Launching new global products into subsidiary markets: The vital role of sales and marketing collaboration

Abstract

We examine how to encourage collaboration between local sales and marketing teams in multinational enterprise (MNE) subsidiaries in order to successfully commercialize new product launches by creating integrated, locally adapted implementation plans. Empirical research within six subsidiaries of an MNE operating in southern Latin America found that centrally produced processes alone were insufficient for successfully launching new products in these subsidiary markets. However, devolving power, while using cross‐functional teams and formalized processes to encourage communication, led to the development of the types of trust that facilitate effective relationships between sales and marketing teams, which resulted in successfully adapted new product launches for each subsidiary market. We discuss the implications of our findings for theory and practice.

Launching new products in international markets: waterfall versus sprinkler strategy of Korean SMEs

“…In addition, recent studies in international business and marketing have identified that product, organizational and foreign market characteristics contribute to a firm's product strategy (Harvey and Griffith, 2007; Le Meunier-FitzHugh et al. , 2021; Rubera et al.…”

“…Consistent with contingency theory, we expect a direct relationship between the market environments in which a firm operates and its product strategy. The new product literature indicates that a product strategy varies depending on contingent variables in a dynamic environment (Harvey and Griffith, 2007; Le Meunier-FitzHugh et al. , 2021; Rubera et al.…”

“…In addition, recent studies in international business and marketing have identified that product, organizational and foreign market characteristics contribute to a firm's product strategy (Harvey and Griffith, 2007;Le Meunier-FitzHugh et al, 2021;Rubera et al, 2012;Townsend et al, 2009;Yeniyurt et al, 2007). For example, Yeoh (1994) suggests that the adoption of a heterogeneous product strategy among firms is attributable to the technological familiarity of a new product, product differentiation, market competition, source of technology and country of origin.…”

“…Consistent with contingency theory, we expect a direct relationship between the market environments in which a firm operates and its product strategy. The new product literature indicates that a product strategy varies depending on contingent variables in a dynamic environment (Harvey and Griffith, 2007;Le Meunier-FitzHugh et al, 2021;Rubera et al, 2012;Townsend et al, 2009;Yeniyurt et al, 2007). Decisions regarding the introduction of new products are challenging and often risky because of the unpredictability brought on by dynamic changes in global markets.…”

“…This phenomenon has drawn increasing attention to international marketing decisions pertaining to a firm's new product launch, which helps improve firm performance (Giannetti and Rubera, 2020;Griffith and Yalcinkaya, 2018). In fact, nowadays, more firms are concerned with the implementation of effective international new product strategies rather than with the question of whether to launch products in overseas markets (Klingebiel and Joseph, 2022;Le Meunier-FitzHugh et al, 2021). In the international marketing literature, the notion of product strategy has been long discussed and is often viewed as a major component of marketing strategies for international marketers.…”