Publication: Competing perspectives in international marketing strategy: contingency and process models
Program
KU-Authors
KU Authors
Co-Authors
Prussia, GE
Publication Date
Language
Type
Embargo Status
Journal Title
Journal ISSN
Volume Title
Alternative Title
Abstract
Empirical studies investigating the relationship between marketing standardization and performance have generated mixed results. This study investigates the causal ordering between marketing strategy and marketing structure as determinants of subsidiary performance. The authors propose a multiple contingencies approach that tests both the contingency (e.g., Chandler 1962) and the process (e.g., Bower 1970) frameworks in the subsidiary context. Findings based on a two-phase longitudinal study provide initial support for the framework that suggests that marketing structure follows marketing strategy. In response to increased target market similarity, companies in the study opted for more standardized marketing strategies. Furthermore, centralization of structure mediated the relationship between marketing strategy and subsidiary performance. The performance impact of centralization, however, was cross-lagged and negative. Results suggest adapting marketing strategies to local markets as a way of enhancing performance.
Source
Publisher
American Marketing Association (AMA)
Subject
Business
Citation
Has Part
Source
Journal of International Marketing
Book Series Title
Edition
DOI
10.1509/jimk.8.1.27.19561