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An integrated perspective on global strategy implementation: a study of foreign value-adding
Linnaeus University, School of Business and Economics, Department of Marketing. (Marknadsföring)
2013 (English)Conference paper, Published paper (Refereed)
Abstract [en]

This article contributes to global strategy literature by examining the impact of industrial firms’ diversification on value-adding modes of wholly owned foreign subsidiaries. Thus, the study extends theory on global strategy implementation by developing and testing a conceptual model that integrates strategy theory and internationalization theory. The study contrasts triggers of basic modes consisting of promotion, sales, and after-sales services, and advanced modes that also include product development and/or production. It was found that greater product/market relatedness between the core business unit of the parent firm and the foreign subsidiary favors a basic mode, while greater resource relatedness favors an advanced mode. However, the foreign subsidiary’s market experience moderates the relationship pertaining to product/market relatedness, and the interaction triggers an advanced mode. By using the study contributions the industrial firm’s efforts to efficiently implement corporate diversification in an international context would become more efficient as strategy coherence will increase.

Place, publisher, year, edition, pages
2013.
Keyword [en]
Value adding, Foreign direct investment, International strategy, Implementation, Relatedness, International scope, Market experience, Strategy coherence
National Category
Economics and Business
Research subject
Economy, Marketing
Identifiers
URN: urn:nbn:se:lnu:diva-29658OAI: oai:DiVA.org:lnu-29658DiVA: diva2:656706
Conference
The 73rd Annual Meeting of The Academy of Management: "Capitalism in Question", Orlando, August 9-13, 2013
Available from: 2013-10-16 Created: 2013-10-16 Last updated: 2015-04-14Bibliographically approved

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Pehrsson, Anders

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  • apa
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  • Other locale
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Output format
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  • asciidoc
  • rtf