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.