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Strategy competence: a study of successful business establishments
Author(s) -
Pehrsson Anders
Publication year - 2004
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.687
Subject(s) - competitor analysis , business , competence (human resources) , core competency , marketing , strategic management , new business development , competitive advantage , empirical research , industrial organization , business model , management , economics , philosophy , epistemology
This article presents a study of the link between strategy competence and performance in the context of international business establishments. The concept of strategy competence encompasses business relatedness and market familiarity. The empirical findings are based on a study of 173 Swedish ventures in Germany and show that high relatedness between the core business and the local business, in terms of similar requirements for management skills and brand recognition, leads to high performance of the local business. At the same time, extensive experience of business strategies of local competitors leads to higher performance. In light of the research findings, management would be well advised to strive for high resource relatedness between the market entry business and the core business of the firm and to focus on the build‐up of key market experiences, such as knowledge of the business strategies of local competitors.Copyright © 2004 John Wiley & Sons, Ltd.