Planned Marketing Adaptation and Multinationals' Choices Between Acquisitions and Greenfields

Slangen, Arjen H. L. and Dikova, Desislava (2014) Planned Marketing Adaptation and Multinationals' Choices Between Acquisitions and Greenfields. Journal of International Marketing , 22 (2). pp. 68-88. ISSN 1069-031X


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International marketing studies have extensively examined the antecedents of firms' marketing standardization/ adaptation decisions. However, it is unclear whether such decisions, once planned, codetermine the choice between buying and building foreign subsidiaries. Analyzing a sample of 150 foreign entries by Dutch firms, the authors find that the level of marketing adaptation planned for a wholly owned subsidiary is positively related to the likelihood that the subsidiary will be established through an acquisition rather than through a greenfield investment. Moreover, the authors find substantial evidence that this positive relationship is stronger for firms that (1) are establishing relatively larger subsidiaries, (2) have less experience with the industry entered, or (3) are entering less developed countries. The findings show that firms pursuing higher levels of marketing adaptation assign more value to the marketing adaptation advantages of acquisitions over greenfields, especially if the risks associated with implementing the planned adaptation level are high. In addition, firms typically strive for a fit between their international marketing strategy and their mode of foreign establishment. (authors' abstract)

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription.
Keywords: acquisitions / establishment mode choice / greenfields / planned marketing adaptation
Divisions: Departments > Welthandel > International Business
Version of the Document: Published
Variance from Published Version: None
Depositing User: ePub Administrator
Date Deposited: 01 Dec 2014 10:53
Last Modified: 01 Jun 2015 12:55
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