The Role of Economies of Scale in International Marketing

Author(s):  
Vern Terpstra
2000 ◽  
Vol 8 (1) ◽  
pp. 78-98 ◽  
Author(s):  
Carl Arthur Solberg

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.


Author(s):  
Abir Zouari ◽  
Damien Chaney

Research in international marketing has long shown that foreign firms face disadvantages when operating abroad from a lack of familiarity with the local institutional environment. To cope with this familiarity, some companies have developed a culture in the ability to understand and take into account the institutional dimensions of the destination market. This article thus aims to explore the institutional orientation of firms and tests its impact on export performance. In Study 1, we develop and validate a 12-item measurement scale divided into four dimensions. In Study 2, we investigate the role of institutional orientation in export performance using a sample of 273 French and Tunisian exporting companies. The results show that this relationship is not direct but is mediated by export commitment.


1986 ◽  
Vol 3 (2) ◽  
pp. 17-21 ◽  
Author(s):  
Michael E. Porter

Author(s):  
Giacomo Büchi ◽  
Monica Cugno ◽  
Rebecca Castagnoli

This paper analyses the role of cost differentials in the fourth industrial revolution. It uses a literature review in order to identify origins, definitions, enabling technologies and changes in company productivity. Research results show how certain Industry 4.0 enabling technologies help obtain better economic results in mass production and others that support new production models in mass production: mass customization and mass personalization. This paper is of a theoretical nature and identifies certain reflections concerning Industry 4.0’s role in managerial literature by providing interesting lines to be developed in future directions of research.


Author(s):  
А.А. Mukhin

Several alternative economic approaches to the study of organization are discussed in the literature: the neoclassical theory, the theory of transaction costs (the theory of specific assets), the theory of incomplete contracts (the theory of property rights), and the Agency theory (the theory of incentives). Recently, there have been approaches at the intersection of Economics and management: resource theory, knowledge theory, strategic theory, entrepreneurial theory; in the framework of sociology: network theory, the theory of resource dependence, the theory of institutional isomorphism, the theory of situational choice, the theory of strategic choice. The article deals with the basic model of neoclassical theory. The advantage of the neoclassical theory is that it emphasizes the role of technology in General and economies of scale in particular as factors that influence the size of production, turnover of organizations. Within the framework of the considered approach, a certain macrostructure is determined that carries out the costs of economic resources: fixed assets, the number of employees that affect the turnover of organizations. The task of rational economic management, which meets the Udmurt Republic, is to determine the forecast of turnover of organizations with the given resources and to calculate the necessary for its value of fixed assets, the number of employees.


2021 ◽  
Author(s):  
Giacomo Di Foggia ◽  
Massimo Beccarello

After having divided waste management cost in its cost items, we focus on how well-known exogenous and endogenous drivers impact on such cost items. To this end, we collected empirical data of 6,616 Italian municipalities for a two-year period. We develop four regression-based models to analyze the data according to cost items. Models are also reiterated using different data normalization: cost per ton of waste or waste per capita. Besides exogenous determiners of cost, such as altitude, population density, and coastal zone, results refer to both unsorted and sorted waste management cost items. In this respect economies of scale are confirmed along with the critical role of adequate waste facilities that play a remarkable role in cost minimization. Policymakers and regulators may benefit from such results when it comes to define allowed revenues and design the scope of municipal solid waste regulation.


Author(s):  
Peter McKinlay

The purpose of this paper is to provide a ‘work in progress’ report on some initiatives emerging from local government practice in New Zealand which should help us consider how we think about the role of local government in a world which is undergoing dramatic change. The starting point is work which the writer undertook with the support of Local Government New Zealand (the national association) and a number of New Zealand councils considering the ‘proper role’ of local government. The context is an ongoing public debate driven substantially by the New Zealand business community from a perspective that this ‘proper role’ should be restricted to the delivery of local public goods, narrowly defined. This has included argument that local governments themselves should be structured substantially to promote the efficient delivery of services generally within the now well understood prescriptions of the ‘new public management’. One implication which the business sector in particular drew in looking at the workings of local government was that there should be economies of scale through further amalgamation of councils (the local government sector having been through a major amalgamation process in 1989 which eliminated a large number of special purpose authorities and reduced the number of territorial local authorities from more than 200 to 73). Debate continues, with the latest manifestation being the National Party led government's proposals for the restructuring of local government within the Auckland region, New Zealand's major metropolitan area. The initiatives discussed in this paper are partly a response, but more significantly a result of selected local authorities reflecting on the nature of their role, and the opportunities for being proactive in using their statutory privileges in ways that could produce benefits for their communities without any associated increase in the cost of local government itself.


2008 ◽  
Vol 39 (2) ◽  
pp. 37-44 ◽  
Author(s):  
C. H. Van Heerden ◽  
C. Barter

Given that culture is an important factor in the international environment, it is a necessity that culture be well understood in order to achieve success in international marketing strategies. Previous research focused more on the broader influence of culture on marketing strategies, with few studies focusing on the way in which culture and marketing affect and are effected by one another, culture’s role in the localisation or standardisation of a marketing strategy, as well as which elements of the marketing strategy to standardise versus localise. The sample was drawn from key employees working within reputable multinational organisations in South Africa. No hypotheses were formulated or tested but instead this exploratory study identified areas, which have not been researched in South Africa and eight propositions based on the findings were formulated. The findings indicate that culture plays a very important role in the overall formulation of an international marketing strategy, and it was not conclusive whether such a strategy should be standardised or whether it should be localised. Generally, the responses suggest that a marketer’s strategy should suit the local culture in order to reach them and have the desired effect on the target market, and not the other way around because such evolutions could take an extensive amount of time in order to achieve marketing goals.


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