Deciding where in the world to expand when determining a subsidiary strategy: How managers in Portugal assess perceptions of distance

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

This case study paper concentrates on the managerial perceptions that determine where to establish a subsidiary and which strategies to follow in doing so. Cultural and economic distances have the biggest impacts on such strategy formation, followed by secondary administrative and geographic distance factors. Most managers preferred to adapt their marketing approach to the foreign market, to give high autonomy to acquired subsidiaries to manage their market, and to set up a subsidiary in a neighboring country. The interviewed Portuguese companies therefore predominantly opened a foreign subsidiary in Spain.

Originality/value

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Citation

(2020), "Deciding where in the world to expand when determining a subsidiary strategy: How managers in Portugal assess perceptions of distance", Strategic Direction, Vol. 36 No. 4, pp. 33-35. https://doi.org/10.1108/SD-01-2020-0002