INTERNATIONAL STRATEGY AND ENVIRONMENT - AN ASSESSMENT OF THE PERFORMANCE RELATIONSHIP

This study develops a classification of international business-level strategies built on the dimensions of segment differentiation and geographic scope. In addition, performance outcomes associated with specific international environment and business-level strategy matches are suggested. Using information from firms competing in both global and multidomestic industries, the study finds that geographic scope and segment differentiation can be used to distinguish four international strategies, the effectiveness of which is a function of the environments in which firms compete.