GLOBAL, NATIONAL AND RESOURCE-BASED STRATEGIES - AN EXAMINATION OF STRATEGIC CHOICE AND PERFORMANCE IN THE VEHICLE COMPONENTS INDUSTRY

For an industry facing both internationalization and impending maturit y, available strategic prescriptions suggest four options which are at variance with each other. To assess the validity of competing strateg ic prescriptions, the outcomes of these four options are examined empi rically by means of a longitudinal study of the vehicle components ind ustry. Rather than going for strategies based on market domination, la rge British vehicle component companies would generally have performed better had they concentrated on resource-based priorities; market dom ination has generally only proved feasible in national markets, and th e outcomes of such strategies have proved little short of disastrous. Explanations are explored through a case study of one British national market leader and through international comparisons from Germany, the U.S.A. and Japan, which highlight the importance of manufacturing pol icies as primary sources of sustainable competitive advantage.