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1. Introduction
The increase in uncertainty and the emerging shifts in the principles of competition in global markets (Cavusgil et al., 2014; Zainal et al., 2009) require firms to constantly review the growth potential and change in the marketplace to stay competitive. In response to these challenges in the business environment, choosing the focus and direction of growth strategy has become a critical decision that involves a high degree of risk in determining the company’s competitive position (Masiero et al., 2017; Rexhepi et al., 2017). For this reason, companies assume growth as their central strategic paradigm (Gümüş and Apak, 2011), and a company must use its ability to grow in its environment (Prahalad and Hamel, 1990).
Evidence from the literature refers to the growing importance of growth strategies in the emerging economies and the need to compete on the international level. This is because of the liberalization of the economic sectors (Rammal and Rose, 2014) and the need to achieve economic growth that leads to the prosperity of citizens and increases the standard of living as well as allowing the development of health services and use of technologies. For this reason, the focus on growth in emerging economies is essential for governments, business companies and the public (Mohy ul din et al., 2017). Economic growth creates jobs (Soto, 2009) and attracts foreign direct investment (FDI) (Mun et al., 2009).
Growth can be achieved either by internal or external strategies (Ortiz-de-Urbina-Criado et al., 2014). The internal option is slow, while the external is preferable because it leads to faster results (Išoraitė, 2009). External growth is usually achieved by engaging in merger and acquisition (M&A) or strategic alliance (Ömür et al., 2012). External growth strategies foster the growth of businesses and enhance their access to technology, knowledge transfer, financial capital and market capabilities (Cassia and Minola, 2012; Lechner and Dowling, 2003; Pook et al., 2017).
Companies benefit greatly from alliances and M&A for reducing costs and increasing the efficiency of distribution networks (Qiu, 2010). However, the literature reveals that researchers focused either on the effect of M&A (Aik et al., 2015; Shanmugam and Nair, 2004) or on strategic alliance (Abdullah and Zainal, 2011; Sambasivan et al.,...