Relationship between Product Standardization vs. Adaptation (Customization) Strategy and Global Performance

Product standardization versus adaptation (customization) strategy is a key issue in international marketing strategy. Product standardization versus adaptation strategy is not a concept that is only applicable to international marketing. In other words, standardization versus adaptation is a strategy that can be implemented within a country. Therefore, this study analyzed how companies that conduct business targeting the domestic market only (non-global marketing-performed firm) versus companies with global marketing-performed firms utilize the standardization versus customization strategy, considering the size of the company. And this study analyzed the relationship between product standardization versus adaptation (customization) strategy and global performance using data from STEPI's Korea Enterprise Innovation Survey: Manufacturing in 2022 and 2020. The findings of this study are as follows. First, global marketing-performed companies were found to have relatively higher rate in their marketing product strategies (product standardization or customization strategy) compared to non-global marketing-performed companies. Second, in terms of global marketing product strategy, in general, product customization was found to produce better performance in terms of overseas sales amount than product standardization, but the results were mixed in terms of overseas sales growth rate depending on the time. In terms of overseas sales share, the results were mixed in that standardization was negative and customization was positive. Third, the relationship between international marketing product strategy (standardization versus customization) and global performance (overseas sales amount, overseas sales share, overseas sales growth rate) was partially moderated by company size, and these results seemed to vary depending on the time.