implications
The three‐factor model aids decisions relating to standardization in a global marketing context.
Originality/value
The paper furthers the discussion on the issue of standardization. Through the identification of three factors that impact standardization/adaptation decisions, and the consideration of feedback effects, the paper provides a foundation for future research addressing the issue.
Details