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Pehrsson, A. (2019). Business relatedness in international diversification: Achievements, gaps, and propositions. European Business Review, 31(2), 197-217
Open this publication in new window or tab >>Business relatedness in international diversification: Achievements, gaps, and propositions
2019 (English)In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 31, no 2, p. 197-217Article in journal (Refereed) Published
Abstract [en]

Purpose Business relatedness is important in international diversification because it enables a firm's transfer of resources to business units operating in foreign markets. The purpose of this paper is to develop a conceptual model based on a review of the major contributions of studies regarding the relatedness of subsidiaries, joint ventures or any other foreign unit. Design/methodology/approach The paper examines theory bases, the relatedness construct, data issues and the key achievements of previous studies. Drawing on organizational learning, transaction costs economics and industrial organization, a conceptual model and propositions are developed that intend to close important research gaps. Findings The model includes competitive strategy as a mediator of the effects of relatedness on foreign unit performance, type of foreign unit - that is, a wholly owned unit or joint venture - as a moderator; and competition barriers as a moderator. Research limitations/implications In future research, the propositions need to be transformed into testable hypotheses. It is recommended to treat relatedness as a multidimensional concept. Practical implications A firm is primarily advised to evaluate how its relatedness with foreign units enables knowledge transfer. A foreign cost leadership strategy benefits from product relatedness, while a differentiation strategy calls for resource relatedness. Originality/value The proposed model is unique as it includes an actionable component that mediates the effects of relatedness on international performance, i.e. competitive strategy, and concerns both wholly owned foreign units and international joint ventures.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2019
Keywords
Competitive strategy, Subsidiary, International diversification, Joint venture, Business relatedness
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-86868 (URN)10.1108/EBR-03-2018-0069 (DOI)000470893900003 ()
Available from: 2019-07-16 Created: 2019-07-16 Last updated: 2019-07-16Bibliographically approved
Pehrsson, A. (2019). When are innovativeness and responsiveness effective in a foreign market?. Journal of International Entrepreneurship, 17(1), 19-40
Open this publication in new window or tab >>When are innovativeness and responsiveness effective in a foreign market?
2019 (English)In: Journal of International Entrepreneurship, ISSN 1570-7385, E-ISSN 1573-7349, Vol. 17, no 1, p. 19-40Article in journal (Refereed) Published
Abstract [en]

Good managerial understanding of the mechanisms underlying the effectiveness of entrepreneurial orientation (EO) and market orientation (MO) in dynamic foreign markets improves the international competitiveness of the entire firm. Drawing on the dynamic capability view, this study contributes to the international strategy and entrepreneurship literature by extending our understanding of the actionable components of the EO/MO of firms' foreign units, that is, innovativeness and responsiveness. The study examines relationships between the actionable components and the performance of industrial firms' wholly owned subsidiaries and cooperative arrangements in foreign markets. The results indicate that innovativeness and responsiveness are directly and positively associated with the performance of the foreign unit. Higher institutional barriers make innovativeness less effective, while full ownership strengthens the positive relationship with responsiveness. Contributions to the literature are discussed.

Place, publisher, year, edition, pages
Springer, 2019
Keywords
Entrepreneurial orientation, Market orientation, Innovation, Responsiveness, Performance, Subsidiary
National Category
Economics and Business
Research subject
Economy
Identifiers
urn:nbn:se:lnu:diva-82542 (URN)10.1007/s10843-018-0242-7 (DOI)000465613500002 ()
Available from: 2019-05-14 Created: 2019-05-14 Last updated: 2019-05-14Bibliographically approved
Pehrsson, A. & Rollins, M. (2018). Market knowledge and dynamic capabilities in creating competitive advantage in an international new venture. In: Proceedings of the 51st Hawaii International Conference on System Sciences: . Paper presented at The 51st Hawaii International Conference on System Sciences, Waikoloa, USA, January 3-6, 2018 (pp. 4301-4308). Honolulu: University of Hawai'i Press, 51
Open this publication in new window or tab >>Market knowledge and dynamic capabilities in creating competitive advantage in an international new venture
2018 (English)In: Proceedings of the 51st Hawaii International Conference on System Sciences, Honolulu: University of Hawai'i Press, 2018, Vol. 51, p. 4301-4308Conference paper, Published paper (Refereed)
Abstract [en]

This paper focuses on market knowledge and dynamic capabilities in creating competitive advantage in a local unit of an International New Venture (INV). This paper draws on the knowledge-based view of the firm and builds a conceptual model that illustrates the impact of broad and deep market knowledge on the local unit’s competitive advantage and performance. It is proposed that the INV unit needs dynamic capabilities in order to efficiently convert market knowledge into competitive advantage and then performance. Managerial implications, next steps of the research, and avenues for the future research are discussed.

Place, publisher, year, edition, pages
Honolulu: University of Hawai'i Press, 2018
Series
Proceedings of the Hawaiian International Conference on System Sciences
Keywords
Knowledge Society, Culture, Knowledge Systems, Knowledge Management, Market knowledge, Dynamic capabilities, International New Ventures
National Category
Business Administration
Research subject
Economy, Marketing
Identifiers
urn:nbn:se:lnu:diva-69536 (URN)9780998133119 (ISBN)
Conference
The 51st Hawaii International Conference on System Sciences, Waikoloa, USA, January 3-6, 2018
Available from: 2018-01-02 Created: 2018-01-02 Last updated: 2018-01-16Bibliographically approved
Pehrsson, A. (2017). Foreign subsidiaries’ competitive strategy: the impact of corporate support and local competition. European Business Review, 29(6), 606-627
Open this publication in new window or tab >>Foreign subsidiaries’ competitive strategy: the impact of corporate support and local competition
2017 (English)In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 29, no 6, p. 606-627Article in journal (Refereed) Published
Abstract [en]

Purpose – The study draws on the resource-based view and the contingency view of strategy. The purposeof this paper is to contribute to international strategy literature by extending the current understanding offoreign subsidiary’s competitive strategy in terms of cost leadership and product differentiation.

Design/methodology/approach – Hypotheses concern associations between corporate supportbuilding on product and skills relatedness and subsidiary strategies. Also, it is hypothesized that strategiesare due to the type of local competitive intensity. The hypotheses were tested on wholly owned subsidiaries ofSwedish industrial firms in Germany, the UK and the USA.

Findings – Product and skills relatedness between the subsidiary and the corporate core unit are positivelyassociated with the subsidiary’s emphasis on cost leadership. Also, a positive association was found betweenskills relatedness and product differentiation, and extensive competitive intensity strengthens therelationship.

Research limitations/implications – The study specifies what business relatedness is needed for asubsidiary’s competitive strategy; skills relatedness is more important than product relatedness; thetype of local competitive intensity is important; corporate support and local strategy operatesimultaneously.

Practical implications – Management is advised to implement a foreign subsidiary’s competitivestrategy by recognizing the mechanisms identified in this study.

Originality/value – In a unique way, the study captures the role of corporate support of a foreignsubsidiary’s competitive strategy relying on business relatedness and the importance of aligning the strategywith competitive intensity.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2017
Keywords
Competitive strategy, Competition, Foreign subsidiary, Business relatedness
National Category
Business Administration
Research subject
Economy, Marketing
Identifiers
urn:nbn:se:lnu:diva-69537 (URN)10.1108/EBR-04-2017-0068 (DOI)000416648900001 ()
Available from: 2018-01-02 Created: 2018-01-02 Last updated: 2018-05-17Bibliographically approved
Pehrsson, A. (2017). How does a foreign unit's differentiation strategy fit the competition context?. In: Paper presented at the 43nd Annual Conference of the European International Business Academy (EIBA), Milan, Italy, December 14-16, 2017: . Paper presented at The 43nd Annual Conference of the European International Business Academy (EIBA), Milan, Italy, December 14-16, 2017. European International Business Academy (EIBA)
Open this publication in new window or tab >>How does a foreign unit's differentiation strategy fit the competition context?
2017 (English)In: Paper presented at the 43nd Annual Conference of the European International Business Academy (EIBA), Milan, Italy, December 14-16, 2017, European International Business Academy (EIBA) , 2017Conference paper, Published paper (Refereed)
Abstract [en]

This study contributes to international business literature by addressing the important issue of contextual boundaries to the effectiveness of differentiation strategies of industrial firms’ foreign units, notably wholly owned subsidiaries and co-operations. A model was tested using data from 166 foreign units of Swedish firms. For the first-tier boundary of price competition, a positive association was found between technology leadership and the unit’s performance. The association between market responsiveness and performance is strengthened if the firm is the sole owner of the unit and is able to fully control the strategy. For value-based competition, a positive association was found between market responsiveness and performance. Here, the second-tier boundary of market experience strengthens the association between technology leadership and performance. Contributions to literature are discussed.

Place, publisher, year, edition, pages
European International Business Academy (EIBA), 2017
Keywords
International strategy, Competition, Market experience
National Category
Business Administration
Research subject
Economy; Economy, Marketing
Identifiers
urn:nbn:se:lnu:diva-69535 (URN)
Conference
The 43nd Annual Conference of the European International Business Academy (EIBA), Milan, Italy, December 14-16, 2017
Available from: 2018-01-02 Created: 2018-01-02 Last updated: 2018-03-02Bibliographically approved
Pehrsson, A. (2017). International Firms’ Market Orientation and Use of Knowledge: Implications for Market Information Systems. In: Proceedings of the 50th Hawaii International Conference on System Sciences: . Paper presented at 50th Hawaii International Conference on System Sciences, Manoa, Hawaii, USA, January 4-7, 2017 (pp. 4596-4602). Manoa, Hawaii, USA: University of Hawai'i at Manoa
Open this publication in new window or tab >>International Firms’ Market Orientation and Use of Knowledge: Implications for Market Information Systems
2017 (English)In: Proceedings of the 50th Hawaii International Conference on System Sciences, Manoa, Hawaii, USA: University of Hawai'i at Manoa , 2017, p. 4596-4602Conference paper, Published paper (Refereed)
Abstract [en]

Efficient dissemination of market knowledge within the industrial firm is essential to global competitiveness. However, use of knowledge regarding firm’s foreign markets needs more attention in research. This paper extends the understanding of the industrial firm’s use of its stock of market knowledge. Relying on the knowledge-based view of the firm and the market orientation construct, a conceptual model and propositions are developed. These focus on associations between foreign subsidiary’s value-adding scope and its growth, and the moderating roles of market knowledge created locally, or somewhere else in the corporation. An understanding of the importance of knowledge of foreign markets and use situations will facilitate the design of market information systems that include creation and sharing of knowledge within international industrial firms.

Place, publisher, year, edition, pages
Manoa, Hawaii, USA: University of Hawai'i at Manoa, 2017
Keywords
Knowledge use, Market information systems, Market orientation
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-59763 (URN)9780998133102 (ISBN)
Conference
50th Hawaii International Conference on System Sciences, Manoa, Hawaii, USA, January 4-7, 2017
Available from: 2017-01-12 Created: 2017-01-12 Last updated: 2018-05-17Bibliographically approved
Pehrsson, A. (2016). Firm’s international competitiveness: innovativeness and customer responsiveness of the foreign subsidiary. In: Kevin Ibeh (Ed.), 'International Business in a Multi-speed Global Economy', 43rd Annual Conference of the Academy of International Business AIB-UKI (UK & Ireland Chapter): . Paper presented at The UK and Ireland Chapter Meeting of Academy of International Business, London, UK, April 7-9, 2016. London: Birkbeck, University of London
Open this publication in new window or tab >>Firm’s international competitiveness: innovativeness and customer responsiveness of the foreign subsidiary
2016 (English)In: 'International Business in a Multi-speed Global Economy', 43rd Annual Conference of the Academy of International Business AIB-UKI (UK & Ireland Chapter) / [ed] Kevin Ibeh, London: Birkbeck, University of London , 2016Conference paper, Published paper (Refereed)
Abstract [en]

In order to increase a foreign subsidiary’s contribution to international competitiveness of theindustrial firm it is decisive to be aware of boundaries to the subsidiary’s differentiationstrategy that may hamper its performance. Based on a literature review, this article develops atheoretical model in which the differentiations components of innovativeness and customerresponsiveness build on dynamic capabilities. The model contributes to theory by proposing anegative contingency effect of competitive dynamics on foreign subsidiary’s positiverelationships between innovativeness/responsiveness and performance. Also, the modelproposes that an appropriate value-adding mandate assigned to the subsidiary strengthens thedirect relationships. Implications and further research are discussed.

Place, publisher, year, edition, pages
London: Birkbeck, University of London, 2016
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-59318 (URN)
Conference
The UK and Ireland Chapter Meeting of Academy of International Business, London, UK, April 7-9, 2016
Available from: 2016-12-20 Created: 2016-12-20 Last updated: 2018-05-17Bibliographically approved
Pehrsson, A. (2016). Firm’s strategic orientation, market context, and performance: literature review and opportunities for international strategy research. European Business Review, 28(4), 378-404
Open this publication in new window or tab >>Firm’s strategic orientation, market context, and performance: literature review and opportunities for international strategy research
2016 (English)In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 28, no 4, p. 378-404Article, review/survey (Refereed) Published
Abstract [en]

Purpose – The purpose of this paper is to extend the understanding of relationships betweenentrepreneurial orientation (EO) and performance, and between market orientation (MO) andperformance in different market contexts that set boundaries for performance.

Design/methodology/approach – The paper presents a review of studies containing empiricalresearch incorporating EO, MO, market context and firm performance.

Findings – Patterns regarding content of previous studies of the issue are outlined, and crucialresearch gaps are identified. These concern a lack of focus on relationships between EO/MO andperformance of foreign units.

Research limitations/implications – First, further studies on international strategy need todevelop EO/MO components that are consistent with foreign units’ value-adding roles. Second, theimpact of dynamism originating from competitors in foreign markets needs attention. Third, directimpacts of market dynamism on performance of foreign units, and moderating roles of EO/MO need tobe studied.

Practical implications – International competitiveness of the firm as a whole would benefit fromhigher performance of foreign units that may be achieved through aligning EO/MO with local marketcontexts.

Originality/value – Meta-analyses show that it is difficult to establish universal direct relationshipbetween EO/MO and performance and that the importance of market context is underestimated. Thepaper provides opportunities for further studies that may clarify underlying contingency mechanisms.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2016
Keywords
Performance, Entrepreneurial orientation, Market orientation, International strategy, Market context
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-59315 (URN)10.1108/EBR-11-2015-0142 (DOI)000379771300001 ()2-s2.0-84976535061 (Scopus ID)
Available from: 2016-12-20 Created: 2016-12-20 Last updated: 2018-05-17Bibliographically approved
Pehrsson, A. (2016). Foreign subsidiary’s differentiation: innovativeness, customer responsiveness, and contingencies. In: Paper presented at the Strategic Management Society Special Conference, Rome, Italy, June 5-7, 2016: . Paper presented at The Strategic Management Society Special Conference, Rome, Italy, June 5-7, 2016. Strategic Management Society
Open this publication in new window or tab >>Foreign subsidiary’s differentiation: innovativeness, customer responsiveness, and contingencies
2016 (English)In: Paper presented at the Strategic Management Society Special Conference, Rome, Italy, June 5-7, 2016, Strategic Management Society , 2016Conference paper, Published paper (Refereed)
Abstract [en]

This article draws on the dynamic capability view (Eisenhardt and Martin, 2000;Teece, 2014) and the contingency perspective of strategy (Boyd et al., 2012). The purpose isto extend the understanding of mechanisms underlying relationships between a differentiationstrategy of an industrial firm’s foreign subsidiary and its performance. First, I argue that thestrategy of the foreign subsidiary needs to rely on dynamic capabilities in order to be alignedwith a dynamic local context. Second, I argue that competitive dynamics in the foreignmarket, and the value-adding mandate assigned to the subsidiary are contextual boundaries ofthe strategy. An understanding of the impact of the contingencies would render the strategymore effective and extend the subsidiary’s contribution to firm’s global competitiveness.

Place, publisher, year, edition, pages
Strategic Management Society, 2016
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-59319 (URN)
Conference
The Strategic Management Society Special Conference, Rome, Italy, June 5-7, 2016
Available from: 2016-12-20 Created: 2016-12-20 Last updated: 2018-05-17Bibliographically approved
Pehrsson, A. (2016). Global competitiveness through foreign subsidiaries’ differentiation: the moderating roles of competitive dynamics and mandate. In: Paper presented at the 42nd Annual Conference of the European International Business Academy, Vienna, Austria, December 2-4, 2016: . Paper presented at The 42nd Annual Conference of the European International Business Academy, Vienna, Austria, December 2-4, 2016. EIBA - European International Business Academy
Open this publication in new window or tab >>Global competitiveness through foreign subsidiaries’ differentiation: the moderating roles of competitive dynamics and mandate
2016 (English)In: Paper presented at the 42nd Annual Conference of the European International Business Academy, Vienna, Austria, December 2-4, 2016, EIBA - European International Business Academy , 2016Conference paper, Published paper (Refereed)
Abstract [en]

In order to increase a foreign subsidiary’s contribution to the global competitiveness of an industrial firm, an awareness of the boundaries to the subsidiary’s strategy of differentiation that may hamper the subsidiary’s performance is essential. Drawing on the contingency perspective of strategy, this article extends current understanding of relationships between the differentiation strategy of the industrial firm’s foreign subsidiary and its performance. A conceptual model is developed in which the differentiation strategies of innovativeness and customer responsiveness build on dynamic capabilities. Contingency factors consist of type of local competitive dynamics and the value-adding mandate assigned to the subsidiary. The model is illustrated by subsidiaries of four industrial firms operating on the US market. Five propositions are developed regarding direct effects of the strategies on performance, and contingency effects of combinations of rivalry and relational competitive dynamics and upstream and downstream activities of the subsidiary.

Place, publisher, year, edition, pages
EIBA - European International Business Academy, 2016
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-59320 (URN)
Conference
The 42nd Annual Conference of the European International Business Academy, Vienna, Austria, December 2-4, 2016
Available from: 2016-12-20 Created: 2016-12-20 Last updated: 2018-05-17Bibliographically approved
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Identifiers
ORCID iD: ORCID iD iconorcid.org/0000-0003-0455-0643

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