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Foreign unit's differentiation strategy and performance: the roles of competition, strategy control, and market experience
Linnaeus University, School of Business and Economics, Department of Marketing. (Marknadsföring)ORCID iD: 0000-0003-0455-0643
2017 (English)Conference 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
2017.
Keyword [en]
International strategy, competition, market experience
National Category
Business Administration
Research subject
Economy; Economy, Marketing
Identifiers
URN: urn:nbn:se:lnu:diva-69535OAI: oai:DiVA.org:lnu-69535DiVA: diva2:1170132
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: 2018-01-16

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Pehrsson, Anders

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CiteExportLink to record
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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