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  • 1.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    An integrated perspective on global strategy implementation: a study of foreign value-adding2013Conference 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.

  • 2.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    Application of the PSE model for market entry: Ericsson enters the US market2008In: Business Strategy Series, ISSN 1751-5637, Vol. 9, no 4, p. 168-175Article in journal (Refereed)
    Abstract [en]

    The PSE model is presented and illustrated by Ericsson’s entry into the mobile systems market in the USA. Advices on application of the model are presented. The case shows key lessons in entering an international market.

  • 3.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Barriers to entry and market strategy: a literature review and a proposed model2009In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 21, no 1, p. 64-77Article in journal (Refereed)
    Abstract [en]

    Purpose – To review previous research and to propose a model for the impact of barriers to entry on the market strategy of an entrant firm, where product/market scope and product differentiation are central strategy components. Questions: What is the impact of barriers on market strategies of entrants? Are early and late entrants affected in different ways?

    Design/methodology/approachA model and propositions are developed based on a review of previous research. The model applies the contingency perspective and company cases exemplify the model.

    Findings – It is proposed that a firm that enters a market late and faces extensive barriers would choose a broader product/market scope and differentiate its products to a larger extent than an early entrant. It is also proposed that incumbents’ market strategies indirectly affect the market strategy of an entrant firm as incumbents’ market strategies interact with barriers, and the effects are due to entry timing.

    Implications – The study contributes theoretically as it extends current knowledge of the impact of barriers to entry on strategy. Management of entrant firms are advised to strive for a fit between barriers and market strategy and consider the propositions.

    Originality/value – The model and the propositions concern barrier effects on two key components of the market strategy of an entrant firm: product/market scope and product differentiation. Another important value is that the model accounts for interactions between incumbent strategies and barriers to entry, and effects on the market strategy of an entrant firm.

  • 4.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Business relatedness and performance: a study of managerial perceptions2006In: Strategic Management Journal, Vol. 27, p. 265-282Article in journal (Refereed)
    Abstract [en]

    Understanding of business relatedness and performance effects is the foundation of any diversification decision, but we have limited knowledge of how managers consider relatedness. This study identified relatedness classes and performance effects using perceptual survey data from top industrial executives. Four classes with significant variable differences were found: high-, technology-, customer-, and low relatedness. Technology-relatedness had a strong positive performance effect and high relatedness had a negative effect. The findings confirm that perceptions are multidimensional, but may include 5 key factors rather than the previously identified attribute categories of product-markets, resources, and value chains. Contributions to diversification literature are discussed.

  • 5.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Business Relatedness in International Settings: Performance Effects in Two Customer Contexts2007In: Proceedings of The Annual Meeting of The Academy of Management, Philadelphia, USA, 3-8 August, 2007., Academy of Management, USA , 2007Conference paper (Refereed)
    Abstract [en]

    Relatedness between foreign business units and the core business unit of the parent firm is an underlying issue in the process of integration and local responsiveness going on in any international industrial firm. In this process, the character of customer needs is an important indicator of the demand for integration/local responsiveness. This study contributes to the development of the business relatedness concept by exploring the performance impact of degrees of relatedness in two international customer contexts: foreign business units delivering to original equipment manufacturers (OEMs), and units delivering to end-user firms. The study focuses on the impact of product, market, skills and branding relatedness on foreign performance. Perceptual data from 191 units of Swedish firms in Germany, the UK, and the US were used to test hypotheses. The findings show that relatedness between the foreign business unit and the core unit of the parent firm is associated with negative foreign performance. Market relatedness and skills relatedness mean low performance in both customer contexts. Branding relatedness has negative effects in the OEM context, while product relatedness has negative effects in the end-user firm context. The findings implicate that we need to pay attention to the significance of low relatedness and the customer context in international settings in developing the relatedness concept.

  • 6.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Business relatedness measurements: state-of-the-art and a proposal2006In: European Business Review, ISSN 0955-534x, Vol. 18, no 5, p. 350-363Article in journal (Refereed)
    Abstract [en]

    The purpose of this article is to extend our understanding of business relatedness, a concept that is central to diversification issues. These questions are put forward: What characterizes existing types of measurements of business relatedness? What are the weaknesses of these types? What would be the features of a model for measurement of business relatedness?

    As relatedness concerns specific business attributes, common attributes used in measurements are presented. A review of previous studies on types of measurements of business relatedness (codes or indices, researcher assessments and managerial perceptions) is followed by a discussion on correlations between perceptual and objective measurements.

    The review shows that application of SIC codes/ and researcher assessments suffer from weak content validity of the measurements, and underestimation of the multidimensionality of the construct. Use of managerial perceptions needs to address the uncertainty inherent in managerial self-assessments; previous research has found a major divergence between perceptual and objective measurements.

    A model is proposed for the measurement of business relatedness using perceptual data. It is stressed that the context of the comparisons (i.e., reason for comparison and units to be compared) has a major influence on the outcomes. Business attributes to be subjectively compared by managers are those that have been singled out as important for financial performance.

  • 7.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Business scope and competitive differentiation: a study of strategy consistency2006In: Strategic Change: Business scope and competitive differentiation, Vol. 15, no 7-8, p. 319-330Article in journal (Refereed)
    Abstract [en]

    Obstacles to strategy implementation and change are often due to limited consistency between the choices that a firm has to make regarding business scope and differentiation.

    The purpose of this paper is to identify relationships between business scope and competitive differentiation in industrial firms. It reports on managerial perceptions within a sample of business units of Swedish manufacturing firms in Germany, the United Kingdom and the United States.

    The study found that standardised products offered to just a few market segments are associated with an emphasis on product differentiation but that this strategy causes negative performance effects. In contrast, penetration of many segments is associated with customer flexibility attributes, yielding positive results.

    The study contributes to our understanding of strategy consistency by establishing associations between business scope and competitive differentiation. Management advice is presented.

  • 8.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Business strategy of foreign subsidiaries: Performance effects and customer access moderations2011In: 31st Annual International Conference of The Strategic Management Society, Strategic Management Society , 2011Conference paper (Refereed)
    Abstract [en]

    The market context of the foreign subsidiary is essential in determining an appropriate headquarter-subsidiary relationship in international strategy making. The study aims to extend the understanding of linkages between business strategy and performance of foreign subsidiaries by focusing on customer access moderations. Hypotheses were tested on 263 subsidiaries in Europe and the USA. The subsidiaries belong to Swedish manufacturing firms. The study found that the customer scope of the subsidiary positively triggers its performance if it encounters many obstacles to accessing customers. The study also found that a subsidiary emphasis on differentiation of products from those of competitors negatively triggers performance regardless of the number of obstacles, while customer responsiveness differentiation has positive effects where there are few obstacles. Contributions to literature are discussed.

  • 9.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Business strategy of foreign subsidiaries: Performance effects and customer access moderations2012In: Proceeding of the 54st Annual Conference of the Academy of International Business, Academy of international business , 2012Conference paper (Refereed)
  • 10.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Business-relatedness and strategy moderations: Impacts on foreign subsidiary performance2010In: Journal of Strategy and Management., ISSN 1755-425X, E-ISSN 1755-4268, Vol. 3, no 2, p. 110-133Article in journal (Refereed)
    Abstract [en]

    The purpose of this paper is to improve the existing knowledge of international strategy antecedents of foreign subsidiary performance. Hypotheses are developed regarding the impact of perceived relatedness between the foreign subsidiary and the parent firm’s core business unit, and the moderating effect of the subsidiary’s business strategy. In order to test the hypotheses, the study uses survey data from Europe (Germany and the UK), and the USA, and the subsidiaries belong to Swedishmanufacturing firms. Perceived relatedness regarding intangible resources affects foreign subsidiary performance positively. Competitive differentiation and market knowledge of a foreign subsidiary reinforce the performance impact of the perceived relatedness. A foreign subsidiary’s relatedness to the core business unit of its parent firm determines the subsidiary’s ability to assimilate the parent firm’s core competencies. The relatedness represents a synergy potential that is realized by the subsidiary’s core competence exploitation and economies of learning.

    The paper extends current knowledge of international strategy antecedents of foreign subsidiary performance as it applies the perceptual approach to relatedness and acknowledges the impact of foreign subsidiary strategy.

     

     

     

  • 11.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Competition antecedents of a firm’s business focus and the moderation effect of market knowledge2010In: Proceedings of the 30th Annual International Conference of The Strategic Management Society, Rome, Italy, 12-15 September, 2010. , Strategic Management Society , 2010Conference paper (Refereed)
    Abstract [en]

    In formulating a focus strategy, the firm needs to achieve a fit between the product/market scope and competition. This paper explores competition antecedents of the firm’s degree of focus, and the moderating effect of market knowledge. The paper emphasizes impacts of the main competitor’s scope and strategic behavior, and competition-based customer access obstacles. To test hypotheses, the study uses data on 430 Swedish firms and contrasts firms with limited and extensive market knowledge. It was found that the competitor’s scope and strategic behavior positively triggers the firm’s focus. The main competitor’s market focus has a greater impact if the firm possesses extensive market knowledge, while the competitor’s strategic behavior affects the firm’s scope only if the firm has extensive experience. The paper discusses theoretical contributions.

  • 12.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Competition antecedents of strategy differentiation: A study of managerial cognition2010In: Proceedings of the Special Conference of the Strategic Management Society, Levi Summit, Finland, 17-20 March, 2010., Strategic Management Society , 2010Conference paper (Refereed)
    Abstract [en]

    This study relies on managerial cognition literature and extends our understanding of firm strategy antecedents. The model suggests that the firm’s perceived competition and market experience affect its differentiation. The model contrasts two competition contingencies stemming from industrial organization theory and competitive dynamics theory (barriers to competition and competitors’ differentiation). Hypotheses were tested on 168 Swedish firms competing in the Swedish and Polish markets. First, it was found that perceived competition may consist of three reliable factors: government requirements, dominant competitors, and the main competitor’s differentiation. Second, the barrier of dominant competitors and the main competitor’s differentiation affect the firm’s differentiation positively, while the firm’s market experience has a reinforcing effect. The main effect of market experience is negative. Contributions to literature are discussed.

  • 13.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Competition barriers and foreign subsidiary performance: the moderating role of entrepreneurial orientation2014Conference paper (Refereed)
    Abstract [en]

    This paper captures subsidiary entrepreneurship. In order to build competitive advantage the global firm needs to recoqnize great diversity, including foreign subsidiary's knowledge of breaking through competition barriers. However, the relationship between subsidiary's knowledge of barriers and subsidiary performance may not be linear, but stronger in certain contexts specified by entrepreneurial orientation. Drawing on the knowledge-based view the purpose is to contribute to literature on subsidiary entrepreneurship by developing propositions regarding relationships between foreign subsidiary’s knowledge of exogenous competition barriers and subsidiary performance. The paper focuses on barriers created by global competitors or a diversity of local competitors: need for scales and barriers to access customers. The knowledge may be transferred to the subsidiary, or acquired by the subsidary itself.

  • 14.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Competition barriers and strategy moderations: Impact on foreign subsidiary performance2012In: Global Strategy Journal, ISSN 2042-5791, E-ISSN 2042-5805, Vol. 2, no 2, p. 137-152Article in journal (Refereed)
    Abstract [en]

    The global firm needs to recognize the crucial role of foreign subsidiary strategy in building global competitive advantage and emphasize corporate control of important strategy elements. In particular, there is a need to examine the role of foreign subsidiary strategy in the firm’s efforts to break through local barriers to competition that obstructs the search for global competitive advantage. This study seeks answers to two questions: how does the business relatedness between a foreign subsidiary and the parent firm moderate the performance impact of local competition barriers? How does the business strategy of a foreign subsidiary moderate the performance impact of local competition barriers? To test contingency hypotheses, the study used data from 191 subsidiaries in Germany, the United Kingdom, and the USA. The subsidiaries belong to Swedish manufacturing firms. It was found that greater business relatedness and business scope of the subsidiary weaken the negative impact of competition barriers on subsidiary performance, while product differentiation and customer responsiveness differentiation have no moderating effects. The study contributes to theory on control of foreign subsidiaries by extending the knowledge of strategy drivers of foreign subsidiary performance and the knowledge facilitates the formulation of effective global strategies.  

  • 15.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Consistency across international marketing strategy, international marketing experience, and value-adding roles of foreign subsidiaries2013In: Journal of International Marketing Strategy, ISSN 2152-5307, Vol. 1, no 1, p. 15-25Article in journal (Refereed)
    Abstract [en]

    An industrial firm’s implementation of international marketing strategy can be hampered where there is limited consistency across the strategy, the firm’s international marketing experience, and the value-adding role of the foreign subsidiary. This paper develops a framework consisting of three dimensions: international marketing strategy in terms of character of main competitive advantages, international marketing experience, and value-adding role of the foreign subsidiary. Propositions are put forward regarding consistent relationships between the dimensions. The propositions are generated based on case studies of Swedish firms and their subsidiaries in the US market. Contributes to theory are discussed.

  • 16.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Consistency of international marketing strategy2012In: Proceedings of The 32nd Annual International Conference of The Strategic Management Society, Wiley-Blackwell, 2012Conference paper (Refereed)
  • 17.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    Customer access and competitive certainty: Performance effects in Swedish foreign subsidiaries2008In: Strategic Change, ISSN 1086-1718, E-ISSN 1099-1697, Vol. 17, no 5-6, p. 179-192Article in journal (Refereed)
    Abstract [en]

    This article extends our understanding of performance effects of expansion barriers in different strategy contexts relevant to industrial firms. Effects of perceived obstacles to customer access are studied, and competitive certainty is acknowledged since barriers to a large extent originate from business strategies of competitors. The study explores patterns using data from subsidiaries of Swedish manufacturing firms in Germany, the United Kingdom, and the United States. For units with a narrow product/market scope, the direct performance effects of customer access obstacles and competitive certainty are negative. On the other hand, in the narrow context competitive certainty moderates the relationship between customer access obstacles and performance, and this implicates a positive effect. There are no significant effects in the context of a broad product/market scope. Performance effects of barriers are, thus, more complicated than previously thought, and we need to pay attention to perceived competitive certainty and the strategy context.

  • 18.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Customer access, competitive certainty and interactions: performance effects in two strategy contexts2007In: The 3rd Annual Copenhagen Conference on Strategic Management, 2007Conference paper (Other academic)
    Abstract [en]

    This paper focuses on performance effects of expansion barriers in different strategy contexts of industrial firms. Effects of obstacles to customer access, and competitor certainty are studied. The study explores patterns using perceptual data from subsidiaries of Swedish manufacturing firms in Germany, the UK, and the USA. For units with a narrow product/market scope, the direct performance effects of customer access obstacles and competitive certainty are negative. On the contrary, in this context competitive certainty moderates the relationship between customer access obstacles and performance, and this implicates a positive effect. There are no significant effects in the context of broad product/market scopes. Performance effects of barriers are more complicated than previously thought, and we need to consider perceived competitive certainty and the strategy context.

  • 19.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Entrepreneurial orientation and subsidiary’s knowledge-based growth on foreign markets2014In: Proceedings of The 56th Annual Meeting of the Academy of International Business: "Local Contexts in Global Business": Vancouver, Canada, June 23-26 / [ed] Klaus Meyer and Tunga Kiyak, AIB - Academy of international business , 2014, p. 265-266Conference paper (Refereed)
    Abstract [en]

    This paper draws on the knowledge-based view and contributes to literature on subsidiary entrepreneurship which is an underestimated topic despite its importance for firm performance. The paper addresses limitations of previous studies, and develops a conceptual model and propositions based on a literature review. The Page 265 THURSDAY AIB 2014 Conference Proceedings propositions highlight associations among types of barriers to competition that may obstruct post-entry growth of the foreign subsidiary, transfer and acquisition of knowledge of barriers, and the moderating role of subsidiary’s entrepreneurial orientation. The first proposition predicts that the greater the foreign subsidiary’s entrepreneurial orientation, the stronger the positive association between knowledge of scale barriers transferred to the subsidiary and the subsidiary’s relative growth. The second proposition predicts that the greater the foreign subsidiary’s entrepreneurial orientation, the stronger the positive association between knowledge of customer access barriers acquired by the subsidiary and the subsidiary’s relative growth. Theoretical and managerial contributions are discussed.

  • 20.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Entreprenörens strategiska dilemman2007In: Den lekande farbrorn, 2007, p. 63-67Chapter in book (Other (popular science, discussion, etc.))
    Abstract [sv]

    Genom att tillämpa modellen för strategiska tillstånd kan entreprenören öka medvetandet om marknadsrisker och klargöra optimala strategier för företaget. Entreprenören kan därmed hantera sina strategiska dilemman: standardisering eller kundanpassning och få eller många marknadssegment.

  • 21.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    ENTRY BARRIERS, COMPETITORS’ STRATEGIES AND INTERACTIONS: IMPACTS ON FOREIGN MARKET ENTRY2008In: Proceedings of the 50th Annual Conference of Academy of International Business, 2008Conference paper (Refereed)
    Abstract [en]

    This paper reviews previous research and proposes a contingency-based model for the impact of barriers to entry on strategy for foreign market entry, where product/market scope and product differentiation are central strategy components. The questions are: What are the impact of barriers on entry strategies? Are early and late entrants affected in different ways? First, it is proposed that exogenous and endogenous barriers to foreign entry are mutually reinforcing. Second, a firm that enters a foreign market late and faces extensive barriers would choose a broader product/market scope and differentiate its products to a larger extent than an early entrant. Finally, it is proposed that incumbents’ market strategies indirectly affect the entry strategy of an entrant firm as incumbents’ market strategies interact with barriers, and the effects are due to entry timing. The study contributes theoretically as it extends our knowledge of the strategy impact of barriers to entry. Management of entrant firms are advised to strive for a fit between barriers and foreign entry strategy and pay attention to the proposals put forward in this paper.

  • 22.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Firms' customer responsiveness and performance: the moderating roles of dyadic competition and firm's age2014In: The journal of business & industrial marketing, ISSN 0885-8624, E-ISSN 2052-1189, Vol. 29, no 1, p. 34-44Article in journal (Refereed)
    Abstract [en]

    Purpose - The literature reports mixed findings on the performance impact of market orientation and a lack of attention to the moderating roles of dyadic competition and firm's age. The purpose of this paper is to explore the relationship between customer responsiveness and performance of industrial firms and to consider the moderators. Design/methodology/approach - Drawing on competitive dynamics literature, a contingency model is developed. Hypotheses were tested on 350 Swedish industrial firms that market clean technology to business customers. Findings - First, the main competitor's cost leadership weakens the positive performance impact of the industrial firm's customer responsiveness. An interpretation would be that it is difficult for product firms to overcome competition based on low costs. Second, the industrial firm's age weakens the positive performance impact of the industrial firm's customer responsiveness. This indicates that the firm's responsiveness advantage diminishes as strategies of competing firms converge. Research limitations/implications - By adding literature on competitive dynamics the study contributes to theory. The article shows that dyadic competition and firm's age matter for the relationship between customer responsiveness and performance. Practical implications - The industrial firm may keep an efficient customer responsiveness strategy by reducing its vulnerability to low costs of the main competitor. Also, an ability of developing the content of the firm's responsiveness strategy would favor the strategy uniqueness and efficiency. Originality/value - The article presents a new model that shows the performance impact of the industrial firm's customer responsiveness, including the moderating roles of the main competitor's competitive strategy and the firm's age. By including the contingencies, the model explains mixed findings in the literature regarding relationships between customer responsiveness and performance.

  • 23.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Firms’ customer responsiveness: Relationships with competition, market growth, and performance2011In: Journal of Strategy and Management., ISSN 1755-425X, E-ISSN 1755-4268, Vol. 4, no 4, p. 347-364Article in journal (Refereed)
    Abstract [en]

    The purpose of this paper is to examine important relationships pertaining to customer responsiveness of the industrial firm. Drawing on strategy and competitive dynamics literature, a contingency model is developed. Hypotheses were tested on 432 Swedish industrial firms that market to business customers in growing or mature markets. Clean technology markets represented growing markets, while miscellaneous markets represented mature markets. The relationship between the attention paid to customer responsiveness by the industrial firm and the attention paid to volume by the main competitor is negatively reinforced if the firm operates in a growing market. The relationship between the attention paid to customer responsiveness by the firm and competition-based customer access obstacles in terms of supplier loyalty is positively reinforced if the firm operates in a growing market. The relationship between the firm’s customer responsiveness attention and its financial performance is positively reinforced if the firm operates in a growing market. The industrial firm may find an efficient customer responsiveness strategy if the firm operates in a growing market. Because customer responsiveness does not improve firms’ financial performance in mature markets, competition relationships are only important to examine in growing markets. Thus, customer responsiveness is more complicated than previously thought in the literature. The paper presents a new model that integrates relationships among industrial firms’ attention to customer responsiveness, competition, and performance. By including the market growth contingency, the model explains mixed findings in the literature regarding relationships between customer responsiveness and performance.

  • 24.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Firm’s international competitiveness: innovativeness and customer responsiveness of the foreign subsidiary2016In: '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 (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.

  • 25.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Firm’s strategic orientation, market context, and performance: literature review and opportunities for international strategy research2016In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 28, no 4, p. 378-404Article, review/survey (Refereed)
    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.

  • 26.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Foreign subsidiaries’ competitive strategy: the impact of corporate support and local competition2017In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 29, no 6, p. 606-627Article in journal (Refereed)
    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.

  • 27.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Foreign subsidiary’s differentiation: innovativeness, customer responsiveness, and contingencies2016In: Paper presented at the Strategic Management Society Special Conference, Rome, Italy, June 5-7, 2016, Strategic Management Society , 2016Conference 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.

  • 28.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Foreign value-adding of industrial firms: associations with international strategy and market experience2014In: Journal of Strategy and Management., ISSN 1755-425X, E-ISSN 1755-4268, Vol. 7, no 2, p. 155-171Article in journal (Refereed)
    Abstract [en]

    Purpose – There is a lack of research on how the industrial firm’s international strategy is associated with basic and advanced value-adding modes of the wholly owned foreign subsidiary. The purpose of this paper is to fill the gap by answering two questions: how are relatedness between the firm and the foreign subsidiary, and the firm’s international scope associated with foreign subsidiary’s value-adding mode? How does the subsidiary’s market experience moderate the relationships?

    Design/methodology/approach – The study develops a conceptual model that integrates strategy theory and internationalization theory in order to explain basic value-adding modes (promotion, sales, and after-sales services), and advanced modes that also include product development and/or production. Also, the study tests the model using statistical data from subsidiaries of Swedish firms operating in Germany, the USA, and the UK.

    Findings – It was found that greater relatedness between the core business unit of the parent firm and the foreign subsidiary favors a basic mode. However, the foreign subsidiary’s market experience weakens the relationship, and the interaction triggers an advanced mode. Also, greater international scope of the firm favors an advanced mode.

    Research limitations/implications – The model test shows that research needs to consider both international strategy and market experience in explaining value-adding modes of an industrial firm’s wholly owned subsidiary.

    Practical implications – By using the study contributions the industrial firm’s efforts to efficiently implement international strategy would become more efficient as strategy coherence will increase.

    Originality/value – This paper contributes to literature on international strategy and internationalization by showing that international strategy and market experience of foreign markets mutually impact value-adding modes of wholly owned foreign subsidiaries.

  • 29.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Global competitiveness through foreign subsidiaries’ differentiation: the moderating roles of competitive dynamics and mandate2016In: 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 (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.

  • 30.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    How does a foreign subsidiary’s differentiation strategy fit competitive dynamics and mandate?2016In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 28, no 6, p. 690-708Article in journal (Refereed)
    Abstract [en]

    Purpose – Drawing on the contingency perspective of strategy, the purpose of this paper is to extendcurrent understanding of fit between a differentiation strategy of the industrial firm’s foreignsubsidiary and key contextual boundaries.

    Design/methodology/approach – A conceptual framework is developed in which a differentiationstrategy involves the complementary approaches of innovativeness and customer responsiveness. The key boundaries consist of local competitive dynamics and the value-adding mandate assigned to thesubsidiary. Detailed features of four types of differentiation strategies are identified by analysingstrategies applied by subsidiaries of industrial firms operating on the US market.

    Findings – Four propositions are developed regarding alignment between strategy types and theboundaries. Relationships are proposed regarding a strategy type and a context specified by rivalry/relational competitive dynamics, and a broad/narrow value-adding mandate.

    Research limitations/implications – The conceptual framework and the propositions may betested by analysing statistical data on industrial firms’ subsidiaries operating in several host countries.

    Practical implications – To increase a foreign subsidiary’s contribution to the global competitiveness ofan industrial firm, an awareness of the boundaries to the subsidiary’s strategy of differentiation that mayhamper the subsidiary’s performance is essential.

    Originality/value – The conceptual framework, and the propositions, contributes to literature on theindustrial firm’s global strategy because it focuses on subsidiary strategy and extends presentunderstanding of the mechanisms that drive the effectiveness of a foreign subsidiary’s differentiation strategy.

  • 31.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    How does a foreign unit's differentiation strategy fit the competition context?2017In: 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 (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.

  • 32.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    International business establishments and local competition: a three-country study of performance effects2006In: Proceedings of The 26th Annual International Conference of The Strategic Management Society, Vienna, Austria, 29 October-1 November, 2006., 2006Conference paper (Refereed)
    Abstract [en]

    This article extends our understanding of performance effects of expansion barriers in different strategy contexts relevant to industrial firms. Effects of perceived obstacles to customer access are studied, and competitive certainty is acknowledged since barriers to a large extent originate from business strategies of competitors. The study explores patterns using data from subsidiaries of Swedish manufacturing firms in Germany, the United Kingdom, and the United States. For units with a narrow product/market scope, the direct performance effects of customer access obstacles and competitive certainty are negative. On the other hand, in the narrow context competitive certainty moderates the relationship between customer access obstacles and performance, and this implicates a positive effect. There are no significant effects in the context of a broad product/market scope. Performance effects of barriers are, thus, more complicated than previously thought, and we need to pay attention to perceived competitive certainty and the strategy context.

  • 33.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    International diversification and subsidiary performance: impacts of business relatedness and market experience2009In: Proceedings of The 51th Annual Conference of the Academy of International Business, Academy of International Business , 2009Conference paper (Refereed)
    Abstract [en]

    Purpose – The purpose of this paper is to improve the existing knowledge of international strategy antecedents of foreign subsidiary performance.

    Design/methodology/approach – Hypotheses are developed regarding the impact of perceived relatedness between the foreign subsidiary and the parent firm’s core business unit, and the moderating effect of the subsidiary’s business strategy. In order to test the hypotheses, the study uses survey data from Europe (Germany and the United Kingdom), and the USA, and the subsidiaries belong to Swedish manufacturing firms.

    Findings – Perceived relatedness regarding intangible resources affects foreign subsidiary performance positively. Competitive differentiation and market knowledge of a foreign subsidiary reinforce the performance impact of the perceived relatedness.

    Limitations/implications – A foreign subsidiary’s relatedness to the core business unit of its parent firm determines the subsidiary’s ability to assimilate the parent firm’s core competencies. The relatedness represents a synergy potential that is realized by the subsidiary’s core competence exploitation and economies of learning.

    Originality/value – The study extends current knowledge of international strategy antecedents of foreign subsidiary performance as the study applies the perceptual approach to relatedness and acknowledges the impact of foreign subsidiary strategy.

  • 34.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    International Firms’ Market Orientation and Use of Knowledge: Implications for Market Information Systems2017In: Proceedings of the 50th Hawaii International Conference on System Sciences, Manoa, Hawaii, USA: University of Hawai'i at Manoa , 2017, p. 4596-4602Conference 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.

  • 35.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    International Strategy: Methods for Competitiveness2008Book (Other academic)
    Abstract [en]

    More intensive international competition allows for greater market par-ticipation of domestic and foreign firms. Changes affect involved firms’ competitiveness, no matter how the firm assesses the competitive envi-ronment, or what international strategy the firm seeks to implement. This book identifies strategy drivers of successful foreign establishments and presents methods for competitiveness. The book provides:

    • An international strategy model, including the competitive envi-ronment, international strategy, international strategy implemen-tation, and international competitiveness.

    • Firm cases of international strategies such as development of Ericsson’s international strategy, strategy issues of suppliers to Audi and Mercedes, and strategy issues of suppliers to the US automotive market.

    • Studies of establishments of Swedish industrial firms in Ger-many, the United Kingdom, and the USA.

    • Applications of the PSE model for market entry, and the Strategic States model for competitive strategy in a market, and advices regarding application of methods for competitiveness.

  • 36.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    Knowledge of competition-based entry barriers: effects on market strategy2008In: Proceedings of The 28th Annual International Conference of The Strategic Management Society, Strategic Management Society, USA , 2008Conference paper (Refereed)
    Abstract [en]

    Although research on competition-based entry barriers has been popular, we still need to understand perceptions of barriers, effects on market strategy and accompanying knowledge processes. This paper suggests a model for knowledge of barriers and effects on entrant firm strategy. The model and its propositions rely on the contingency perspective, and company cases illustrate the model. It is proposed that exogenous and endogenous barriers are mutually reinforcing, and that an entrant firm perceiving extensive barriers would choose a broad product/market scope and differentiate its products to a large extent. Finally, it is proposed that incumbents’ strategies indirectly affect the strategy of an entrant firm and interact with barriers. Literature contributions and suggestions for empirical research are discussed.

  • 37.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Marketing strategy antecedents of value adding by foreign subsidiaries2009In: International Marketing Review, ISSN 0265-1335, E-ISSN 1758-6763, Vol. 26, no 2, p. 151-171Article in journal (Refereed)
    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.

  • 38.
    Pehrsson, Anders
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Product/customer scope: Competition antecedents, performance effects, and market context moderations2011In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 23, no 5, p. 418-433Article in journal (Refereed)
    Abstract [en]

    The purpose of this paper is to explore the competition antecedents and performance effects of firm product/customer scope, and the moderating role of market growth. The theoretical model follows the contingency perspective on strategy and draws on the strategy and competitive dynamics literature. A questionnaire was used to gather the quantitative data for testing the hypotheses using regression analyses. The questionnaires were completed by executives of 432 Swedish industrial firms serving business customers. The firms offering clean technology products operate in growing markets while the firms offering miscellaneous products operate in mature markets. Competition is an antecedent of firm product/customer scope. The more competitive the action of the main competitor, the more limited the customer scope of the firm if it operates in a mature market. The impact of the main competitor’s scope is robust across all market contexts. Furthermore, the broader the product scope of the firm, the better the financial performance if the firm operates in a growing market. The study contributes theoretically, as it extends our knowledge of crucial relationships of firm product/market scope. A firm must be aware of its main competitor’s scope and action, and adapt its scope to the level of market growth. The theoretical model and the tests go beyond those used in previous research. Another key value is the analysis of perceptual data gathered from executives. Earlier studies of competition assume equal perceptions among competing firms and do not acknowledge that market contexts are ambiguous realities.

  • 39.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Sequential expansion in a foreign market: knowledge drivers and contingencies of establishments of additional subsidiaries2016In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 28, no 3, p. 285-311Article in journal (Refereed)
    Abstract [en]

    Purpose – A multinational firm’s expansion in a foreign market is a key issue of internationalbusiness. The purpose of this study is to extend the understanding of essential drivers that will facilitatefirm’s assessment of alternative modes of sequential expansion.

    Design/methodology/approach – The study applies the knowledge-based view and explores amultinational firm’s sequential post-entry expansion in a foreign market. Event histories of Swedishindustrial firms’ establishments of wholly owned subsidiaries in Germany, the UK and the USA wereexplored using Cox regression.

    Findings – Broad market experiences stemming from corporate strategy and deep experiences fromthe preceding subsidiary increase the likelihood of a sequential investment. Effects of broad experiencesare contingent on the context specified by the geographic scope of the firm and its general subsidiaryexperience.

    Research limitations/implications – The study contributes to international expansion theory andintegrates sources of knowledge originating from strategy theory and internationalization theory. Thestudy shows that the dual approach is needed to understand international expansion.

    Practical implications – In evaluating a further subsidiary investment in a foreign market, themultinational firm is advised to assess whether it possesses enough market experiences to justify theinvestment. The experiences should be associated with corporate strategy, the previous wholly ownedsubsidiary and the context specifications identified in the study.

    Originality/value – The study is unique, as it addresses the simultaneous impact of broad and deepmarket experiences. Also, the inclusion of central context specifications makes the study novel.

  • 40.
    Pehrsson, Anders
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Sequential post-entry expansion on foreign markets: drivers of the establishment of additional wholly-owned subsidiaries2014In: Proceedings of The 56th Annual Meeting of the Academy of International Business: "Local Contexts in Global Business": Vancouver, Canada, June 23-26 / [ed] Klaus Meyer and Tunga Kiyak, AIB - Academy of international business , 2014, p. 102-102Conference paper (Refereed)
    Abstract [en]

    A firm setting up an additional wholly-owned subsidiary in a foreign country takes great risks due to the amount of capital that is involved. However, there is a lack of research on the crucial issue. Relying on resource-based theory this study explains firm’s post-entry sequential expansion. Event histories of Swedish firms in Germany, UK, and the USA were analyzed. It was found that a broader product scope increases the hazard of establishment of a subsequent subsidiary. The relationship is stronger if the first subsidiary has extensive value-adding activities. Furthermore, the activities have a positive direct impact and this is also valid if the first subsidiary was a greenfield investment. The findings indicate that exploitation of resources such as market experiences explain post-entry sequential expansion. The study contributes to literature on foreign direct investments and internationalization.

  • 41.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    Some key features of marketing strategy2006In: Marketing: Broadening the horizons, Studentlitteratur, Lund , 2006, p. 43-58Chapter in book (Other (popular science, discussion, etc.))
    Abstract [en]

    The chapter presents the foundation of marketing strategy, strategy and the strategy process, the debate on different views on sources of competitive advantage, the PSE-model for market establishment, and the illustrative case of Ericsson´s entry into

    the USA market.

  • 42.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Strategy antecedents of modes of entry into foreign markets2008In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, Vol. 61, no 2, p. 132-140Article in journal (Refereed)
    Abstract [en]

    Although a firm’s choice of mode of entry to a foreign market is central to the implementation of international strategy, we have only limited understanding of the effects of international strategy on the choice. This study explores the effects of business relatedness and corporate international experience. Data were collected on 173 ventures of Swedish manufacturing firms that were present on the German market, and multivariate techniques were applied to test hypotheses. It was found that product/market relatedness and intangible resource relatedness between the foreign business unit and the industrial firm’s core business unit favored a full control entry mode based on sole ownership. This finding was also valid for importance of foreign markets. Further, market importance moderated the two relationships regarding business relatedness. Contributions to the literature are discussed.

  • 43.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    Successful foreign establishments2005In: Creation of Industrial Competitiveness: CIC 2001-2004 / [ed] Basim Al-Najjar , Anders Pehrsson, Växjö: Växjö University Press , 2005, p. 95-112Chapter in book (Other academic)
  • 44.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
    The strategic states model: strategies for business growth2007In: Business Strategy Series, Vol. 8, no 1, p. 58-63Article in journal (Refereed)
    Abstract [en]

    This article underscores the necessity for a company to choose a business strategy that relies on a thorough understanding of the company setting. By applying the Strategic States Model it’s possible to find an optimum strategy for any company based on an identification of its strategic state. This model is illustrated by Ericsson’s response to changes in the global market of telecommunications operators.

  • 45.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    Value adding in foreign markets: A three-country study of associations of strategy and performance2008In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 20, no 1, p. 20-35Article in journal (Refereed)
    Abstract [en]

    Purpose – The purpose of this article is to extend our knowledge of industrial firms’ international strategy implementation by exploring key associations pertaining to types of value adding in foreign markets. The questions are: How are types of value adding in foreign markets associated with differentiation attributes? How are the types associated with the performance of foreign units?

    Design/methodology/approach – A hypothesized model is developed. The key terms (type of value adding, differentiation attributes, financial performance) are operationalized. A questionnaire was used to collect the quantitative data necessary to test the hypotheses using Anova analyses. The questions were answered by managers of 191 subsidiaries of Swedish manufacturing firms in Germany, the UK and the USA.

    Findings – Firms with product development in foreign markets are associated with a limited focus on product attributes in trying to receive orders compared with firms without such local value adding. Local customer services are related to a limited emphasis on product attributes as well, but such services are associated with an emphasis on customer flexibility attributes. Foreign product development and customer services are associated with high performance. Interpretations of the findings are discussed.

    Implications – The study contributes theoretically as it extends our knowledge of international strategy implementation. In the search for the type of value adding in a foreign market, the industrial firm is recommended to be aware of the general associations among the types, and the differentiation attributes and performance established in the study.

    Originality/value – The application of a local perspective goes beyond what has been done in the dominant head quarter studies in previous research. Another key value is the analysis of perceptual data collected from managers responsible for foreign subsidiaries.

  • 46.
    Pehrsson, Anders
    Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Marknadsföring.
    Value adding in international settings: strategy causes and performance effects2006In: Proceedings of The 2nd Annual Copenhagen Conference on Strategic Management, 12-13 December, 2006, Copenhagen Business School , 2006Conference paper (Refereed)
    Abstract [en]

    Internationalization and a changing global environment create a need for industrial firms to evaluate their international strategies. Appropriate geographic configuration of value adding activities is crucial as it establishes the capacity to respond locally and exploit advantages. This study identified strategy causes and performance effects of local value adding using survey data from industrial firms in Germany, the U.K. and the U.S.A. It was found that a divergence strategy on the market combined with low relatedness to the parent’s core business favor extensive local value adding, and that local product development and customer services are performance drivers. Contributions to international strategy literature are discussed.

  • 47.
    Pehrsson, Anders
    et al.
    Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
    Al-Najjar, BasimLinnaeus University, Faculty of Science and Engineering, School of Engineering.
    Creation of Industrial Competitiveness: CIC 2001-20042005Collection (editor) (Other academic)
    Abstract [en]

    The prerequisites for international industrial competitiveness are constantly changing. Technical developments, widespread internationalization, and deregulations bring about more establishments and different competitive situations. Furthermore, customer needs and demands vary. All these changes affect to a high degree individual companies, industries and the society as a whole. However, we do not know enough about what constitutes industrial competitiveness and underlying processes. Therefore this question is pertinent:  

    How is industrial competitiveness created in constantly changing international environmnets?

    Finding answers to this all-embracing question is, thus, the foundation for the research presented in this book. The first part of the book presents separate projects which focus on industrial competitiveness from an internal effectiveness perspective, while the second part consists of projects which penetrate the subject from a business perspective. The final part starts with a discussion on the overall findings, and ends with conclusions in relation to the question above and specifications of the need for further research.

    The outcome of this book contributes to theory on sources of industrial competitiveness in general. More specifically, frameworks are developed comprising concepts and models in crucial areas such as business strategy, core competence, industrial marketing, quality management, interorganizational relations and internal effectiveness. 

    Companies may benefit from the results as it provides guidance and supportin the search for competitiveness, based on studies of high performing companies in different industries. The knowledge will also help in understanding crucial processes that effect economies and the society as a whole.

     

     

  • 48.
    Pehrsson, Anders
    et al.
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Pehrsson, Tobias
    Halmstad University.
    Competition barriers and foreign subsidiary growth: propositions on the contextual role of strategic orientation2015In: International Journal of Business Competition and Growth, ISSN 2042-3845, Vol. 4, no 1-2, p. 3-23Article in journal (Refereed)
    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.

  • 49.
    Pehrsson, Anders
    et al.
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Pehrsson, Tobias
    Högskolan i Halmstad.
    Consistent resource base of a foreign subsidiary’s greenfield expansion: a conceptual framework and propositions2014In: European Business Review, ISSN 0955-534X, E-ISSN 1758-7107, Vol. 26, no 1, p. 64-78Article in journal (Refereed)
    Abstract [en]

    Purpose – The purpose is to extend the understanding of the resource base of the industrial firm’s greenfield expansion on a foreign country market once a wholly owned subsidiary has been established.

    Design/methodology/approach – A conceptual framework is developed relying on the

    resource-based theory of strategy. Resource bases in terms of value-adding activities of four

    Swedish industrial firms’ subsidiaries in the USA are analysed. Four theoretical propositions are formulated regarding consistent associations among the activities and contingencies that are relevant to expansion on a foreign country market.

    Findings – The propositions show how foreign subsidiaries’ value-adding activities are aligned with two contingencies: the corporate strategy manifested by the product/market knowledge transferred from the parent firm that enable local expansion and the subsidiary’s knowledge of competition barriers that obstruct local expansion. The value-adding activity may be basic or advanced and may repeat the parent firm’s activity.

    Research limitations/implications – US subsidiaries of four Swedish industrial firms were

    analysed. The propositions may be turned into hypotheses suitable for tests in statistical studies. A test may include firms from different home countries and subsidiaries on different host country markets.

    Practical implications – The conceptual framework and the propositions provide a ground for an industrial firm’s decision to conduct a strategy of greenfield expansion on a foreign country market once a wholly owned subsidiary has been established.

    Originality/value – The framework is unique and emphasizes that both knowledge stemming from corporate strategy and knowledge of local competition need to be acknowledged in order to understand firm’s greenfield expansion on a foreign country market.

  • 50.
    Pehrsson, Anders
    et al.
    Linnaeus University, School of Business and Economics, Department of Marketing.
    Rollins, Minna
    University of West Georgia, USA.
    Market knowledge and dynamic capabilities in creating competitive advantage in an international new venture2018In: Proceedings of the 51st Hawaii International Conference on System Sciences, Honolulu: University of Hawai'i Press, 2018, Vol. 51, p. 4301-4308Conference 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.

12 1 - 50 of 53
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