Managerial resource allocation and international performance

The “global village” phenomenon has resulted in an increase in the number of articles devoted to examinations of international marketing strategy and, importantly, to its impact on international performance. Notably, previous research has examined the impact of standardization (versus adaptation) and the content of marketing strategies on performance. There is little empirical work on the relationship between the resource devoted to international operations and the success achieved in these operations. Given the important performance implications of this relationship, the research reported here adds to this limited body of research. First, it uses three measures of resources allocated to international operations, including international strategic planning, an underutilized construct in international research. Second, it includes two performance dimensions: objective and subjective (satisfaction). Third, it examines the relationships between allocated resources and the two performance dimensions. Finally, it examines these relationships in Israel, thus extending the generalizability of previous research. The relationship is tested with data from Israeli respondents to a mail survey. The results are used to generate international research and managerial implications.