Rao-Nicholson, R. and Khan, Z. (2017) Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions. International Marketing Review, 34 (1). pp. 138-158. ISSN 0265-1335
Abstract
Purpose: The recent increase in the presence of emerging-market firms (EMFs) in global markets requires a closer examination of their international marketing strategies (including branding). This paper examines the factors behind the standardization or adaptation of global marketing strategies adopted by EMFs for their cross-border acquisitions. Methodology/Approach: This paper examines the determinants of the marketing strategies adopted by Indian and Chinese firms for their cross-border acquisitions. The drivers of the standardization/adaptation of marketing strategies (including branding) are identified using both quantitative data collected in 168 cross-border acquisitions conducted by the EMFs mentioned above and the institutional theory and organizational identity literature. Findings: Institutional factors have a stronger effect than organizational identities on global marketing strategies, including branding. The standardization of the EMFs’ marketing strategies is driven by the private statuses of the acquirers, legal distances, target countries’ 2 economic development, and the ethnic ties that exist between the home and host countries. The acquirers’ decisions to retain the targets’ brand identities, thus adapting their global marketing strategies, is related to the cultural distances, economic freedom distances and sizes of the targets. Research limitations/implications: In this study, two large emerging markets—India and China—are used to gather the empirical data; future works can expand upon this line of research and examine other EMFs. Practical Implications: The acquiring companies have to decide whether to adopt an adaption marketing strategy, with reference to the acquired targets’ local stakeholder requirements, or to incorporate their targets’ brands into their own global marketing strategies. Originality/ Value: Typically, previous work on the adaptation versus standardization of global marketing strategies adopted in the wake of cross-border deals has focused on acquisitions involving companies from developed countries; this paper extends the field of research to the EMFs of two of the most important developing countries: China and India.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Emerald Publishing Limited 2017. This is an author produced version of a paper subsequently published in International Marketing Review. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | adaptation versus standardization; branding; marketing strategy; cross-border acquisitions; emerging markets firms |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 22 Jun 2016 10:40 |
Last Modified: | 12 Oct 2017 10:28 |
Published Version: | https://doi.org/10.1108/IMR-12-2015-0292 |
Status: | Published |
Publisher: | Emerald |
Refereed: | Yes |
Identification Number: | 10.1108/IMR-12-2015-0292 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:101141 |
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