Aviv Shoham, Maja Makovec Brencic, Vesna Virant, and Ayalla Ruvio
Executive Summary
Most research on standardization examines it in the context of the marketing mix. In contrast, research on standardization of management processes/characteristics is rare. The distinction between standardized contents of the marketing program (the marketing mix) and standardized management processes/characteristics (tools that aid in program development and implementation) is important.
Shoham, Brencic, Virant, and Ruvio examine Slovene exporters' standardization of their international management of process relationships with their foreign representatives and standardization's performance consequences. They include characteristics of firms’ relationships with their foreign representatives (coordination, support, autonomy, communications, and control) and their impact on behavioral (representatives' commitment, cooperation, and esprit de corps) and performance outcomes.
The authors use institutional theory and fit theory to study standardization of management processes/characteristics in the channel context. Institutional theory posits that organizations strive for efficiency, effectiveness, and legitimacy. It recognizes that societies exert pressures for organizational conformity to legitimized managerial routines and standards, which constrain resource allocation decisions and strategies’ selection. Organizational members follow such cultural characteristics when developing and implementing strategies. The theory could be used to argue for either standardization, which would increase headquarters’ legitimacy in its international markets, or adaptation, which would increase legitimacy of the foreign arm of international firms in these firms' headquarters.
According to cultural fit theory, models of culture and work emphasize the fit between a culture and managerial practices. On the one hand, high fit to a given culture requires high levels of adaptation of management processes. On the other hand, standardization of processes should be used when interacting firms come from close cultures.
In summary, institutional and fit theories suggest either standardization or adaptation of cultural characteristics. Thus, the authors’ general nondirectional research proposes that the level of standardization/adaptation of management processes/characteristics in relation to representatives across borders is related to international performance.
The authors’ study of Slovene manufacturing exporters in high- and low-tech industries shows that, in general, standardization of coordination; representatives’ support, autonomy, and control; and communications with the representatives enhanced behavioral outcomes (commitment, cooperation, and esprit de corps) and bottom-line performance. Because major target markets for the sampled exporters were culturally similar to Slovenia, the use of standardized characteristics and processes enhanced performance. Thus, given cultural similarity across source and target markets, cultural standardization is the preferred approach.
Biography
Aviv Shoham received his MBA from Oklahoma University in 1984 and his PhD in Marketing from the University of Oregon in 1993. His research focuses on international marketing, international consumer behavior, and international public-sector marketing strategy. In addition to Journal of International Marketing, he has recently published in Journal of International Consumer Marketing, International Public Management Review, Journal of Consumer Marketing, Marketing Intelligence and Planning, and Journal of Marketing Theory & Practice.
Maja Makovec Brenčič is an Associate Professor of International Business and Marketing in the Faculty of Economics at the University of Ljubljana (FELu). Her main research areas are international marketing, relationship marketing, and internationalization of firms. She has published in various international and Slovenian academic and professional journals and also has contributed to monographs and conference proceedings. She has presented her research at conferences and professional meetings in Europe, the United States, and Asia. She teaches International Marketing, International Business, Strategic Marketing, and Marketing Management at FELu and other European universities. She is involved with several professional associations (e.g., EMAC, AMA, AMS, AIB) and serves as an ad hoc reviewer for journals and at various domestic and international conferences.
Vesna Virant holds an MSBA and completed her post-graduate work at the Faculty of Economics at the University of Ljubljana in December 2004. She currently works for a as CEO of a branch in Romania. She has published scientific and professional articles on different aspects of marketing in both local and foreign publications.
Ayalla Ruvio received her PhD in Educational Administration from the University of Haifa in 2001. She is a faculty member in the Graduate School of Management at the University of Haifa, Israel and heads the Executive MBA Program for nonprofit managers. She specializes in individual differences in consumer behavior and nonprofit marketing. Her research interests include the concept of “possessions as extension of the self,” consumers’ need for uniqueness, social aspects of consumer behavior, and innovation in nonprofit organizations. In addition to Journal of International Marketing, she has recently published in Psychology and Marketing, Journal of Business Research, International Marketing Review, and Journal of Consumer Marketing.
Journal of International Marketing, Vol. 16, No. 2, June 2008
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