Dependence, Trust, and Relational Behavior on the Part of Foreign Subsidiary Marketing Operations: Implications for Managing Global Marketing Operations

Abstract

The authors explore how a global firm's ability to foster successful relationships between its foreign subsidiaries’ and headquarters’ marketing operations can enhance the performance of products across markets. The results show that cooperative behaviors are positively associated with product performance in the subsidiaries’ markets. National culture in the foreign markets is also found to moderate the effect of trust on relational behaviors. In addition, the subsidiaries’ acquiescence becomes increasingly important as the firm attempts to standardize marketing programs.