When does international marketing standardization matter to firm performance?

Oliver Schilke, Martin Reimann, Jacquelyn S. Thomas

Research output: Contribution to journalArticlepeer-review

85 Scopus citations

Abstract

The topic of standardization of international marketing programs represents an important issue faced by managers of global firms and has attracted significant research attention. Although previous research has established that standardization enhances performance outcomes, more recent theorizing suggests that this may not always be the case. However, empirical investigators have paid little systematic attention to moderating conditions. The major purpose of this article is to investigate the organizational factors that moderate the standardization-performance relationship and, thus, to explore the types of firm for which standardization is particularly beneficial. The authors examine survey data from 489 firms, and their results indicate that the standardization-performance link is significantly stronger for large firms with a homogeneous product offering, high levels of global market penetration, a cost leadership strategy, and strong coordination capabilities. The authors conclude that managers evaluating the adequacy of a standardization strategy should consider the list of contingencies advanced in this research.

Original languageEnglish (US)
Pages (from-to)24-46
Number of pages23
JournalJournal of International Marketing
Volume17
Issue number4
DOIs
StatePublished - Dec 1 2009
Externally publishedYes

Keywords

  • Marketing strategy
  • Performance
  • Second-order factors
  • Standardization
  • Structural equation modeling

ASJC Scopus subject areas

  • Business and International Management
  • Marketing

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