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Competition barriers and foreign subsidiary growth: propositions on the contextual role of strategic orientation
Linnaeus University, Växjö, Sweden.
Halmstad University, School of Business, Engineering and Science, Centre for Innovation, Entrepreneurship and Learning Research (CIEL).
2015 (English)In: International Journal of Business Competition and Growth, ISSN 2042-3845, Vol. 4, no 1/2, p. 3-23Article in journal (Refereed) Published
Abstract [en]

A foreign subsidiary's way of breaking through exogenous barriers to competition triggers growth of the subsidiary and the firm as a whole. This article contributes to literature on international business strategy by developing a conceptual framework that underscores the contextual role of subsidiary's strategic orientation in breaking through the barriers. Propositions are developed based on analysis of four high growth subsidiaries of Swedish industrial firms operating in the USA. The propositions distinguish types of exogenous competition barriers encountered by the foreign subsidiary, and types of strategic orientation. First, it is proposed that the more extensive the foreign subsidiary's entrepreneurial orientation the weaker the negative association between a scale barrier and subsidiary's growth. Second, it is proposed that the more extensive the foreign subsidiary's market orientation the weaker the negative association between customer access barriers and subsidiary's growth. Contributions to literature and practical implications are discussed.

Place, publisher, year, edition, pages
Olney: InderScience Publishers, 2015. Vol. 4, no 1/2, p. 3-23
Keywords [en]
competition barriers, subsidiary growth, strategic orientation, entrepreneurial orientation, market orientation, entrepreneurship, foreign subsidiaries, international business strategy, Sweden, USA, United States, customer access barriers
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hh:diva-27106DOI: 10.1504/IJBCG.2015.070661OAI: oai:DiVA.org:hh-27106DiVA, id: diva2:765830
Note

This paper is a revised and expanded version of a paper entitled ‘Entrepreneurial orientation and subsidiary’s knowledge-based growth on foreign markets’ presented at the 56th Annual Conference of the Academy of International Business, Vancouver, Canada, 23–26 June 2014. The work was financially supported by Linnaeus University.

Available from: 2014-11-25 Created: 2014-11-25 Last updated: 2018-03-22Bibliographically approved

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Pehrsson, Tobias

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf