The role of market orientation in the business success of the MNC’s foreign subsidiaries


In recent discussions over the contribution of marketing to the strategy dialogue, market orientation has been singled out as being of particular importance in relation to the understanding of competitive advantage (Day et al 1992, Hunt and Lamb 2000). Research in the past has focused primarily on firms operating in domestic markets. As such, despite the recent progress, it is unclear of relevancy of market orientation as a construct in the context of multinational corporations (MNC) and their foreign subsidiaries. In this study, we set out to explore the role of market orientation in the subsidiary business performance. An investigation of a sample of 252 foreign subsidiaries in the UK revealed that except for “receptive? subsidiaries (Taggart 1998), market orientation has significant positive relationships with a number of business performance measures in all three other types of subsidiaries, suggesting that market orientation is a key driver for business performance at foreign subsidiaries.

Divisions: Aston Business School > Marketing & Strategy
Additional Information: Published in the proceedings of the 48th annual meeting of the Academy of International Business "From the Silk Road to Global Networks: Harnessing the Power of People in International Business", Beijing (CN) 23-26 June 2006 Editors (Mary Ann Von Glinow, Tunga Kiyak)
Event Title: 48th annual meeting of the Academy of International Business
Event Type: Other
Event Dates: 2006-06-23 - 2006-06-26
Full Text Link: https://aib.msu ... Proceedings.pdf
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PURE Output Type: Abstract
Published Date: 2006
Authors: Qu, Riliang

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