International product strategy regarding global standardisation and local adaptation is one of the challenges faced by multinational corporations (MNCs). Studies in this area have tested the antecedents and consequences of standardisation/adaptation, but lack a new product development (NPD) perspective. In this study, we explore how product standardisation/adaptation is determined in the NPD context. Through a qualitative case study of four MNCs, we found three NPD approaches: multi-local, adaptation-based and platformbased. We analysed the advantages and challenges of each approach. In addition, we reveal how the factors (development of information and communication technology, competition pressure, brand awareness and technical capability) could influence the choice of a certain NPD approach. We draw implications on the paths to ensuring full leveraging of the benefits of a platform-based approach.
Introduction
Multinational corporations (MNCs) are believed to be at the forefront of organisational and managerial innovations (Bélanger et al., 1999), as they face the challenges of global competition and the management of worldwide activities resulting in greater complexity than that faced by domestic firms (Bartlett and Ghoshal, 2000; Yip, 2003). One of the challenges in MNCs is the development of international product strategy regarding global standardisation and local adaptation (Katsikeas et al., 2006; Kotabe, 1990). In many industries, there are still different market requirements across countries in terms of customer tastes, local conditions and regulations (Gooderham, 2012; Rugman and Hodgetts, 2001). MNCs need to identify commonalities and differences in requirements and offer products accordingly (Kotler, 1986; Levitt, 1983).
Theoretical contributions
In this study, we bridge the areas of research in terms of international product strategy (standardisation/adaptation) and NPD in MNCs through proposing an NPD perspective on international product strategy. In prior studies, these two areas have largely been studied independently. By bridging the two areas, we contribute to the understanding of international product strategy, in particular how it is determined within the context of NPD.
