Exploring the effects of subsidiary interdependence on the performance of global product launches

We explore the effects of subsidiary interdependence on global product launch performance using a case-study design combining quantitative and qualitative data collected from subsidiaries participating in the global launch of a new drug by a major pharmaceutical multinational enterprise. The study combines pre-launch survey data on subsidiary interdependence with post-launch quantitative performance data to select eight of 67 subsidiaries involved in a global product launch. We also analyse information gathered through in-depth interviews with 19 subsidiary managers to explore various facets of the relationship with their headquarters and other subsidiaries. Our findings suggest that the positive effect of interdependence on global product launch success varies with subsidiaries’ involvement in decision-making, with the division of labour and responsibilities, and with the existence of cognitive, relational and structural social capital. Based on our findings, we present several propositions regarding the effects of subsidiary interdependence on the success of global product launches

How Independence and Interdependence Moderate the Self-Congruity Effect on Brand Attitude: A Study of East and West

yesDespite a substantial body of self-congruity (SC) research (cf. Aguirre-Rodriguez, Bosnjak, & Sirgy, 2012) two important questions remain open: First, does the SC effect apply beyond Western countries. Second, does individual level culture moderate the SC effect? This study contributes to SC theory by developing hypotheses on the validity of the four SC effects across East and West and by studying the moderating impact of the individual level cultural variable self-construals on those four effects. This study tests its hypotheses through a survey of over 1,600 consumers in an Eastern (India) and a Western (USA) country. Results show that the overall actual SC effect holds across East and West, while the ideal SC effect holds across contexts yet only for consumers with an independent self-construal. Meanwhile, the social SC effect holds in the Eastern but not in the Western context, while the ideal social SC effect does not hold in either context. Results further show a moderating effect of individual level culture on the SC effect, as the actual SC effect is stronger for interdependent consumers whereas the ideal SC effect is stronger for independent consumers across contexts. Finally, the findings of this study are used to advance managerial implications and to propose a refinement of SC theory

Risk, trust, and consumer online purchasing behaviour: a Chilean perspective

Purpose: The purpose of this study is to investigate Latin American online purchase behaviour with a specific focus on the influence of perceived risk and trust. While studies of this nature have been conducted quite extensively in developed countries, their application in developing countries, such as Latin America is limited. Our study addresses this gap in the literature with an empirical study conducted in Chile. Design/methodology/approach: The authors develop and test a proposed model of the influence of consumer’s perceptions of risk and trust on their attitudes and intentions to purchase on the Internet. An online survey method is used. The sample consists of 176 Chilean consumers who have made at least one purchase online. The data is analysed using structural equation modelling technique (SEM). Findings: The analysis revealed that of the perceived risk and trust factors examined, trust in third party assurances and a cultural environment of trust had the strongest positive influence on intentions to continuing purchasing online. Perceived risk had an inverse relationship with attitude and consumers’ attitude has a positive influence on intentions to purchase online. Trust in online vendors and a propensity to trust were both insignificant. Practical implications: Practically, these results identity which risk and trust beliefs towards purchasing online have the most effect thereby providing insights into how companies should seek to mitigate perceptions of risk to encourage new and return purchasers. Additionally, this research shows that consumers in a Latin American country, recognised as a collectivist, high risk avoidance culture, are willing to make purchases online despite the risks involved. Originality/value: The study and its results is one of few available that consider a Latin American context. The value of the findings provides insights into the specific risk and trust factors that influence Chilean consumers when considering purchasing online. The tested model adds value not only to the literature on Latin American consumer behaviour but also provides guidance for companies offering online retailing facilities in these less developed countries

Is preference for global brands in emerging markets determined by true globalness or mere foreignness?

The complementary literatures on perceived brand globalness and brand origin posit that consumers in emerging markets prefer nonlocal over local brands because they perceive such brands as being global and foreign, respectively. This study bridges these two literatures by disentangling the effects that perceptions of brand globalness and foreignness have on brand preference with consumers in emerging markets, i.e., consumers for whom most global brands are also foreign. Specifically we present two alternative models of how perceived brand globalness and perceived brand foreignness interact to impact purchase likelihood. In model 1, perceived brand foreignness mediates the impact of perceived brand globalness on purchase likelihood. In model 2, perceived brand globalness and perceived brand foreignness impact purchase likelihood independently but through shared mediators. We use categorization theory to justify the expectation that consumers in emerging markets will prefer global brands because of their foreignness rather than their globalness

Regionalization vs. globalization in advertising research: Insights from five decades of academic study

This paper is a response to calls for more research into the regional-as opposed to global-level of international business operations (Rugman and Verbeke, 2004). Focusing on a key issue in international management, the standardization decision, this paper presents a systematic review of top journal articles published over the last five decades on the subject of advertising standardization at the regional level. The results of this review demonstrate that in the last decade studies have frequently taken a regional rather than international focus of analysis, suggesting a shift in research in line with regionalization theory. However, this study also shows that research on regional standardization has lacked consistency in relation to how the phenomenon should be defined and measured. We present a conceptualization of measurement approaches to international advertising standardization, propose a typology of approaches and discuss their implications for knowledge advancement in the area.International advertising Regional advertising Advertising standardization measurement Literature review

Materialism, cosmopolitanism, and emotional brand attachment : the roles of self-congruity and perceived brand globalness

This study investigates how materialism and cosmopolitanism affect emotional brand attachment, a key driver of consumer brand equity. Further, it sheds light onto the contingent role of ideal self-congruity and perceived brand globalness in such relationships. The study uses a cross-sectional online survey of consumers of electronic brands in a market of major economic importance, China, where global brands of domestic and foreign origin engage in head-to-head competition. Based on data on 623 consumer-brand relationships, the study shows that materialism and cosmopolitanism are positively associated with emotional brand attachment when brands are high in ideal self-congruity, i.e., when they reflect an aspirational, idealized view of the consumer’s self. Further, the study shows that materialists (but not cosmopolitans) show emotional attachment to brands perceived as global, even when such brands are low in aspirational value. The study uncovers two new antecedents of emotional brand attachment and presents implications for managers making segmentation and brand strategy decisions