A Model of Advertising Standardization in Multinational Corporations

Abstract

Although there have been several studies concerning the issue of advertising standardization, few authors have proposed an integrated model of the determinants of advertising standardization Even if the extent of control of Multinational Corporations (MNC) over their subsidiaries is often cited as a key element in the determination of the level of advertising standardization adopted by the MNCs, there is no consistent view concerning the role of this variable. This paper attempts to clarify these points by proposing, at the MNC level, a measurement model and a structural model for the determinants of the degree of advertising standardization. In this model, the mediation effect of the MNC's degree of control over the subsidiary is tested and validated. In addition, the measurement instruments used for the determinants are confirmed.