Competitive Dynamics, Global Industry Cycles, Integration-Responsiveness, and Financial Performance in Emerging and Industrialized Country Markets
Abstract
This paper examines competitive dynamics, industry cycles, and financial performance in emerging and industrialized country markets through the lens of the integration-responsiveness framework in the global information technology industry in Taiwan and the global construction equipment industry in the US. It investigates how firms in these industries fit their strategies to their strategic orientations to sustain competitive advantages. A survey of chief executives of 351 Taiwanese firms and 349 US firms highlighted the presence of industry pressures driving firms towards local responsiveness, multifocal, and global integration strategic orientations. The industry pressures predicted six different competitive strategies (conservative cost control, quality reputation, complex innovation, marketing differentiation, premium positioning, and breadth) as proposed by prior research. Multigroup comparisons of the structural models for the Taiwanese information technology and the US construction equipment industries show that firms that perceive pressures for global integration, multifocal orientation, and local responsiveness place similar emphasis on the six competitive strategies. The major finding of the comparison is that complex innovation has a dominant effect on competitive dynamics and financial performance. Other competitive strategies, while important, were not as critical to success for global firms competing in emerging and industrialized country markets.Download Info
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Article provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.
Volume (Year): 7 (2008)
Issue (Month): 1 (April)
Pages: 61-88
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Postal: 100 Wenhwa Road, Seatwen, Taichung
Web page: http://www.ijbe.org/
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Related research
Keywords: strategic management; information technology; construction equipment;Find related papers by JEL classification:
- L7 - Industrial Organization - - Industry Studies: Primary Products and Construction
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
References
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- Sunil Venaik & David F Midgley & Timothy M Devinney, 2005. "Dual paths to performance: the impact of global pressures on MNC subsidiary conduct and performance," Journal of International Business Studies, Palgrave Macmillan, vol. 36(6), pages 655-675, November.
- Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 467-495, September.
- Luo, Yadong, 2002. "Organizational dynamics and global integration: A perspective from subsidiary managers," Journal of International Management, Elsevier, vol. 8(2), pages 189-215.
- J K Giacobbe-Miller & D J Miller & W Zhang & V I Victorov, 2003. "Country and organizational-level adaptation to foreign workplace ideologies: a comparative study of distributive justice values in China, Russia and the United States," Journal of International Business Studies, Palgrave Macmillan, vol. 34(4), pages 389-406, July.
- Julius H Johnson, 1995. "An Empirical Analysis of the Integration-Responsiveness Framework: U.S. Construction Equipment Industry Firms in Global Competition," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 621-635, September.
- Kendall Roth & Allen J Morrison, 1990. "An Empirical Analysis of the Integration-Responsiveness Framework in Global Industries," Journal of International Business Studies, Palgrave Macmillan, vol. 21(4), pages 541-564, December.
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