Marketing performance of subsidiaries operating abroad: An integrative model
DOI:
https://doi.org/10.18568/1980-4865.11364-77Keywords:
International Marketing, Marketing, Performance Subsidiaries, Integrative Model,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.
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