Strengthening a Subsidiary Strategy Orientation based on the Resource-Based View

The main aim of the current study was to determine how can a subsidiary successfully formulate its strategy based on an RBV perspective to strengthen its strategic orientation. From a literature review, the RBV theory was researched and a RBV framework was extended with relevant literature in order to aid in formulation of a subsidiary strategy. Therefore, the framework was implemented in one case study company, where the internal perspective was analyzed with an extended RBV framework for perfect alignment with the subsidiary and parent resources and capabilities. In order to reach competitive advantage and to strengthen their strategic orientation. This framework offers an approach for subsidiaries to formulate a strategy which complements existing literature that identifies that subsidiary performance is primarily determined by parent and subsidiary resources and capabilities.