International Marketing in Multinational Company Subsidiaries in Emerging Markets: A Multidimensional Approach

Abstract

Abstract Purpose The objective is to determine if there are groups of subsidiaries that are different in regard to the implementation of strategies, structures, and processes and the transfer of marketing knowledge in emerging markets. Methodology/approach A survey with 101 largest foreign subsidiaries located in Brazil was conducted. The data collection process was conducted online and by telephone. Findings Three subsidiary groups based on the configuration of their international marketing activities were characterized: Cluster 1, called “Subsidiary with Knowledge Marketing Activities”; Cluster 2, called “Subsidiaries with Global Marketing Activities”; and Cluster 3, called “Subsidiaries with Local Marketing Activities.” Compared to the two other groups, Cluster 1 is the group with the minor number of companies, but it has a better strategic performance than other clusters. Research limitations/implications This study was developed in only one emerging country, Brazil, and with 101 subsidiaries from MNCs. This could be extended to other countries, such as China, Russia, India, and Turkey and with more subsidiaries. Related to the construct measurements, one limitation is the qualitative measure of performance. Practical implications Subsidiaries that work with global marketing should pool their efforts to create and transfer marketing knowledge to improve their performance. Subsidiaries with local marketing activities may even perform more satisfactorily in the short term, but they should concern to contribute to the overall competitive edge of the corporation. Originality/value The discussion about marketing in emerging markets and the way in which the transfer of marketing knowledge can be reflected in the performance.