The GMS: A Broad Conceptualization of Global Marketing Strategy and Its Effect on Firm Performance

TLDR

Despite strong interest in global marketing, the literature lacks consensus on what constitutes a global marketing strategy or its impact on firm performance. The study aims to develop a broad conceptualization of global marketing strategy (GMS) that integrates standardization, configuration–coordination, and integration perspectives. The authors construct a conceptual model linking the GMS to a firm's global market performance. Survey evidence from business units in global industries confirms the broad GMS perspective and its positive relationship with firms' global market performance, highlighting theoretical and managerial implications.

Abstract

Despite the strong interest in global marketing, there is no consensus in the literature about what constitutes a global marketing strategy and whether it affects a firm's global market performance. The authors develop a broad conceptualization of global marketing strategy, the GMS, that integrates three major perspectives—namely, the standardization, configuration–coordination, and integration perspectives—of global marketing strategy. They also develop a conceptual model that links the GMS to a firm's global market performance. On the basis of a survey of business units competing in global industries, the authors find support for the broad GMS perspective and the fundamental relationship between the GMS and firms' global market performance. The authors also discuss theoretical and managerial implications of their findings.