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Competition barriers and foreign subsidiary growth: propositions on the contextual role of strategic orientation
Linnaeus University, School of Business and Economics, Department of Marketing. (Marknadsföring)
Halmstad University.
2015 (English)In: International Journal of Business Competition and Growth, ISSN 2042-3845, Vol. 4, no 1-2, 3-23 p.Article in journal (Refereed) Published
Abstract [en]

A foreign subsidiary’s strategy used to break 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-based 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
InderScience Publishers, 2015. Vol. 4, no 1-2, 3-23 p.
Keyword [en]
Competition barrier, Subsidiary growth, Strategic orientation, Entrepreneurial orientation, Market orientation
National Category
Business Administration
Research subject
Economy, Marketing
Identifiers
URN: urn:nbn:se:lnu:diva-50023DOI: 10.1504/IJBCG.2015.070661OAI: oai:DiVA.org:lnu-50023DiVA: diva2:908102
Available from: 2016-03-01 Created: 2016-03-01 Last updated: 2016-03-01Bibliographically approved

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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