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Marketing strategy antecedents of value adding by foreign subsidiaries
Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. (Internationell strategi)ORCID iD: 0000-0003-0455-0643
2009 (English)In: International Marketing Review, ISSN 0265-1335, E-ISSN 1758-6763, Vol. 26, no 2, p. 151-171Article in journal (Refereed) Published
Abstract [en]

Purpose – This study extends the knowledge of marketing strategy antecedents of industrial value adding in foreign markets. It attempts to answer the following two questions: How is the marketing strategy of a foreign subsidiary associated with the extent of its value-adding activity? Is there an association between the extent of value-adding activity and financial performance of the subsidiary?

Methodology/approach A model is developed and hypotheses are tested. Data were collected from 191 subsidiaries of Swedish manufacturing firms in Germany, the United Kingdom, and the United States.

Findings – Product-market breadth and market experience positively affect the extent of foreign value adding. Also, market experience has a moderating effect and strengthens the positive association between product-market breadth and the extent of value adding. A foreign subsidiary’s financial performance is positively associated with the number of value-adding activities of the subsidiary.  

Limitations/implications – The study shows that the marketing strategy of a foreign subsidiary needs to be acknowledged to understand the antecedents of foreign value-adding activity. In addition, the extent of value-adding activity contributes to the implementation of an effective international strategy.

Practical implications - An industrial firm wanting to implement an effective international marketing strategy needs to pay attention to the links between the marketing strategy of a foreign subsidiary and the extent of the subsidiary’s value-adding activity.

Originality/value – The study is unique in that it applies a subsidiary perspective and focuses on foreign subsidiary strategy associations. The study both extends the common approach, which argues that the value adding of a foreign subsidiary is determined only by the corporate marketing strategy, and explores associations with foreign subsidiary performance.

Place, publisher, year, edition, pages
Emerald Group Publishing , 2009. Vol. 26, no 2, p. 151-171
Keywords [en]
Subsidiary marketing strategy, Product-market breadth, Differentiation, Market experience, Value adding, Subsidiary performance
National Category
Business Administration
Research subject
Economy, Marketing
Identifiers
URN: urn:nbn:se:vxu:diva-6490DOI: 10.1108/02651330910950402OAI: oai:DiVA.org:vxu-6490DiVA, id: diva2:282528
Available from: 2009-12-21 Created: 2009-12-21 Last updated: 2018-05-17Bibliographically approved

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Pehrsson, Anders

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CiteExportLink to record
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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