Global Standardisation Strategy and New Product Development in MNCs: Approaches and Evolution

Abstract

Global product strategy regarding global product standardisation and local product adaptation is one of the challenges faced by multinational corporations (MNCs). Studies in this area have tested the antecedents and consequences of standardisation/adaptation, but very few have explored this issue in the context of new product development (NPD). In this study, I explore how product standardisation/adaptation is determined in the NPD context. Through a qualitative case study of four MNCs, I found that although the platform-based approach is superior to other approaches in terms of competition, not all firms are able to adopt this approach. I reveal how certain factors could influence the choice of a certain NPD approach. I draw implications on the importance of the NPD context to standardisation/adaptation of products.