Firm response strategies under globalization impact in high-tech and knowledge intensive fields

Mika Gabrielsson, Peter Gabrielsson, Zuhair Al-Obaidi, Markku Salimäki

Research output: Contribution to journalArticleScientificpeer-review


Globalization, particularly the stronger presence of cost competitive East Asian rivals, are putting heavy competitive pressure on high-tech and knowledge-intensive firms from the industrialized countries. In this paper we explore several specific theoretical approaches, namely firm competitive advantage, the
resource-based view, and the eclectic model, to develop a theoretical framework by which it is possible to evaluate the impact of globalization on firms originating in small and open economies. We then investigate operation mode and marketing strategies as a possible means to respond to globalization pressure. The research highlights the need to develop dynamic capabilities, particularly in configuration and coordination of the global value chain, and recommends usage of response strategies that result in multiple advantages, such as cost and differentiation. Also, focus strategy was used especially in the growth phase of the industry. Moreover, the results indicate that the response strategies are environment- and situation-specific and their nature is dependent on whether the industry is in the growth or maturity stage.
Original languageEnglish
Peer-reviewed scientific journalLiiketaloudellinen aikakauskirja
Issue number1
Pages (from-to)9-32
Publication statusPublished - 2008
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • globalization
  • competitiveness
  • competition
  • competitive advantage
  • response strategy


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