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Conditions influencing headquarters and foreign subsidiary roles in marketing activities and their effects on performance

Author

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  • K Hewett

    (Management and Marketing Department, College of Business Administration, Winthrop University, Rock Hill, USA)

  • M S Roth

    (Moore School of Business, University of South Carolina, Columbia, USA)

  • K Roth

    (Moore School of Business, University of South Carolina, Columbia, USA)

Abstract

In this study, we examine the extent to which foreign subsidiaries are responsible for the development and implementation of marketing activities, as compared with these activities being controlled by headquarters. We propose and test a model of conditions that affect such headquarters and subsidiary roles, and explore the extent to which the alignment of these roles with certain conditions is associated with product performance. Our findings suggest that the more closely headquarters and subsidiary roles in marketing activities are aligned with relational, industry, and market conditions, the greater market share tends to be. Journal of International Business Studies (2003) 34, 567–585. doi:10.1057/palgrave.jibs.8400054

Suggested Citation

  • K Hewett & M S Roth & K Roth, 2003. "Conditions influencing headquarters and foreign subsidiary roles in marketing activities and their effects on performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 567-585, November.
  • Handle: RePEc:pal:jintbs:v:34:y:2003:i:6:p:567-585
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    Citations

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    Cited by:

    1. Schmid, Stefan & Grosche, Philipp & Mayrhofer, Ulrike, 2016. "Configuration and coordination of international marketing activities," International Business Review, Elsevier, vol. 25(2), pages 535-547.
    2. Urmas Varblane & Katrin Männik & Helena Hannula, 2005. "Autonomy And Performance Of Foreign Subsidiaries In Transition Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 38, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Schleimer, Stephanie C. & Coote, Leonard V. & Riege, Andreas, 2014. "Headquarters to subsidiary transfer effects on marketing strategy exploitation," Journal of Business Research, Elsevier, vol. 67(3), pages 307-315.
    4. Urmas Varblane & Katrin M??nnik & Helena Hannula, 2005. "Autonomy and Performance of Foreign Subsidiaries in five Transition Countries," William Davidson Institute Working Papers Series wp780, William Davidson Institute at the University of Michigan.
    5. Grøgaard, Birgitte, 2012. "Alignment of strategy and structure in international firms: An empirical examination," International Business Review, Elsevier, vol. 21(3), pages 397-407.
    6. repec:spr:manint:v:49:y:2009:i:5:d:10.1007_s11575-009-0012-9 is not listed on IDEAS
    7. Scott, Pamela & Gibbons, Patrick & Coughlan, Joseph, 2010. "Developing subsidiary contribution to the MNC--Subsidiary entrepreneurship and strategy creativity," Journal of International Management, Elsevier, vol. 16(4), pages 328-339, December.
    8. Li, Jingxun & Lee, Ruby P., 2015. "Can knowledge transfer within MNCs hurt subsidiary performance? The role of subsidiary entrepreneurial culture and capabilities," Journal of World Business, Elsevier, vol. 50(4), pages 663-673.
    9. Qu, Riliang & Zhang, Zelin, 2015. "Market orientation and business performance in MNC foreign subsidiaries— Moderating effects of integration and responsiveness," Journal of Business Research, Elsevier, vol. 68(5), pages 919-924.
    10. Stephanie C. Schleimer & Torben Pedersen, 2013. "The Driving Forces of Subsidiary Absorptive Capacity," Journal of Management Studies, Wiley Blackwell, vol. 50(4), pages 646-672, June.
    11. repec:spr:manint:v:50:y:2010:i:1:d:10.1007_s11575-009-0021-8 is not listed on IDEAS
    12. repec:spr:manint:v:48:y:2008:i:2:d:10.1007_s11575-008-0011-2 is not listed on IDEAS
    13. Hughes, Paul & Morgan, Robert E., 2008. "Fitting strategic resources with product-market strategy: Performance implications," Journal of Business Research, Elsevier, vol. 61(4), pages 323-331, April.

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