Abstract
International marketing has been characterized repeatedly as one of the marketing areas in which work by practioners is often more advanced and insightful than its conceptualization by academicians.l The global marketing strategies implemented by successful multinationals, in particular, lend considerable support to such an assessment.
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Notes
In a recent survey among U.S. marketing academicians, international marketing was among the marketing areas ranked last in terms of perceived progress toward theory development. See: Chonko, L. B. and Dunne, P. M. “Marketing theory: A Status Report.” In: R. F. Bush and S. D. Hunt (eds.), Marketing Theory: Philosophy of Science Perspectives. Chicago: American Marketing Association, 1982, pp. 43–46.
Hampton, G. M. and Van Gent, A. “International Marketing in the 1980s and Beyond: Research Frontiers. See: Chapter 12 in this volume.
See, for instance, Wind, Y. and Perlmutter, H. “On the Identification of Frontier Issues in Multinational Marketing.” Columbia Journal of World Business 12 (Winter); 131–39, 1977.
Boddewyn, J. “International Public Affairs.” In: I. Walter and T. Murray (eds.), Handbook of International Business. New York: John Wiley, 1982, Section 42. Gives a detailed account of MNC “non-market” relations.
For the management of related conflicts, see Gladwin, T. N. and Walter, I. Multinationals Under Fire. New York: John Wiley, 1980.
Rowe, A., Mason, R. and Dickel, K. Strategic Management and Planning: A Methodological Approach. Reading, MA: Addison-Wesley, 1982, presents the major approaches reported in the literature of the field.
Soldner, H. “Marketing’s Future in Theory and Practice.” European Journal of Marketing 17(5), 1983;
Sheth, J. N. and Gardner, D. M. “History of Marketing Thought.” In: R. F. Bush and S. D. Hunt (eds.), Marketing Theory, pp. 52–58, provide a broader background.
Lazer, W. and Kelley, E. Social Marketing. Homewood, III.: R. D. Irwin, 1973, covers the societal dimension.
For a broader definition, see Spratlen, T. H. “A Conceptual Analysis and Framework for Social Marketing Theory and Research.” In: O. C. Ferrell, S. W. Brown, and C. W. Lamb, Jr., (eds.), Conceptual and Theoretical Developments in Marketing. Chicago: American Marketing Association, 1979, pp. 166–83.
See the contributions by S. D. Hunt, D. L. Shawver and W. G. Nickels, P. D. White, R. Chaganti, and S. Heede in: “What is Macromarketing: A Colloquium,” Parts I and II. Journal of Macromarketing 1(1): 7–13,1981
S. D. Hunt, D. L. Shawver and W. G. Nickels, P. D. White, R. Chaganti, and S. Heede in: “What is Macromarketing: A Colloquium,” Parts I and II. Journal of Macromarketing 1(2): 56–61, 1981.
Boddewyn, J. J. Comparative Marketing: the First Twenty-five Years. Journal of International Business Studies 12(1): 61–80, 1981.
Bartels, R. Global Development in Marketing. Columbus, OH: Grid, 1981. p. 66.
Terpstra, V. “On Marketing Appropriate Products in Developing Countries.” Journal of International Marketing 1(1): 3–15, 1981.
Behrman, J. N. “Transnational Corporations in the New International Economic Order.” Journal of International Business Studies 12(1): 29–42, 1981, gives an illuminating account of emerging international sectoral/industrial structures.
Schendel, D. E. and Hofer, C. W., (eds.). Strategie Management. Boston: Little, Brown, 1979.
Leontiades, M. “The Confusing Words of Business Policy.” Academy of Management Review 7(1): 45–45, 1982.
Porter, M. E. Competitive Strategy. New York: The Free Press, 1980.
Chakravarthy, B. S. “Adaptation: A Promising Metaphor for Strategic Management.” Academy of Management Review 7(1): 35–44, 1982.
McDonald, M. H. B. “International Marketing Planning.” European Journal of Marketing 16(2): 3–32, 1982;
Shuptrine, F. K. and Toyne, B. “International Marketing Planning: A Standardized Process.” Journal of International Marketing 1(1): 16–28, 1981.
Koontz, H. “The Management Theory Jungle Revisited.” Academy of Management Review 5(2): 175–87. 1980.
Bartels, R. Global Development and Marketing, Columbus, OH: Grid, 1981, pp. 2–12.
Meyer, P. W. “The Marketing Functions in the Framework of the Integrative Marketing Concept.” European Journal of Marketing 14(1): 72, 1980.
See: Rutenberg, D. “Multinational Corporate Planning and National Economic Policies.” Paper presented at the annual meeting of the Academy of International Business, Washington, D.C., October 1982.
In greater detail, Hörnell, E. Foreign Direct Investments and the Home Country Interests. Working Paper 1982/6, Centre for International Business Studies, University of Uppsala.
Cf. Pugel, T. A. “Comparative Industry Growth Rates in the U.S. and Japan: The Role of Technological Change and Technology Transfer.” Paper presented at the annual meeting of the Academy of International Business, Washington, D.C., October 1982.
Czinkota, M. R. Export Development Strategies: U.S. Promotion Policy. New York: Praeger, 1982.
See: Dunning, J. H. “Domestic and National Competitiveness, International Technology Transfer and Multinational Enterprises.” Paper presented at the 8th Annual Conference of the European International Business Association, Fontainebleau, December 1982.
Ozawa, T. “Japan’s Industrial Groups.” MSU Business Topics 28(4):33–42 1980.
See: Arndt, J. “The Political Economy of Marketing Systems: Reviving the Institutional Approach.” Journal of Macromarketing 1(2): 36–47, 1981.
Lazer, W. “Some Observations on the Development of Marketing Thought.” In: O. C. Ferrell, S. W. Brown, C. W. Lamb, Jr. (eds.), Developments in Marketing, pp. 652–64. Corrects the widespread notion of marketing as just an extension of economic thought: “The study of marketing began on an interdisciplinary basis and later in the 1950s and 1960s returned to the interdisciplinary approach.”
For a concise summary, see Dunning, J. H. International Production and the Multinational Enterprise. London: George Allen and Unwin, 1981, p. 77;
Vernon, R. “Theories of Foreign Direct Investment Taken from the Field of Industrial Organization.” In: S. Raveed and Y. R. Puri (eds.), 1977 Proceedings of the Academy of International Business (Chicago: Academy of International Business, 1978), pp. 115–18.
Vernon, R. “The Product Cycle Hypothesis in a New International Environment.” Oxford Bulletin of Economics and Statistics 41(1): 255–67, 1979.
Updated version. ForLinder’s preference similarity theory, see the brief account in Hood, N. and Young, S. The Economics of Multinational Enterprise. London: Longman, 1979, p. 141.
Caves, R. E. “International Corporations: The Industrial Economics of Foreign Investment.” Economica 38(February): 1–27, 1971.
Giersch, H. (ed.). On the Economics of Intra-Industry Trade. Tübingen: Mohr, 1978.
See, for instance, Hood, N. and Young, S. Multinational Enterprise, p. 79;
Ajami, R. A. and Ricks, D. A. “Motives of Non-American Firms Investing in the United States.” Journal of International Business Studies 12(3):25–34, 1981.
Brodbeck, M. “Recent Developments in the Philosophy of Science.” In: R. F. Busch and S. D. Hunt (eds.), Marketing Theory, pp. 1–6, discusses language problems in theorizing.
See: Anderson, P. F. “Marketing, Strategic Planning and the Theory of the Firm.” Journal of Marketing 46(2): 15–26, 1982, for divergent research traditions (ontologies and philosophical methodologies) in these domains.
Part III draws heavily on an earlier German version written by the author in 1980 as “Neuere Erklärungsansätze internationaler Unternehmensaktivitäten” (“Newer Explanatory Concepts of International Business”). In: W. H. Wacker, H. Haussmann, B. Kumar (eds.), Internationale Unternehmensführung (“International Business Management”), Berlin: Erich Schmidt Verlag, 1981, pp. 71–94.
Since then, the following review articles on FDI/MNC theories have appeared: Buckley, P. J. “A Critical Review of Theories of the Multinational Enterprise.” Aussenwirtschaft 36(1): 70–87,1981;
Calvet, A. L. “A Synthesis of Foreign Direct Investment Theories and Theories of the Multinational Firm.” Journal of International Business Studies 12(l):43–59, 1981;
Grosse, R. The Theory of Foreign Direct Investment. South Carolina Essays in International Business, No. 3. Columbia, S.C: University of South Carolina, 1981.
Dunning, J. H. Multinational Enterprise, p. 24, 98.
Buckley, P. J. and Casson, M. The Future of the Multinational Enterprise. London: Macmillan, 1976.
Coase, R. H. “The Nature of the Firm.” Economica 4(Nov.):386–405, 1937.
Buckley, P. J. and Casson, M. Multinational Enterprise, p. 45.
Dunning, J. H. and Pearce, R. D. The World’s Largest Industrial Enterprises. Farnborough: Gower, 1981, p. 113.
This is the centerpiece of Magee’s closely related appropriability theory: by transferring new product/process technology more efficiently within an internationally expanded corporate system (“hierarchy,” cf. 43) than through markets, the MNC solves the fundamental problem of appropriating technological leads completely to itself, in the face of potential imitators. The latest version is Magee, S. P. “The appropriability Theory of the Multinational Corporation.” The Annals of the American Academy of Political and Social Science 458, November 1981.
Williamson, O. E. Markets and Hierarchies: Analysis and Antitrust Implications. New York: Free Press, 1975.
Hedlund, G. “The Role of Foreign Subsidiaries in Strategic Decision Making in Swedish Multinational Corporations.” Strategic Management Journal 1(1):23–36, 1981.
Hörnell, E. and Vahlne, J. E. The Changing Structure of Swedish Multinational Corporations. Working Paper 1982/12, Centre for International Business Studies, University of Uppsala;
Germidis, D. (ed.) International Sub-Contracting: A New Form of Investment. Paris: OECD Development Centre, 1980.
Arndt, J. “Toward a Concept of Domesticated Markets.” Journal of Marketing 43(4):69–75, 1979.
Arndt, J. “The Market is Dying: Long Live Marketing.” MSU Business Topics 27(Winter):5–13, 1979.
Stern, L. W. and Reve, T. “Distribution Channels as Political Economies: A Framework for Comparative Analysis.” Journal of Marketing 44(3):52–64; Arndt, J. “The Political Economy,” pp. 36–47.
Håkansson, H. International Marketing and Purchasing of Industrial Goods: An Interaction Approach. New York: Wiley, 1982.
Jansson, H. Interfirm Linkages in a Developing Economy: A Model. Paper presented at the AIB/EIBA Joint International Conference, Barcelona, December 1981.
Hallen, L. and Wiedersheim-Paul, F. Psychic Distance in International Marketing: An Interaction Approach. Working Paper 1982/3, Centre for International Business Studies, University of Uppsala.
Davidson, W. H. Experience Effects in Internal Investment and Technology Transfer. Ann Arbor: UMI Research Press, 1980.
Dunning, J. H. Multinational Enterprise. (Especially chapters 2–5, which constitute revised versions of Dunning’s earlier publications stressing the eclectic approach.)
Ibid., p. 78.
For Example, ibid., pp. 59–66.
See the literature listed in 30 and 36.
Dunning, J. H. Multinational Enterprise, p. 111.
Ibid., p. 49.
Vernon moves to a more differentiated analysis in his PLC-re-evaluation (cf. 30).
Dunning, J. H. Multinational Enterprise, p. 113.
Robinson, R. D. “Background Concepts and Philosophy of International Business from World War II to Present.” Journal of International Business Studies 12(1): 13–21, 1981;
Macharzina, K. International Business Theory Development: Remarks on Concepts of Research. Hohenheimer Betriebswirtschaftliche Beiträge Nr. 9 (Hohenheim Contributions to Business Adminstration), University of Hohenheim, 1980.
Fayerweather, J. A. “Conceptual Framework for the Multinational Corporation.” In: W. H. Wacker, H. Haussmann, and B. Kumar (eds.), Internationale Unternehmensführung, pp. 17–31, is the most recent version.
For a broader background, see Fayerweather, J. International Business Strategy and Administration. Cambridge, MA: Ballinger, 1978.
Dunning, J. H. Multinati onal Enterprise, p. 27, 79.
Fayerweather, J. International Business Management, p. 216.
Etemad, H. “World Product Mandating in Perspective.” Paper presented at the annual meeting of the Academy of International Business, Washington, D.C., October, 1982. For adequate financial controls systems, see Simmonds, K. “Global Strategies and the Control of Market Subsidiaries,” Chapter 11 in this volume.
See: Flaherty, M. T. and Graham, M. B. W. “The Effects of New Communications and Computer-Related Technologies on the Management and Competitiveness of International Manufacturing.” Paper presented at the 8th EIBA Annual Meeting, Fontainebleau, December 1982.
Fayerweather, J. Conceptual Framework, pp. 22–31.
See also Terpstra, V. “The Role of Economies of Scale in International Marketing.” Chapter 4 in this volume.
Luostarinen, R. Internationalization of the Firm. Helsinki: Helsinki School of Economics, 21980, p. 31, 94.
Larréché, J-C. “The International Product/Market Portfolio.” In: H. Thorelli and H. Becker (eds.), International Marketing Strategy. New York: Pergamon, 1980 (rev. ed.), pp. 296–305.
Channon, D. F. and Jalland, M. Multinational Strategic Planning. London: Macmillan, 1980.
Preston, L. E. Strategy-Structure-Performance: A Framework for Organization/Environment Analysis; and Thorelli, H. B. “Introduction to a Theme.” Both in: H. B. Thorelli (ed.), Strategy + Structure = Performance, Bloomington, IN: Indiana University Press, 1977, pp. 30–49 and pp. 3–29.
Wind, Y. and Douglas, S. “International Portfolio Analysis and Strategy: the Challenge of the 80s.” Journal of International Business Studies 12(2): 69–82, 1981.
See: Moxon, R. W. Export Platform Foreign Investments in the Theory of International Production. University of Reading Discussion Papers in International Investment and Business Studies, No. 56, September 1981, for a stronger conceptual orientation.
Leroy, G. Multinational Product Strategy: A Typology for Analysis of Worldwide Product Innovation and Diffusion. New York: Praeger, 1976, p. 24.
Doz, Y. L. Government Control and Multinational Strategic Management. New York: Praeger, 1979, especially pp. 37–43.
Weick, K. The Social Psychology of Organizing. Reading, MA: Addison-Wesley, 1969, p. 64.
Dunning, J. H. Multinational Enterprise, particularly p. 109, et sq.
Hout, T., Porter, M. E., and Rudden, E. “How Global Companies Win Out”. Harvard Business Review 60(5): 98–102, 1982.
Hampton, G. M. and Van Gent, A. International Marketing in the 1980s and Beyond: Research Frontiers. See chapter 12 in this volume.
See: Dunning, J. H. “Multinational Enterprises and Trade Flows of Developing Countries,” In: Dunning, J. H., (ed.), Multinational Enterprise, pp. 304–20, for an economic analysis.
See: Sethi, S. P. and Etemad, H. “Marketing: The Missing Link in Economic Development.” Chapter 7 in this volume.
Fagre, N. and Wells, L. T. Jr. “Bargaining Power of Multinationals and Host Governments.” Journal of International Business Studies 13(2): 9–23, 1982.
Dunning, J. H. “Evaluating the Costs and Benefits of Multinational Enterprises to Host Countries: A Tool-Kit Approach,” In: Dunning, J. H., (ed.), Multinational Enterprise, pp. 357–84, is representative for a rich literature. See also: UNCTC. Transnational Corporations Linkages in Developing Countries. New York: ST/CTC/17 E.81 II A 4, 1981.
Kojima, K. Direct Foreign Investment: A Japanese Model of Multinational Business Operations. London: Croom Helm, 1978.
Drucker, P. F. “Behind Japans Success.” Harvard Business Review 59(1):83–90, 1981.
Tsurumi, Y. Sogoshosha: Engines of Export-Based Growth. Montreal: Institute for Research on Public Policy, 1980.
Bergsten, C. F., Horst, T., and Moran, T. H. American Multinationals and American Interests. Washington, D.C.: Brookings Institution, 1978, p. 297.
Mason, R. H. “A Comment on Professor Kojima’s Japanese Type Versus American Type of Technology Transfer.” Hitotsubashi Journal of Economics 20(2):42–52, 1980.
From the rich literature already reporting on these variables, just one representative publication each can be quoted here: Agmon, T. and Kindleberger, C. P. Multinationals from Small Countries. Cambridge, MA: MIT Press, 1977;
Keegan, W. J. and Heenan, D. A. “The Rise of Third World Multinationals.” Harvard Business Review 57(1): 101–09 1979;
Zurawicki, L. Multinationals in the West and East. Alphen a.d. Rijn: Sijthoff and Noordhoff, 1979.
Baumer, J-M. and von Gleich, A. Transnational Corporations in Latin America. Diessenhofen: Rilegger, 1982;
Takamiya, M. “Japanese Multinationals in Europe: Internal Operations and their Public Policy Implications.” Columbia Journal of World Business 16(Summer): 5–17, 1981.
Neff, N. H. and Farley, J. U. “Advertising Expenditures in the Developing World.” Journal of International Business Studies 11(2):64–79, 1980.
Again, for each variable just one example is listed: Vernon, R. “The International Aspects of State-owned Enterprises.” Journal of International Business Studies 10(3):7–15, 1979;
Steinmann, H., Kumar, N. B. and Wasner, A. “Some Aspects of Managing U.S. Subsidiaries of German Medium-sized Enterprises.” Management International Review 19(3):27–37, 1979;
Turnbull, P. W. “International Aspects of Bank Marketing.” European Journal of Marketing 16(3): 102–05, 1982;
Katz, J. H. Does Foreign Direct Investment Theory Reflect Reality: The Case of the American Multinational Food Processors. M.I.T. Working Paper 1354–82, October 1982.
Soldner, H. “International Marketing: A Typology of Strategies and Attitudes.” In: S. Raveed and Y. R. Puri (eds.), 1977 Proceedings of the Academy of International Business, Chicago: AIB, 1978, pp. 81–83.
Knickerbocker, F. T. Oligopolistic Reaction and the Multinational Enterprise. Boston: Harvard University Press, 1973.
“Why Global Businesses Perform Better.” International Management 38(1):40,1983.
Behrman is more specific with his home-market, host-market and world-market firms, to supplement the earlier resource/market/efficiency seeker MNC-classification. Behrman, J. N. and Fischer, W. A. “Transnational Corporations: Market Orientations and R + D Abroad.” Columbia Journal of World Business 15(3):55–60, 1980.
Fayerweather, J. and Kapoor, A. Strategy and Negotiation for the International Corporation. Cambridge, MA: Ballinger, 1976, pp. 7–24. Focuses on the strategy models of dynamic high- or low/stable-technology, advanced management skills and unified-logistics labor-transmission.
Arndt, J. “The Conceptual Domain of Marketing: Evaluation of Shelby Hunt’s Three Dichotomies Model.” European Journal of Marketing 16(1): 27–35, 1982.
Hunt, S. D. and Burnett, J. J. “The Macromarketing/Micromarketing Dichotomy: A Taxonomical Model.” Journal of Marketing 46(3):11–26, 1982.
Boddewyn, J. J. Comparative Marketing: The First Twenty-Five Years. Journal of International Business Studies 12(1): 62, 73, 1.
See, for instance, Negandhi, A. R. (ed.). Functioning of the Multinational Corporation: A Global Comparative Study. New York: Pergamon, 1980.
More integrative and synthesizing efforts in comparative/international management were already advocated by Schöllhammer, H. “Current Research in International and Comparative Management Issues. Management International Review 15(2–3):29–45, 1975.
See, for example, Skully, M. T. (ed.). A Multinational Look at the Transnational Corporation. Sidney: Dryden Press Australia, 1978.
In recent German literature, attention has been called to the fact that the study of economic phenomena in different countries has produced particular national approaches, conceptualizations, and theory structures used, e.g., by business administration, managerial economics, or the German-Dutch Betriebswirtschaftslehre/Bedrijfskunde. Accordingly, it is a prerequisite for integrative international research to compare the systems of thought, values, and research traditions of the respective disciplines, in the context of their national operational parameters. For comparative marketing and accounting, see: Perridon, L. “Bedeutung der Vergleichenden Betriebswirtschaftslehre für die Führung internationaler Unternehmen” (“Significance of Comparative Business Administration for International Business Management”). In: W. H. Wacker, H. Haussmann, B. Kumar (eds.), Internationale Unternehmensführung, pp. 157–69. For marketing, see: Soldner, H. Marketing (wissenschafts) Vergleiche— Vergleichbares and Unvergleichbares (“Marketing (science) Comparisons—Comparables and Non-comparables”). Marketing ZFP 2(4):285–90, 1980.
For a practical example of thoughtful Anglo-Dutch research integration, see: Van Gent, A. P. Marketing-Ontwikkeling (“Marketing Development”). Leiden: Stenfert Kroese, 1976.
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Soldner, H. (1984). International Business Theory and Marketing Theory: Elements for International Marketing Theory Building. In: Hampton, G.M., van Gent, A.P. (eds) Marketing Aspects of International Business. Nijenrode Studies in Business, vol 7. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-5646-9_3
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