The Link between Standardization/Adaptation of International Marketing Strategy and Company Performance

Authors

  • Regina Virvilaite Kaunas University of Technology
  • Beata Seinauskiene Kaunas University of Technology
  • Giedre Sestokiene Kaunas University of Technology

Keywords:

international marketing strategy, standardization, adaptation, company performance, generic strategies

Abstract

Most scientific studies concentrate on factors that impact the choice of a certain strategy, and they seek to identify forces that stimulate standardization or adaptation. But the validity of the choice of standardization or adaptation strategy is determined by its potential to improve company performance (Samie & Roth, 1992). Jain (1989) states that suitability of an international marketing strategy is confirmed by the strategy's influence on the company performance - economic and strategic benefit, received due to implementation of the chosen strategy.Although the factor of company's performance should be one of the most important ones when making the strategic decision of standardization/adaptation, according to scientists, this issue has been researched empirically the least, and results of performed research works are contradictory (Katsikeas, Samiee & Theodosiou, 2006). Therefore, the link between standardization/adaptation of international marketing strategy and company performance remain a topical object of the scientific research.The problem in this article is formulated with the help of the following ąuestion: is there any link between standardization/adaptation decisions of international marketing strategy and company performance?The aim of the article is to develop a theoretical model of the link between standardization/ adaptation decisions of international marketing strategy and company performance and to test it empirically. Seeking to realize the set task, research was performed using methods of systematic and comparative analysis of scientific literature. Empirical verification of the theoretical model was performed using the case analysis method.Identified internal organisational and external environmental factors, which limit standardization/ adaptation decisions of international marketing strategy, are presented in the article based on the analysis of scientific literature. Reviewing research of this subject, causality direction is analyzed and the link between standardization/adaptation decisions of international marketing strategy and company performance is substantiated. The performed analysis of scientific literature has shown that the link between standardization/ adaption and company performance is reciprocal and complicated; possibly it is influenced by other forces, such as Porter's (1980) generic strategies.Based on literature analysis a theoretical model of the link between standardization/adaptation decisions of international marketing strategy and company performance was composed. The model encompasses external and internal antecedent factors that condition the decision to standardize or adapt and outcomes of standardization/ adaption as well as the influence of the generic strategy on the standardization/ adaptation decisions of international marketing strategy and company performance. The model reveals that company performance may be not only the outcome of standardization/adaptation decisions, but also an antecedent of these decisions. The generic strategies have a direct and indirect (acting through the international marketing strategy) impact on company performance.Analysis of the case of LENZE Group revealed that applied standardization/ adaptation and cost leadership/differentiation strategies when they are adjusted do complement each other and their strategic goals are not confronting. This partially negates theoretical assumptions that adaptation is compatible with the differentiation strategy, and standardization is compatible with cost leadership strategy, and this reveals that other combinations of strategic decisions are also possible, conditioning the improvement of company performance.

http://dx.doi.org/10.5755/j01.ee.22.1.223

Additional Files

Published

2011-01-19

Issue

Section

COMMERCE OF ENGINEERING DECISIONS