A contingency approach to international marketing strategy and decision‐making structure among exporting firms

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 strategystructure-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 (standardizationdecentralization); 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.

Looking Back to Move Forward: A Review of the Evolution of Research in International Marketing Channels

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Entrepreneurial orientation and firm performance: How can micro, small and medium-sized enterprises survive environmental turbulence?

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Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions

“…The core of a business's projected image is its brand identity, which is reflected by its adopted name, logo, colour, slogan and typography (Melewar & Saunders, 1998). The decisions towards the adoption of branding standardization/adaptation strategies have stimulated considerable interest among academics and others with regard to the formulation of appropriate international marketing strategies (Cavusgil & Zou, 1994;Chung, Lu Wang & Huang, 2012;Demetris et al, 2009;Jain, 1989;Okazaki, Taylor & Zou, 2006;Theodosiou & Leonidou, 2003). For example, Rosson and Brooks' (2004) study found that, in 80% of cases, the targets assumed the acquirers' brand identities.…”