Henry F.L. Chung

International Standardization Strategies: The Experiences of Australian and New Zealand Firms Operating in the Greater China Markets

Drawing on the findings of previous theoretical and empirical studies, this study proposes two frameworks for examining standardization strategies in home–host and intermarket scenarios. For the first time, internal and external factors, extent of standardization, program and process, performance, and home–host/intermarket scenarios are included in one study. In its examination of the proposed research frameworks, the study relies on the experiences of 146 Australian and New Zealand firms operating in the Greater China markets. Factors identified as significantly related to the selection of standardized marketing strategies in the home–host scenario include product type, consumer behavior, marketing infrastructure, political environment, and firm size. Factors suggested by the multivariate regression analysis as significantly related to standardized strategies in the intermarket scenario are product type, international business experience, competitive environment, political and legal aspects, and firm size. For the first time, it is suggested that the standardization of distribution and product strategies has an effect on firm performance in the intermarket scenario.

Export market orientation, managerial ties, and performance

Purpose – The purpose of this study is to provide new insights into the link between export market orientation (EMO) and export performance by examining whether managerial ties act to moderate the relationship. Specifically, the study explores whether the extent to which firms have managerial ties (business and political) alters the ways in which the intelligence generation and dissemination components of export market orientation drive export market responsiveness, and in turn, impact on strategic export performance.Design/methodology/approach – Survey data from 100 New Zealand firms exporting to the European Union are used.Findings – The key findings indicate that: export market intelligence generation and dissemination have positive associations with responsiveness; the strength of business ties enhances the relationship between export market intelligence generation and responsiveness; the strength of political ties reduces the relationship between export market intelligence dissemination and responsiv...

A contingency approach to international marketing strategy and decision‐making structure among exporting firms

Purpose – Although the relation between standardization/adaptation strategy and performance has been extensively examined in the international marketing literature, the findings concerning these factors are still inconclusive. The conflicting results might relate to the analysis approach adopted in prior research, which tends to focus on the direct effect of marketing strategies. By utilizing the contingency theory, the purpose of this paper is to uncover the moderation factors for the strategy‐structure‐performance paradigm in the export sector. Internal, external and product‐related factors are explored.Design/methodology/approach – This study focuses on four strategy and structure combinations: The global approach (standardization‐centralization); the glocal approach (standardization‐decentralization); the regcal approach (adaptation‐centralization); and the local approach (adaptation‐decentralization). The interactive effect of the four approaches and a set of contingent factors are examined based on ...

An investigation of crossmarket standardisation strategies

Purpose – The importance of the European Union (EU) to international business cannot be stressed too greatly. Recently it has expanded to 25 country markets. Its total population has reached 455 million people, which is the worlds largest economic organisation. Previous international marketing standardisation (IMS) studies focused on the EU are mainly descriptive in nature and they have not specifically examined issues related to firms’ operations in two or more EU country markets at one time. The purpose of this study is to examine issues related to the crossmarket standardisation strategy, i.e. whether a standardised marketing programme and process can be used across the country markets in the EU.Design/methodology/approach – Using the pair‐wise comparison method originally developed by Sorenson and Wiechmann this study examines the marketing standardisation strategies selection process of 66 New Zealand firms which were concurrently operating in two or more EU markets. In total these firms were operat...

International marketing standardisation strategies analysis

Purpose – This study is designed to explore international marketing standardisation (IMS) by investigating the choice of IMS for industrial product (ID) and non‐industrial product (non‐ID) operators and firms from Australia and New Zealand.Design/methodology/approach – This study has used the experiences of a group of exporting firms to achieve its research objectives. It has employed both main effect and interaction methods to assess its research framework.Findings – The outcomes of this study reveal that, in addition to the main effect outcomes, some significant variations exist. Some of these variations are consistent with the main effects, while others are not. On some occasions a factor is not identified as a main effect factor, and yet it has a significant impact in a certain situation (e.g. infrastructure*IDs). The interaction outcomes are more significant in terms of the price, promotion and performance components. The interaction outcomes show that firms might be able to use a number of alternati...

Structure of marketing decision making and international marketing standardisation strategies

Purpose – Research concerning marketing standardisation is still developing. A new research theme has recently emerged, wherein it is suggested that the structure of marketing decision making is likely to be a factor of marketing standardisation strategy. This study aims to add insights to this new research field. Based on the outcome of previous studies, it aims to propose and test a research framework concerning the relationships among environmental factors, the structure of decision making and marketing standardisation/performance. This study seeks to focus on the two most important programme elements: promotion and product.Design/methodology/approach – The study used the experience of 78 firms operating in the European Union (EU) region to achieve its research objectives. The data used were collected through a postal survey. This analysis used both partial least square (PLS) and hierarchical regression analysis methods to examine its research framework.Findings – The study has generated a framework fo...

An Empirical Investigation of Marketing Programme and Process Elements in the Home-Host Scenario

SUMMARY The two major strategies often available to international marketers are standardisation and adaptation when deciding to operate in a foreign host market. Both strategies have pros and cons. Drawing on the findings of previous theoretical and empirical studies, this study proposes a “marketing programme/process and performance” framework. The study employed a linear multiple regression (OLS) analysis method to examine the proposed framework, based on the experience of 233 Australian and New Zealand (home markets) firms operating in the Greater China region (host markets). Factors identified as significantly associated with adaptation of programme/process include “employee” and “employer” immigrant effects, government regulations, economic development, competitive environment and product life cycle. Factors identified as influencing firm performance include product adaptation, product type and market entry mode.

Immigrant effects and international business activity: an overview

Purpose – This paper aims to examine the myriad linkages between cross‐border migration and international business activity through a conceptual framework of international arbitrage.Design/methodology/approach – While labour is internationally the least integrated of the various markets (capital, product, labour) the increasing co‐movement of both tasks and workers has created opportunities for the arbitrage and exploitation of differences between national labour markets. Because national labour markets typically display the two characteristics of separation and price discrepancy it is possible to utilise the principle of arbitrage and within this framework examine cost, intellectual, knowledge and employment arbitrage.Findings – The discussion suggests that international business offers valuable insights into migration processes and effects which have been dominated by the research approaches of other disciplines. It is found that migrants can help reduce transaction costs for bilateral trade, contribute...

International marketing decision governance, standardisation, and performance

Purpose – The purpose of this paper is to establish a decision‐making governance framework for transferring a product/service from one EU host market to another.Design/methodology/approach – Prior research concerning the relation between marketing decision governance (centralised versus decentralised) and standardisation strategy/performance tends to focus on the home‐host scenario. This study has utilised the experience of 70 firms operating in the cross‐market scenario in the EU region – i.e. transferring a product/service from one EU host market to another – in order to establish its decision‐making governance framework. The respondents were operating in both the manufacturing and service sectors.Findings – It was found that firms with large size and a high level of business experience, operating in a similar cross‐market environment, or in a country pair that has a difference in market potential, are more likely to pursue a decentralised governance. Firms operating in a highly different market environ...

An analysis of Taiwan’s distribution system

Taiwan is one of the newly industrialised economies. Its foreign currency reserves are among the largest in the world. Still, few efforts have been expended to examine its distribution system. This article intends to examine issues concerning Taiwan’s distribution system and its impact on foreign‐produced consumer products. Based on examining the distribution channels for six New Zealand‐produced products, a number of conclusions are drawn. The findings of this study point out that firms’ choice of market entry mode might be affected by the host market’s distribution system. The most common channel structure used by foreign producers marketing in Taiwan is a multiple channel system. In addition, the study concurs with findings on the Japanese distribution system, that a common problem facing firms operating in these markets is the large number of small sized retailing outlets. Due to the similarities of the two systems, foreign firms are recommended to use the experience of those firms which have successfully penetrated the Japanese market.