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The purpose of this paper is to extend the understanding of relationships between entrepreneurial orientation (EO) and performance, and between market orientation (MO) and performance in different market contexts that set boundaries for performance.

The paper presents a review of studies containing empirical research incorporating EO, MO, market context and firm performance.

Patterns regarding content of previous studies of the issue are outlined, and crucial research gaps are identified. These concern a lack of focus on relationships between EO/MO and performance of foreign units.

First, further studies on international strategy need to develop EO/MO components that are consistent with foreign units’ value-adding roles. Second, the impact of dynamism originating from competitors in foreign markets needs attention. Third, direct impacts of market dynamism on performance of foreign units, and moderating roles of EO/MO need to be studied.

International competitiveness of the firm as a whole would benefit from higher performance of foreign units that may be achieved through aligning EO/MO with local market contexts.

Meta-analyses show that it is difficult to establish universal direct relationship between EO/MO and performance and that the importance of market context is underestimated. The paper provides opportunities for further studies that may clarify underlying contingency mechanisms.

Drawing on the knowledge-based theory, the purpose of this paper is to extend the current understanding of a company’s upgrading of a foreign subsidiary’s value-adding scope and its impact on growth.

This study applies a longitudinal approach and analyses the value-adding scopes of the subsidiaries of two Swedish industrial companies in the USA, resulting in a proposed model.

Greater adaptation of the corporate competitive strategy is linked to a greater likelihood of upgrading the subsidiary’s scope to include R&D and production activities. Also, market experience of the subsidiary is positively associated with this likelihood. The greater the coherence between the scope and knowledge originating from the local adaptation of the corporate competitive strategy and the subsidiary’s market experience, the greater the growth of the subsidiary.

This study contributes to the literature on international business and strategy in several ways. Future studies may turn the propositions into hypotheses for statistical tests.

An industrial company striving for the growth of a foreign subsidiary must assess subsidiary knowledge pertaining to value-adding. To achieve high growth, the subsidiary’s value-adding scope must be aligned with knowledge stemming from the corporate competitive strategy and market experience.

This is the first study explicitly explaining the crucial upgrading of a foreign subsidiary’s value-adding scope to include R&D and production. Coherence between an upgraded scope and crucial knowledge explains the subsidiary’s growth.

Drawing on the contingency perspective of strategy, the purpose of this paper is to extend current understanding of fit between a differentiation strategy of the industrial firm’s foreign subsidiary and key contextual boundaries.

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

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

The conceptual framework and the propositions may be tested by analysing statistical data on industrial firms’ subsidiaries operating in several host countries.

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.

The conceptual framework, and the propositions, contributes to literature on the industrial firm’s global strategy because it focuses on subsidiary strategy and extends present understanding of the mechanisms that drive the effectiveness of a foreign subsidiary’s differentiation strategy.

Business relatedness is important in international diversification because it enables a firm’s transfer of resources to business units operating in foreign markets. The purpose of this paper is to develop a conceptual model based on a review of the major contributions of studies regarding the relatedness of subsidiaries, joint ventures or any other foreign unit.

The paper examines theory bases, the relatedness construct, data issues and the key achievements of previous studies. Drawing on organizational learning, transaction costs economics and industrial organization, a conceptual model and propositions are developed that intend to close important research gaps.

The model includes competitive strategy as a mediator of the effects of relatedness on foreign unit performance, type of foreign unit – that is, a wholly owned unit or joint venture – as a moderator; and competition barriers as a moderator.

In future research, the propositions need to be transformed into testable hypotheses. It is recommended to treat relatedness as a multidimensional concept.

A firm is primarily advised to evaluate how its relatedness with foreign units enables knowledge transfer. A foreign cost leadership strategy benefits from product relatedness, while a differentiation strategy calls for resource relatedness.

The proposed model is unique as it includes an actionable component that mediates the effects of relatedness on international performance, i.e. competitive strategy, and concerns both wholly owned foreign units and international joint ventures.

The study draws on the resource-based view and the contingency view of strategy. The purpose of this paper is to contribute to international strategy literature by extending the current understanding of foreign subsidiary’s competitive strategy in terms of cost leadership and product differentiation.

Hypotheses concern associations between corporate support building on product and skills relatedness and subsidiary strategies. Also, it is hypothesized that strategies are due to the type of local competitive intensity. The hypotheses were tested on wholly owned subsidiaries of Swedish industrial firms in Germany, the UK and the USA.

Product and skills relatedness between the subsidiary and the corporate core unit are positively associated with the subsidiary’s emphasis on cost leadership. Also, a positive association was found between skills relatedness and product differentiation, and extensive competitive intensity strengthens the relationship.

The study specifies what business relatedness is needed for a subsidiary’s competitive strategy; skills relatedness is more important than product relatedness; the type of local competitive intensity is important; corporate support and local strategy operate simultaneously.

Management is advised to implement a foreign subsidiary’s competitive strategy by recognizing the mechanisms identified in this study.

In a unique way, the study captures the role of corporate support of a foreign subsidiary’s competitive strategy relying on business relatedness and the importance of aligning the strategy with competitive intensity.

Establishment of wholly owned subsidiaries in a foreign market is central to international marketing because sole ownership and high commitment facilitate firm's marketing in the local market. Drawing on knowledge-based theory, this study extends the current understanding of firm's sequential establishments of wholly owned subsidiaries in a host country.

Swedish firms' establishments of wholly owned subsidiaries in Germany, the United Kingdom and the United States were analyzed using a longitudinal approach.

A firm's broad international experience is associated with an acquisition in any phase, while mode experience and value-adding experience are associated with postinitial acquisitions. There is no association between mode experience and greenfield investments.

Knowledge-based theory explains a firm's choice of establishment mode when establishing in the same host country. Effects of marketing experiences are due to the establishment mode and different experiences explain choices for initial and postinitial establishments.

In choosing between a wholly owned subsidiary in terms of an acquisition or a greenfield investment, for a foreign establishment the firm is advised to consider the impact of marketing experiences and establishment phase.

Research is needed on how experiences affect choices between foreign establishment modes where the firm is the sole owner. This study is the first to focus on the choice between wholly owned subsidiaries in terms of acquisitions and greenfield investments, and the impact of experience and phase of establishment in a particular host country.

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

The study applies the knowledge-based view and explores a multinational firm’s sequential post-entry expansion in a foreign market. Event histories of Swedish industrial firms’ establishments of wholly owned subsidiaries in Germany, the UK and the USA were explored using Cox regression.

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

The study contributes to international expansion theory and integrates sources of knowledge originating from strategy theory and internationalization theory. The study shows that the dual approach is needed to understand international expansion.

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

The study is unique, as it addresses the simultaneous impact of broad and deep market experiences. Also, the inclusion of central context specifications makes the study novel.

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.