Balancing Standardization and Adaptation for Product Performance in International Markets: Testing the Influence of Headquarters- Subsidiary Contact and Cooperation

摘要

1. We examine how MNCs balance standardization and adaptation in their international product designs. Specifically, we investigate how inputs from both a firm's headquarters and its foreign subsidiaries, together, shape the standardization-adaptation balance for the product's superior market performance. 2. Our survey of 128 products in the foreign markets of 62 MNCs reveals that a standardization-adaptation balance, when shaped through face-to face contact between headquarters-subsidiary managers, positively influences product performance. Additionally, headquarters-subsidiary co-operation enhances this influence on performance.