Determinants of Market Orientation of Foreign Operations in Greece: A Meta-Internationalization Analysis from the Subsidiary Perspective

Abstract

The purpose of this paper is to extent internationalization theories by investigating the potential moderating impact of three common foreign direct investment (FDI) characteristics (years of operation, size and role) on the market orientation of MNE subsidiaries located in Greece. By developing hypotheses based on existing literature, our findings indicate that market-seeking FDI and import substitution strategies correlate with an increased importance for the focal, and those markets which are characterized by geographical proximity and similar structural elements (Balkan countries). Strategic-seeking FDI and subsidiaries’ mandate to extent MNEs’ original product line mainly targets at supplying integrated economic areas (EU) and global markets. Subsidiaries which are relatively smaller and more recently established tend to focus on more geographically dispersed markets. In the main, the results meet our expectations for a middle-income peripheral European economy, where foreign operations show strong elements of static and immediate competitiveness, but also emerging potentials to upgrade their roles into more sophisticated regional representatives of their respective network. Keywords: Internationalization Strategies, Subsidiaries, Greece