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Corporate Market and Nonmarket Strategies in Asia: A Conceptual Framework

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  • Aggarwal, Vinod K.

Abstract

Despite recent currency crises, most of the Asia-Pacific economies continue to be among the most attractive markets in the world and now appear to be recovering rapidly. An important element in understanding the dynamics of firm strategies in Asia is the nature of nonmarket strategies, which concern efforts to respond to and influence the political-economic-social environment. To examine such nonmarket strategies and how they fit with other firm tasks, this article first focuses on “positional analysis”—that is, how market forces, firm competencies, and the nonmarket environment influence the choice of trade, investment, or some mix, at the national, regional, or global level. It then considers the nature of “strategic analysis,” consisting of a firm's choices of market arena, a transaction cost analysis of organization forms for market penetration, and a distributive politics analysis of nonmarket issues. These factors combine to influence the firm's integrated strategic choice. Implementation of this choice is based on “tactical analysis” that focuses on the market, organizational, and nonmarket tactics that firms must pursue to succeed with their chosen strategy.

Suggested Citation

  • Aggarwal, Vinod K., 2001. "Corporate Market and Nonmarket Strategies in Asia: A Conceptual Framework," Business and Politics, Cambridge University Press, vol. 3(2), pages 89-108, August.
    • Handle: RePEc:cup:buspol:v:3:y:2001:i:02:p:89-108_00
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    Cited by:

    1. Evans Ana Maria, 2013. "Building institutional capacity: from pervasive individualism to sustained coordination in small firm sectors," Business and Politics, De Gruyter, vol. 15(2), pages 163-186, August.
    2. Solís Mireya, 2013. "Business advocacy in Asian PTAs: a model of selective corporate lobbying with evidence from Japan," Business and Politics, De Gruyter, vol. 15(1), pages 87-116, March.
    3. Holden Chris & Lee Kelley & Fooks Gary Jonas & Wander Nathaniel, 2010. "The Impact of Regional Trade Integration on Firm Organization and Strategy: British American Tobacco in the Andean Pact," Business and Politics, De Gruyter, vol. 12(4), pages 1-32, December.
    4. Justine Kyove & Katerina Streltsova & Ufuoma Odibo & Giuseppe T. Cirella, 2021. "Globalization Impact on Multinational Enterprises," World, MDPI, vol. 2(2), pages 1-15, April.
    5. Cosmina Lelia Voinea & Magdelijn Emaus, 2018. "The Effect of Nonmarket Capabilities on Firm Performance: How Knowledge and Capabilities Accumulated from Nonmarket Arenas Contribute to Firm Performance," International Business Research, Canadian Center of Science and Education, vol. 11(1), pages 1-18, January.

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