Abstract
In the internationalization process firms face challenges in order to be successful, such as enabling knowledge transfer, finding the optimum balance between standardizing/adapting their marketing strategies, determining the strength of external networks, and deciding degrees of reverse innovation. Research on knowledge transfer in multinational firms has grown considerably over the last 15 years, but still little is known about its impact on the marketing performance of subsidiaries. The majority of the investigations carried out analyze knowledge transfer but not its interrelationships with the performance of subsidiaries. Several other studies evaluate the standardization/adaptation decision, but do not take into consideration issues such as operational environments or psychic distance. To fill this gap we review 70 articles published in top-tier peer-reviewed international and national journals in the field of international business and international marketing. From this review we build up a framework for the development of an integrative and explanatory theoretical model of the marketing performance of subsidiaries operating abroad with fifteen propositions. In this paper we present a literature review and model that will be empirically tested after gathering information to form a reliable database about the performance of multinationals.
Highlights
Firms can choose between entering the global competition or remaining restrict to their local positions
This study aims to identify the key environmental variables described in International Business and International Marketing literature and proposes a theoretical, integrative, and explanatory model for the marketing performance of subsidiaries operating abroad
We believe our work adds to the literature on both international marketing and international business, and adds another element to the growing set of research findings on the marketing performance of subsidiaries operating abroad
Summary
Firms can choose between entering the global competition or remaining restrict to their local positions. Presence in foreign markets can occur in various forms and, depending on the business environment, an organization may need to relocate its local operation This is what happened to AMBEV in 2013, for example. This study aims to identify the key environmental variables described in International Business and International Marketing literature and proposes a theoretical, integrative, and explanatory model for the marketing performance of subsidiaries operating abroad. The model developed incorporates the dynamics of the environment and the issue of organizational learning, and can be applied to large and small organizations—even franchise chains can benefit from it Franchise chains such as Arby’s and KFC, for example, were unable to properly analyze the Brazilian market before settling in the country. Final remarks are presented that stress the necessity of testing the model
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