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The Impact of Strategic Fit Among Strategy, Structure, and Processes on Multinational Corporation Performance: A Multimethod Assessment

Published on Jun 1, 2006in Journal of International Marketing 3.38
· DOI :10.1509/jimk.14.2.1
Shichun Xu6
Estimated H-index: 6
(MSU: Michigan State University),
S. Tamer Cavusgil60
Estimated H-index: 60
(MSU: Michigan State University),
J. Chris White9
Estimated H-index: 9
(MSU: Michigan State University)
Cite
Abstract
Abstract The international marketing literature has produced divergent findings regarding the effect of a standardized marketing strategy on firm performance among large multinational corporations (MNCs). Prior research has typically considered external or environmental factors to reconcile different findings. This study employs multiple perspectives of strategic fit (moderation, mediation, profile deviation, and covariation) to examine the effect of the internal fit among strategy, structure, and processes of MNCs and explores their effects on firm performance. Empirical results based on 206 MNCs support the mediation, profile deviation, and covariation perspectives, but they fail to confirm the moderation perspective.
  • References (104)
  • Citations (102)
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References104
Newest
Published on Sep 23, 2008in Journal of Global Marketing
Aviv Shoham35
Estimated H-index: 35
(University of Haifa)
SUMMARY The author advances a model of the relationship between the degree of standardization of international marketing strategy and export performance that distinguishes between objective and subjective performance. The model is tested using a meta-analysis, which makes it possible to incorporate the results of multiple studies of the focal constructs. Specifically, the author brings together the results of studies about the impact of the degree of standardization of the export marketing mix a...
Published on Dec 1, 2007in Journal of International Marketing 3.38
Susan Freeman20
Estimated H-index: 20
(Monash University),
S. Tamer Cavusgil60
Estimated H-index: 60
(MSU: Michigan State University)
Abstract Substantial scholarly work has shed much light on the development of a contemporary global environment—namely, the phenomenon of born-global firms. These young entrepreneurial firms, which take on internationalization early in their evolution, are now found in large numbers in most economies, especially in smaller, saturated, developed markets. In this article, the authors advance some theoretical explanations regarding the behavior of these firms. In the current Australian case-based s...
Published on Oct 1, 2005in Journal of Small Business Management 3.12
Lance Eliot Brouthers28
Estimated H-index: 28
(UTEP: University of Texas at El Paso),
George Nakos12
Estimated H-index: 12
(Clayton State University)
The factors that contribute to export performance of small and medium size enterprises (SMEs) are examined. Previous research has considered the influence of decision-maker characteristics and firm-specific characteristics on export performance. This research examines instead whether the use of systematic market selection techniques to identify export targets improves a firm’s export performance. For the study, a scale to measure how many criteria a firm uses in choosing a foreign market was dev...
Published on Aug 1, 2005in Academy of Management Journal 7.19
Gerard H. Gaynor45
Estimated H-index: 45
(UW: University of Wisconsin-Madison)
Empirical findings from publicly traded firms and behavioral arguments suggest a positive influence of resource slack on financial performance. While this area has remained unexplored in privately held firms, conceptual arguments indicate that resource constraints may enhance performance. Longitudinal data on 900 privately held firms confirm the differing influences of forms of slack on performance. Results indicate that a combination of behavioral and resource constraints arguments are necessar...
Published on Apr 1, 2005in Strategic Management Journal 5.57
Anthony Goerzen12
Estimated H-index: 12
(UVic: University of Victoria),
Paul W. Beamish59
Estimated H-index: 59
(UWO: University of Western Ontario)
This paper examines the impact of alliance network diversity on multinational enterprise (MNE) economic performance. We consider competing hypotheses derived, alternatively, from transaction cost theory and network theory. Using a latent variable structural equation modeling approach on a sample of 580 large MNEs, we find that MNEs with more diverse alliance networks experience lower economic performance on average than those with less diverse alliance networks. Copyright © 2005 John Wiley & Son...
Published on Jan 1, 2005in Journal of Marketing 7.82
Douglas W. Vorhies10
Estimated H-index: 10
(University of Mississippi),
Neil A. Morgan37
Estimated H-index: 37
(UNC: University of North Carolina at Chapel Hill)
Abstract Market-based organizational learning has been identified as an important source of sustainable competitive advantage. One particular learning mechanism, benchmarking, is a widely used management tool that has been recognized as appropriate for identifying and enhancing valuable marketing capabilities. However, despite widespread admonitions to managers, the benchmarking of marketing capabilities as a route to sustainable competitive advantage has received scant empirical attention. The ...
Published on Dec 1, 2004in Journal of International Marketing 3.38
Janell D. Townsend10
Estimated H-index: 10
,
Sengun Yeniyurt17
Estimated H-index: 17
+ 1 AuthorsS. Tamer Cavusgil60
Estimated H-index: 60
(SPbU: Saint Petersburg State University)
Abstract As the era of globalization continues to manifest through the emergence of global companies, the use of marketing programs in these firms has become increasingly important. This research examines global marketing program–related factors, their drivers, and their performance consequences. The global marketing program, as the authors conceptualize it, consists of three key factors: global marketing strategy, global marketing structure, and global marketing processes. The authors develop a...
Published on Sep 1, 2003in Journal of International Marketing 3.38
David A. Griffith44
Estimated H-index: 44
(SPbU: Saint Petersburg State University),
Aruna Chandra11
Estimated H-index: 11
(ISU: Indiana State University),
John K. Ryans1
Estimated H-index: 1
(College of Business Administration)
Abstract Standardization of promotional elements in an international context is an important issue faced by multinational managers and has been the subject of debate for several decades. However, to date, few empirical studies have examined the intricacies of this issue, and thus there is little guidance for academics or practitioners. This study empirically examines the influence of four factors—market similarity, process standardization, environmental similarity, and mode of entry—on two eleme...
Published on Sep 1, 2003in Journal of International Marketing 3.38
Henry F.L. Chung17
Estimated H-index: 17
(Massey University)
Abstract 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 fir...
Cited By102
Newest
Published on Jun 1, 2019in Journal of International Marketing 3.38
Hannah S. Lee4
Estimated H-index: 4
,
Hannah Soobin Lee , David A. Griffith44
Estimated H-index: 44
For business success and continued growth, multinational corporations (MNCs) must work to efficiently leverage interactions with customers dispersed across geographic boundaries. Under the framework of the attention-based view, this study examines the MNC strategic approach of country-based interaction orientation and marketing strategy implementation adaptation/standardization as drivers of global profit growth, contingent on the environmental conditions of competitive intensity and market dyna...
Published on Apr 1, 2019in Industrial Marketing Management 4.78
Abdulrahman Al-Surmi (University of Bedfordshire), Guangming Cao12
Estimated H-index: 12
(University of Bedfordshire),
Yanqing Duan18
Estimated H-index: 18
(University of Bedfordshire)
Abstract In order to succeed in today's competitive business environment, a firm should have a clear business strategy that is supported by other organizational strategies. While prior studies argue that strategic alignment enhances firm performance, either strategic alignment including multiple factors or strategic orientation of firms has received little attention. This study, drawing on contingency theory and configuration theory, investigates the performance impact of triadic strategic align...
Published on Mar 16, 2019in Emerging Markets Finance and Trade 0.93
Jian Du (ZJU: Zhejiang University), Xiaoran Chang (ZJU: Zhejiang University), Xiaobo Wu (ZJU: Zhejiang University)
ABSTRACTFrom the perspective of strategic fit, integrating time compression diseconomies with knowledge-based view, and adopting multi-stage design, this article explores the U-shaped moderating effect of geographic diversity of international expansion on the relationship between speed and MNE’s performance. Using a longitudinal study of 234 Chinese listed firms from 2008 to 2014, this study finds that the negative effect of speed on MNE’s performance is weakest when the spatial distribution is ...
Published on Jan 2, 2019in Knowledge Management Research & Practice 1.49
Ping Jung Hsieh (NKNU: National Kaohsiung Normal University), Chien Chih Chen (NKNU: National Kaohsiung Normal University), Wu Liu
ABSTRACTUnambiguously clear organizational strategies help organizational resources stay focused and facilitate the achievement of organizational goals effectively. The resource-based view (RBV) literature has noted that the implementation of strategies requires firms to possess appropriate resources and capabilities. In the era of knowledge economy, businesses which seek to improve business competitiveness have considered talent cultivation as important organizational strategies. Therefore, con...
Published on Jan 1, 2018
Gregor Pfajfar3
Estimated H-index: 3
(University of Ljubljana),
Aviv Shoham35
Estimated H-index: 35
(University of Haifa)
+ 1 AuthorsVesna Virant2
Estimated H-index: 2
(University of Ljubljana)
This chapter aims to assess the relationships between standardization of international strategy and performance. Additionally, it aims to study the relationships of four integration modes with international strategies. A sample of Slovene exporters is used. Managers responded to a structured survey. Structural equation modeling (SEM) was applied. It was found that integration modes play a role in allowing standardized strategies to be developed and implemented successfully. This study is the fir...
Published on Jan 1, 2018in Journal of Purchasing and Supply Management 3.09
Melek Akın Ateş4
Estimated H-index: 4
(METU: Middle East Technical University),
Erik M. van Raaij15
Estimated H-index: 15
(EUR: Erasmus University Rotterdam),
Finn Wynstra26
Estimated H-index: 26
(EUR: Erasmus University Rotterdam)
Abstract The organizational design literature strongly supports the notion of “structure follows strategy”, and suggests that a misfit between the two has a negative effect on performance. Building on this line of argument, we examine to what extent the (mis)fit between purchasing strategy and purchasing structure impacts purchasing performance. We focus on cost and innovation purchase category strategies, and examine how the deviation from an ideal purchasing structure defined along three dimen...
Published on Aug 7, 2017
Dessislava Dikova1
Estimated H-index: 1
(WU: Vienna University of Economics and Business),
Witteloostuijn van Arjen33
Estimated H-index: 33
,
Simon C. Parker36
Estimated H-index: 36
(UWO: University of Western Ontario)
Purpose Extant work in international business (IB) involves a partial contingency-theoretic perspective: a holistic view of the impact of bundles of contingencies on an outcome variable is missing. The purpose of this paper is to adopt a contingency approach to study multinational enterprise (MNE) subsidiary performance in the appropriate context of European transition economies at the beginning of the current millennium. Design/methodology/approach Methodologically, the authors introduce abduct...
Published on May 1, 2017in Industrial Marketing Management 4.78
Simos Chari5
Estimated H-index: 5
(University of Leeds),
George Balabanis24
Estimated H-index: 24
(Lond: University of London)
+ 1 AuthorsStanley F. Slater46
Estimated H-index: 46
(CSU: Colorado State University)
Abstract On the basis of intended marketing strategy plans, firms design administrative systems to support strategy implementation. In increasingly turbulent business environments—characterized by complexity, scarce resources, and escalating competitive opportunities and threats—firms are forced to alter intended and realize emergent strategies more frequently than ever before. The eventualities of realized marketing strategies may lead to misalignments between the strategy and the existing admi...
Published on Jan 1, 2017
António Amaral4
Estimated H-index: 4
(Polytechnic Institute of Viana do Castelo),
Maria Madalena Teixeira de Araújo13
Estimated H-index: 13
(University of Minho)
Published on Dec 8, 2016
The main purpose of this research is to investigate if and how the internal auditing (IA) profession and practitioners exercise ingenuity to deal with the constraints faced by them during the development of IA and implementation of IA activities at the societal and organizational level. The key aim is to explore whether, through exercising ingenuity, the Institute of Internal Auditors (IIA) and IA functions can strengthen and improve IA quality and effectiveness in order to meet the expectations...