Advertising standardization in multinational corporations: The subsidiary perspective

Abstract

This study examines the relationship between patterns of advertising program standardization in the subsidiaries of multinational corporations (MNCs) in four countries. The data are gathered from wholly owned subsidiaries of U.S., European, and Japanese MNCs in China, Hong Kong, Singapore, and Taiwan. Results indicate that patterns of advertising standardization vary based on the national origins of MNCs. The subsidiaries of U.S.-based MNCs are the most likely to pursue a standardized advertising approach, whereas the Japanese are least likely to standardize. Larger subsidiaries demonstrate a greater likelihood of pursuing advertising standardization. The coordination and control construct is a predictor of advertising standardization across all groups of firms. Consumer similarity, advertising infrastructure, and competitive position impact advertising standardization in the subsidiaries of U.S.-based MNCs. Market and consumer similarities are significant predictors of standardization in European firms. Advertising standardization within the units of Japanese MNCs is influenced by the global identity and branding construct.