Grounded theory of marketing strategy based on partnership and underpinned by culture: Japanese and Korean electronics companies in the UK

Abstract

Abstract An extensive literature review was undertaken that brought out the salient points relating to strategic marketing; marketing strategy; customer service; relationship marketing; retailing strategy; the link between organizational culture and national culture; leadership; long-term partnership arrangements;and the similarities and differences between Japanese and Korean culture. The research strategy incorporated exploratory research and in particular the in-depth personal interview method; the small group interview method; the critical friendship group method; and the postal survey method. This allowed the researcher to understand the mindset of Japanese and Korean people; provided a basis for the researcher to better understand and address culturally sensitive issues that would arise during the main data collection process; make a link between national cultural values and organizational values. The grounded theory approach was used to analyse and interpret the data collected from the in-depth personal interview method involving five staff in two companies: a Japanese electronics company based on the UK and a Korean electronics company based on the UK. The research established that national cultural value systems do have an influence on management style and organizational behaviour. Both Japan and Korea embraced Buddhism and Confucianism in a different way (emphasis, purpose and sequence). This is why the national cultural characteristics and values of the people from these two cultures are different. The strategic marketing approach is valid and is deployed by both Japanese and Korean electronics companies based in the UK, however, the approach of the Japanese managers to strategic marketing is more advanced than the strategic marketing approach deployed by Korean managers. Both Japanese and Korean electronics companies based in the UK have a clearly defined marketing strategy that is focused on customer service that is underpinned by a clear commitment to partnership arrangements. Partnership arrangements are based on trust and are considered to be long-term in orientation. Although Japanese and Korean electronics companies based in the UK have a customer service policy that is incorporated within a strategic marketing framework, customer service policy is deployed differently. In order for Japanese and Korean electronics companies based in the UK to achieve financial success (defined as financial gain in the long-term), marketing is perceived as an integrated process that is strategic in nature. Japanese and Korean managers feel comfortable working in terms of a strategic marketing framework and are sensitive to the feelings of local people. Hence a hybrid organizational culture exists. However, the organizational culture that exists in Japanese electronics companies based in the UK is different from that that exists in Korean electronics companies based in the UK. This is due to a distinct organizational learning policy. Although organizational learning is viewed as important with respect to improving an organization's performance, how it is practised in Japanese electronics companies based in the UK is different from that adopted and deployed by Korean electronics companies based in the UK. This can be attributed to such factors as the style of management; the degree of management control; and the way in which relationships are built and managed. As regards the development of partnership arrangements, although managers in Japanese and Korean electronics companies based in the UK consider that business relationships are to have a long-term orientation, it should be noted that in the case of Japanese electronics companies based in the UK, there are clear power based relationships in being that influence how individuals interact and make and implement decisions. In the case of Korean electronics companies based in the UK, the concept of mutuality is dominant and this influences how individuals interact, make and implement decisions.