Strategy competence: a successful approach to international market entry

Abstract

This article presents a study of the link between strategy competence and performance in the context of international market entry. The concept of strategy competence encompasses international market entry and business relatedness. It is assumed that efforts of a firm to establish a business in a market where the firm encounters limited entry barriers, and where the local business belongs to the corporate core, lead to high performance in the local business. The empirical findings are based on a study of 173 Swedish ventures in Germany and indicate that limited customer access problems lead to high performance. At the same time, high relatedness between the core business and the local business, in terms of similar requirements for management skills and similar brand recognition, leads to high performance of the local business. In light of the findings, management would be well advised to leverage key management skills such as brand management from the core to the local business and to continuously evaluate ways to achieve customer access.

Citation

Pehrsson, A. (2004), "Strategy competence: a successful approach to international market entry", Management Decision, Vol. 42 No. 6, pp. 758-768. https://doi.org/10.1108/00251740410542320