Competing perspectives in international marketing strategy: Contingency and process models

Empirical studies investigating the relationship between marketing standard ization and performance have generated mixed results. This study investigat es the causal ordering between marketing strategy and marketing structure a s determinants of subsidiary performance. The authors propose a multiple co ntingencies approach that tests both the contingency (e.g., Chandler 1962) and the process (e.g., Bower 1970) frameworks in the subsidiary context. Fi ndings based on a two-phase longitudinal study provide initial support for the framework that suggests that marketing structure follows marketing stra tegy. In response to increased target market similarity, companies in the s tudy opted for more standardized marketing strategies. Furthermore, central ization of structure mediated the relationship between marketing strategy a nd subsidiary performance. The performance impact of centralization, howeve r, was cross-lagged and negative. Results suggest adapting marketing strate gies to local markets as a way of enhancing performance.