The Effect of Market Orientation of Foreign Subsidiary on Local Market Knowledge Acquisition

2013 ◽  
Vol 24 (3) ◽  
pp. 73-105
Author(s):  
Gap-Yeon Jeong ◽  
◽  
Myung-Su Chae
Keyword(s):  
Knowledge Acquisition ◽  
Market Orientation ◽  
Foreign Subsidiary ◽  
Local Market ◽  
Market Knowledge

The Role of Market Orientation in Internationalization of SMEs

2013 ◽  
pp. 242-257 ◽  
Author(s):  
Rosmeriany Nahan-Suomela ◽  
Satu Lautamäki
Keyword(s):  
Market Orientation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Cultural Factor ◽  
Future Research ◽  
Global Business ◽  
Market Knowledge ◽  
New Type ◽  
Future Research Directions ◽  
Medium Enterprises

A rapidly changing business environment generates a growing demand for enterprises to understand their markets. Knowledge about markets is a strategic resource and enterprises are advised to invest in understanding their markets, competitors, and customers. Market orientation is widely studied as a concept describing how enterprises generate and respond to market knowledge. Market orientation is a cultural factor which we analyze in the framework of organizational culture. We examine market orientation as a cultural factor, as adopting a new type of culture inside and outside an organization can be particularly challenging for Small- and Medium-Enterprises (SMEs). SMEs have not been considered as very active participants in global business, where market knowledge is of utmost importance. For example, Keskin (2006) finds that market orientation is an antecedent of learning orientation in SMEs and market intelligence guides their learning processes. This chapter examines both theoretically and empirically how market orientation as a cultural factor is related to the internationalization processes of SMEs. This hopefully helps us to understand how SMEs can develop their businesses to a global level. We will present a qualitative study of four Finnish SMEs representing different phases of internationalization. Finally, discussion on the results and future research directions will be presented.

Clusters, technological knowledge spillovers, and performance

2015 ◽  
Vol 53 (2) ◽  
pp. 469-490 ◽  
Author(s):  
Tsai-Ju Liao
Keyword(s):  
Market Orientation ◽  
Cluster Size ◽  
Knowledge Spillovers ◽  
Technological Knowledge ◽  
Foreign Firms ◽  
Local Market ◽  
Local Ownership ◽  
Content Type ◽  
Strategic Behaviors ◽  
And Performance

Purpose – The purpose of this paper is to explore the cluster effect by decomposing the broad category of “clusters” into cluster size and technological knowledge spillovers. Further, this study questions whether all foreign firms benefit equally from participation in geographic clusters. Specifically, the paper examines the moderating roles of local ownership ties and a local market orientation with respect to the benefits of cluster size and technological knowledge spillover. Design/methodology/approach – Using the Database of Enterprises in China, this study examines a sample of 2,200 Taiwanese manufacturing firms operating in China from 2005 to 2007. Findings – The paper found that increased cluster size and technological knowledge spillovers help to enhance foreign firms’ financial performance. The analysis also shows that local ownership ties and a local market orientation have a positive moderating effect on the relationship between cluster size, technological knowledge spillovers, and performance. Originality/value – This study distinguishes between the effects of cluster size and technological knowledge spillovers, which is an important step toward demystifying the “black box” of cluster benefits. Further, due to the liability of foreignness and the lack of legitimacy that foreign firms face when operating in emerging economies, this study integrates the cluster perspective and the legitimacy perspective to discuss whether foreign firms can actively adopt strategic behaviors that will help to improve their legitimacy and enable them to better capture potential cluster benefits.

Exploiting market-oriented collective learning cycle to leverage competitive advantage at a foreign subsidiary in emerging markets

2020 ◽  
Vol 32 (1) ◽  
pp. 86-128
Author(s):  
Gamal Mohamed Shehata
Keyword(s):  
Organizational Learning ◽  
Emerging Markets ◽  
Market Orientation ◽  
Collective Learning ◽  
Learning Cycle ◽  
Foreign Subsidiary ◽  
Competitive Advantages ◽  
Content Type ◽  
Learning Practices

Purpose The purpose of this paper is to examine how a foreign subsidiary operates in emerging markets and integrates market orientation with organizational learning to achieve a competitive lead. It is an attempt to fill an evident gap in the literature of integrating organizational learning into a market-oriented competitive strategy through using a four-step collective learning cycle at General Motors Egypt (GME). Design/methodology/approach The paper adopts a qualitative case study methodology to thoroughly examine the viewpoints of 90 respondents via in-depth and unstructured interviews with both managers and employees working in a variety of divisions inside GME. An integrative qualitative data analysis approach is used to explore, synthesize, interpret and derive relationships resulting from the collected data. Findings This work advances the theory of organizational learning by testing the theme of collective learning cycle in a real work setting. It presents a real example of aligning market orientation into a collective learning cycle directed toward achieving competitive advantages. Research limitations/implications This study provides scholars and practitioners alike with a real scenario on how and why a four-step organizational learning cycle functions as a building block to generate a competitive advantage. It also discusses the elements of collective learning that are not captured by the four-step collective learning cycle. Factors facilitating market-based organizational learning are also explored. However, the results generated are contingent on the investigated case study circumstances, which are limited in generalizability. Practical implications The paper addresses a set of directions through which auto assembly firms leverage both collective learning practices and knowledge-driven strategy to gain competitive advantages. The GME paradigm indicates how a firm can use collective learning not only to respond to an internal need for change but also to react to external market forces and constraints. Originality/value This study is the first of its kind to investigate the value of the cyclic learning concept from a strategic viewpoint in a multinational organizational context. It enriches the primarily practitioner literature on aligning collective learning into strategy with rich empirical examination of the learning practices of a leading foreign subsidiary. It resolves a gap in the literature regarding how organizational learning and knowledge management processes are aligned to market-oriented competitive strategy. The paper draws a number of critical research issues that call for refinement of the organizational learning cycle theory.

scholarly journals How knowledge acquisition creates a competitive edge? A qualitative inquiry from international consultancy alliance

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Shakeel Aslam ◽  
Imran Ali ◽  
Ahmad Qammar ◽  
Lea Kiwan ◽  
Amandeep Dhir
Keyword(s):  
Knowledge Acquisition ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Qualitative Inquiry ◽  
Local Market ◽  
Content Type ◽  
Study Approach ◽  
Competitive Edge ◽  
Chinese Firm ◽  
Alliance Partners

PurposeThe current study attempts to bridge the existing gap related to the role of knowledge acquisition from international alliance partners to improve competitiveness by examining the distinct processes of knowledge acquisition and the challenges confronted in this learning process in order to enhance local and international market performance.Design/methodology/approachFollowing case-study approach based on systematic combining, the study presents a case of knowledge acquisition and learning in the context of an international consultancy alliance between leading Pakistani and Chinese engineering firms using six in-depth interviews of key engineers to explore the dynamic mechanisms for knowledge acquisition and learning from the Chinese firm. Grounded analysis drawn upon the Straussian version of grounded theory (GT) {{Strauss, 1990 #136} Strauss, 1998 #139} is used for data analysis in this research.FindingsIt was found that the processes of explicit and implicit knowledge acquisition from Chinese firms are integrated consultancy working, social and technical adaptability and seeking confirmation about the work done and knowledge/theories and models used in work. However, these processes are quite complex, posing serious challenges for National Engineering Services, Pakistan to acquire the required knowledge, which can be addressed through partners' motivation to share and acquire knowledge, cultural intelligence and friendship and informal association. The study also found that the knowledge acquired from technologically advanced international organizations by the host partner in the international strategic alliance not only provides a competitive edge to the local host in its local market but also builds its capacity to undertake similar projects in other parts of the world, substantially enhancing its market success.Originality/valueAdding up to the current literature that focuses on knowledge acquisition in a parent-subsidiary relationship, the current research proposes a framework for knowledge acquisition in the unique context of international strategic alliances. The research provides managerial guidelines to manage knowledge acquisition for gaining a competitive edge that would be helpful for the managers in the era of growing interdependence among the organizations across the borders.

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