Performance Implications of International Strategy

This study explores the systematic relationship between business unit-level performance and strategic dimensions of international strategy. To capture the "match" effect between different-level strategies, this study examines parent-level investment strategy and subsidiary-level business strategy together within an integrated model. On the basis of a cross-sectional empirical analysis of the data on foreign-invested enterprises (FIE) operating in China, it is found that (a) among business strategy variables, product quality, sales force marketing, and liberal credit granting have significantly positive influences on FIE performance; (b) among investment strategy variables, industry selection and timing of entry are significant ones affecting venture's return and market growth; (c) interactions between business strategy and investment strategy significantly impact on FIE performance.

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