Launching new global products into subsidiary markets: The vital role of sales and marketing collaboration

Abstract

AbstractWe examine how to encourage collaboration between local sales and marketing teams in multinational enterprise (MNE) subsidiaries in order to successfully commercialize new product launches by creating integrated, locally adapted implementation plans. Empirical research within six subsidiaries of an MNE operating in southern Latin America found that centrally produced processes alone were insufficient for successfully launching new products in these subsidiary markets. However, devolving power, while using cross‐functional teams and formalized processes to encourage communication, led to the development of the types of trust that facilitate effective relationships between sales and marketing teams, which resulted in successfully adapted new product launches for each subsidiary market. We discuss the implications of our findings for theory and practice.