THE RELATIONSHIP BETWEEN THE CHOICE OF GLOBAL EXPANSION STRATEGY AND MARKET ORIENTATION THROUGH ORGANIZATIONAL LEARNING PERSPECTIVE

Year 2019, Volume: 6 Issue: 5, 308 - 317, 31.05.2019

Tutku Seçkin Çelik

Abstract

As organizations mature and grow, one of the best growth options would be to expand

operations globally. While the choice of enter into foreign waters includes exporting,

franchising, licensing, joint ventures and wholly owned subsidiaries, options for wholly

owned subsidiaries may involve starting-up a completely new operation (greenfield

investment) and acquiring a host-country company (acquisition). On the other hand, market

orientation points out organization wide generation of market intelligence, and gain more

value in today’s business world. Similarly, in order to keep pace with changing competitive

conditions, organizational learning becomes popular among organizations. Choosing the

learning mode suitable for the organization should depend on market-orientation and the

choice of global expansion strategy.. Different choices indicate different requirements for

knowledge acquisition. Relying on these arguments, this study offers a factorial model to

deduce learning modes of organizations according to their market orientation levels (highlow)

and the choice of entry strategies (greenfield investments-acquisitions).

Keywords

Organizational Learning, Market Orientation, Global Expansion Strategy

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