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Do types of strategic orientations make a difference? A study of MNCs' performance in foreign markets

Journal article
Authors Tobias Pehrsson
Published in European Business Review
Volume 32
Issue 1
Pages 26-45
ISSN 0955-534X
Publication year 2020
Published at Centre for International Business Studies
Pages 26-45
Language en
Links dx.doi.org/10.1108/ebr-03-2018-0071
Keywords Configurations, Performance, Market orientation, Entrepreneurial, orientation, Resource-advantage theory, Strategic orientations, entrepreneurial orientation, business performance, export performance, oriented behaviors, firm performance, general-theory, innovation, capabilities, management, success, Business & Economics
Subject categories Business Administration

Abstract

Purpose The purpose of this paper is to create a new research direction within the domain of firms' strategic orientations. Design/methodology/approach 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. Findings 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. Practical implications 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. Originality/value The study contributes to the literature on strategic orientation in a unique way as it captures performance implications stemming from types of strategic orientations.

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