Search results

The purpose of this paper is to create a new research direction within the domain of firms’ strategic orientations.

Based on data from Swedish multinational corporations (MNCs), this paper identifies types, i.e. configurations, of strategic orientations involving the components of entrepreneurial orientation and market orientation, and examines relationships with performance in foreign markets. Cluster analysis identifies types, and linear regression analysis examines relationships with performance in foreign markets.

Four types of orientations were found: conservative; entrepreneurial; maximizing; and irresolute. Furthermore, it was found that the relationship with performance in foreign markets is most positive for the maximizing followed by the conservative and irresolute.

First, it is established that entrepreneurial orientation and market orientation do not operate in isolation but are mutually supportive. Second, by establishing that type of orientations makes a difference for performance, this paper goes beyond the predominant view saying that just degrees matter. Third, the findings contribute to resource-advantage theory by establishing that competitive advantage results from resources being complementary in nature.

Instead of solely relying only on entrepreneurial orientation, or market orientation, corporations are advised to carefully evaluate their configuration of orientations. The evaluation is decisive because it cites implications for performance.

The study contributes to the literature on strategic orientation in a unique way as it captures performance implications stemming from types of strategic orientations.

The purpose of this study is to compare and validate firms’ internal and external stakeholder considerations in sustainable business practices across business settings. It aims to assess the validity and reliability of a stakeholder framework appearing in previous studies.

The study uses a questionnaire survey and a cross-industry sample consisting of the largest firms in corporate Sweden. Multivariate analysis tests the stakeholder framework. Each of the 294 key informants was initially identified and contacted by telephone, generating a response rate of 36.5 per cent.

The tested stakeholder framework appears valid and reliable across countries to assess the internal stakeholders of focal firms, as well as their up- and downstream, market and societal stakeholders. This study provides additional empirical support to categorize firms’ stakeholder considerations in sustainable business practices.

This study validates previous findings in terms of Swedish firms’ considerations of internal and external stakeholders in sustainable business practices in relation to one similar country (Norway) and one different country (Spain). The study also shows how the three countries perceive the focal company and societal stakeholders differently.

The tested framework sheds light on focal firms’ stakeholder considerations in sustainable business practices and elucidates the extent to which firms’ account for their internal and external stakeholders in sustainable business practices.

This study contributes to the development of valid and reliable stakeholder theory across contexts and through time. In particular, it contributes to the development of a valid and reliable framework to categorize firms’ stakeholder considerations in sustainable business practices.

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.

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.

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.

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.

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.

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.

The purpose of this paper is to extend the understanding of innovation research and its contextual boundaries.

The paper opts for a systematic review of literature on innovation. Based on research in the agricultural and forest industries, it analyzes differences between research conducted in a competitive context of strong rivalry and research in a context characterized by strong buyer power. In particular, the review compares types of innovation under investigation and the level at which the innovation occurs.

It was found that competitive context significantly separates the type of innovation under investigation and innovation at different levels. Thus, the findings provide insights on the importance of competitive context to innovation research.

The findings have implications for the understanding of the sources and directions of innovation, and the formation of innovation at the firm and industry levels. The review also provides a relevant foundation for further research.

The review provides a ground for managerial decision-making regarding innovation. A manager wishing to innovate is advised to evaluate the competitive context. The evaluation is crucial, as the context facilitates different types and levels of innovation.

The review is unique in its emphasis that reviewing studies of innovation requires the consideration of competitive context.

Both Volvo and SAAB are now Chinese owned car companies. This means that a substantial amount of Swedish innovation takes place in China. In order to understand this phenomenon better and what it means to innovation strategy we look at how industrial clusters in the automobile industry in different phases of development differ. The Diamond Model is used to explain and measure the competitive situation in three cluster regions in China. The new automobile manufacturing clusters of Chongqing and Chengdu (2C) is compared with two well-developed clusters in Shanghai and Jiangsu, and Beijing and Hebei. Although Shanghai is the most attractive automobile cluster, automobile manufacturing firms choose to locate their production in other regions. The move is also related to the level of innovation in different regions.

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.