Hybrid strategy works best when high-tech companies go global
The study challenges the traditional view that companies can go global by adhering to one competitive strategy alone
Last Updated at April 25, 2016 00:06 IST
Following a hybrid competitive strategy leads to superior financial performance in the internationalisation of high-technology companies, shows a new Finnish study in the field of marketing. The study challenges the traditional view that companies can go global by adhering to one competitive strategy alone.
The study by professor of international business, University of Eastern Finland, Mika Gabrielsson, senior researcher at Aalto University Tomi Seppälä, and professor of marketing, University of Vaasa, Peter Gabrielsson, used empirical data to analyse companies' implementation of a hybrid competitive strategy and their achievement of financial profitability while internationalising in the high-tech market.
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Earlier studies have proposed inconclusive viewpoints on the conditions suitable for multinationals to realise a hybrid competitive strategy. The new study shows the realisation of a hybrid competitive strategy is dependent on the globalisation stage and key resources of the company.
Also, a hybrid strategy observes environmental factors and creates the preconditions for globalising companies to achieve the best possible financial performance.
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First Published: Mon, April 25 2016. 00:06 IST