Educator Insights: Standardization or Adaptation of the International Marketing Mix: The Role of the Local Subsidiary/Representative

In this article, the author suggests that the standardization versus customization issue in international marketing has important organizational aspects that are often neglected in the literature. The author parts from the traditional culture and economies of scale approaches by introducing a taxonomy of international marketing organizations based on headquarters versus subsidiary decision power and on market knowledge at headquarters. The author then suggests a typology of organizational solutions—local baronies, civil war, confederation, and federation—and describes two case studies to illustrate how firms “travel” in the model. Finally, the author develops several propositions and discusses managerial implications.