ABSTRACT
When hospitality firms grow abroad, one of the main decision areas is the operational strategy that the firm will implement in the new units or outlets. Thus, they can follow a standardization approach by replicating the practices or systems at home, or an adaptation approach by trying to adapt to local circumstances. The conceptual principles of both extreme options are discussed. As many companies opt for the standardization approach with varying degrees of knowledge replication, the knowledge transfer dynamics entailed in this option are presented, along with the adaptation efforts in the transfer. A case study of the internationalization efforts of a German firm operating in the restaurant sector is displayed to show the strategic relevance of these aspects. In the beginning, the firms allowed for a decentralized approach that allowed for adaptation to the local market, but due to some management problems a standardization strategy was then implemented.
