Nonmarket strategies predictors for foreign firms

Kranenburg, Hans van; Voinea, Cosmina Lelia

doi:10.1016/j.scaman.2017.03.001

Cited by 8 publications

(4 citation statements)

References 75 publications

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“…This study did not include the interaction between market and nonmarket environment. The nonmarket strategy does not stand alone, but it should contribute to the success of the market strategy of the firms and ultimately the performance and sustainable competitive advantage of firms (Baysinger 1984 ; Hillman and Hitt 1999 ; Hillman et al 2004 ; van Kranenburg and Voinea 2017 ; Mellahi et al 2016 ; Sun et al 2012 ). Studies in the international business context also suggest that the socially responsible behavior of MNEs can support nonmarket strategies and tactics, in particular the corporate political activities of these firms, to strengthen their legitimacy and facilitate the nonmarket tactics and strategies to deal with institutional pressures (e.g., Jamali and Karam 2016 ; Joutsenvirta and Vaara 2015 ; Marquis and Qian 2014 ).…”

Section: Discussionmentioning

confidence: 99%

Feeling the Squeeze: Nonmarket Institutional Pressures and Firm Nonmarket Strategies

Voinea

Kranenburg

2018

Manag Int Rev

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This study investigates the drivers of pressures from various institutions in the nonmarket environment and the responses of MNEs to these pressures in a host country. By taking a broad institutional perspective, this study pairs and integrates the economic perspective of new institutionalism and the sociological perspective of neo institutionalism with the corporate political strategy perspective. This research provides a systematic review of the drivers underlying pressures from various types of nonmarket institutions that explain the preference of firms to use a transactional or relational strategy to deal with these pressures. The evidence is based on research involving MNEs in the Netherlands. The nonmarket institutions that exert the greatest pressures at the national level pushing MNEs to use transactional more than relational strategies and tactics are regulatory and standards agencies. The pressures of political institutions, interest groups, and the media, in contrast, trigger MNEs to employ relational rather than transactional strategies and tactics.

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Section: Discussionmentioning

confidence: 99%

Feeling the Squeeze: Nonmarket Institutional Pressures and Firm Nonmarket Strategies

Voinea

Kranenburg

2018

Manag Int Rev

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“…Separate bodies of extant literature support our findings (e.g. Al-Laham et al ., 2010; Chalençon et al ., 2017; Morosini et al ., 1998; Rabier, 2017; Song et al ., 2021; van Kranenburg and Voinea, 2017; Öberg and Holström, 2006). In addition, such pre-acquisition work could be seen as a learning process that enables an organization to adapt to ever-changing environmental circumstances.…”

Section: Discussionmentioning

confidence: 99%

Industry consolidation as a strategy: an acquisition program perspective

Lähteenmäki

Töyli

2023

JSMA

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PurposeThe purpose of this paper is to enlighten the intriguing process of industry asset consolidation. It is critical for firms to manage their business acquisitions strategically for survival in this industry life cycle process, which develops through multiple company mergers. The companies extensively acquiring industry assets have utilized acquisition programs consisting of both pre-acquisition strategizing and post-acquisition integration; however, the existing literature on acquisition programs focuses on post-acquisition integration activities. This study aims to bridge this gap.Design/methodology/approachThis study focuses on pre-acquisition strategizing of acquisition programs and proposes a model in which an acquiring company could manage its acquisitions for industry asset consolidation over the industry evolution.FindingsEmpirically, in the multi-case study of telecommunications infrastructure companies, the authors collect an extensive set of archival records accumulated over the whole industry life-cycle, spanning more than 30 years, and they apply a qualitative data analysis to reveal strategic actions within the companies.Research limitations/implicationsThe discoveries elaborate on activities comprising the acquisition process model: social legitimacy, strategic alignment, resource fulfillment, consolidation pursuit and merging.Practical implicationsThe counterintuitive findings are that the companies strived to ensure legitimacy early in the telecommunication infrastructure markets before they reached strategic alignment with their owners.Originality/valueThe results extend the understanding of industry asset consolidation as an organization-level phenomenon and show how contextual factors connected to industry life-cycle phases, such as regulatory regimes and financial cycles and industry evolution, influence the attributions of an acquisition program.

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“…Similarly, anti-globalization sentiments and the global environmental uncertainty give credence to strategy integration as firms now deploy resources to influence policies in the favor of organizations. Empirical findings have established a significant positive relationship between MS and firm performance while NMS and firm performance linkage are currently growing (see Köseoglu et al 2013 ; Parnell 2018 ; Parnell and Brady 2019 ; van Kranenburg and Voinea 2017 ; Zhang et al 2020 ); however, literature on MS-NMS (strategy integration) configuration to enhance firm internationalization performance remains scanty. Hence, this research provides insight and expands knowledge on the importance of strategy integration (MS-NMS), especially in uncertain/volatile international market contexts.…”

Section: Introductionmentioning

confidence: 99%

“…Organizations are incorporating NMS emphasis (understand stakeholders and leverage policies) into their strategic business framework to complement market strategy for successful internationalization performance (Yin et al 2016 ; Parnell 2018 ). NMS research and particularly corporate political activities (CPAs) have gained significant momentum in literature as organizations are integrating CPA practices into their strategic business framework, and this has led to the linkage of NMS with firm performance (Dorobantu et al 2017 ; Parnell and Brady 2019 ; van Kranenburg and Voinea 2017 ). Similarly, organization emphasis on NMS is factored toward understanding the political, legal, social, environmental, regulatory-institutions, interest-groups, and media-agency embedded in international context each of which may assert policies and influence the success and sustained competitive position of firms especially in an uncertain/volatile international market contexts (Köseoglu et al 2020 ).…”

Section: Introductionmentioning

confidence: 99%

Strategy integration, sustainable drivers of firm internationalization performance—Moderated by environmental uncertainty and firm capabilities

2023

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The global environmental uncertainty and the need for an organization to maximize profit and satisfy the interest of wider nonmarket groups/stakeholders in the host market propel and reinforce the need for strategic integration to achieve sustainable internationalization performance. The interest of this article is to examine the relative impact of market, nonmarket strategy, and strategy integration on the performance of medium and large organizations in Portugal. Furthermore, environmental uncertainty and firm capabilities were used as moderation to evaluate the performance implication of these strategy configurations on firm market advantage in the host country. Given the need to examine the relationship between the latent and measured variables in this study, structural equation models were used to test the stated hypotheses, while confirmatory factor analyses were used to assess the fitness of our model. Our findings revealed that strategy integration provides a more sustainable competitive performance than either market or nonmarket strategy when used separately, especially in highly regulated and standardized business contexts such as Portugal. Furthermore, our findings show that organization needs to design market-oriented strategies and select the types of nonmarket practices (lobbying, campaign contributions, etc.) that best fit and align with their overall corporate objectives without neglecting the host market environmental culture. Research on market and nonmarket integrations have long been overdue given its extensive proposition to firm sustainable performance in a foreign country. Our research shed light on the importance of strategy integration to combat the ever-changing dynamism of the business environment and the negative sentiment surrounding globalization and how a firm can successfully compete in an uncertain, highly regulated, and standardized market context.

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Nonmarket strategies predictors for foreign firms

Cited by 8 publications

References 75 publications

Feeling the Squeeze: Nonmarket Institutional Pressures and Firm Nonmarket Strategies

Feeling the Squeeze: Nonmarket Institutional Pressures and Firm Nonmarket Strategies

Industry consolidation as a strategy: an acquisition program perspective

Strategy integration, sustainable drivers of firm internationalization performance—Moderated by environmental uncertainty and firm capabilities

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