The impact of market and nonmarket strategies on firm performance in Lithuania

Parnell, John Alan (author), Davidson, Michael W. (author)

This study examines the impact of market strategies (global growth, differentiation, and cost leadership) and nonmarket strategies (political engagement and social responsibility) on firm performance in Lithuania. Based on survey data from 114 managers analyzed using partial least squares structural equation (PLS-SEM) modeling, a global growth/differentiation strategy has a positive impact on performance, whereas cost leadership does not. Nonmarket strategies positively influence firm performance, with larger firms benefiting more, ostensibly due to greater resource availability and institutional influence. Firm size moderates the relationship between nonmarket strategies and perfor- mance, highlighting the importance of tailoring strategies to an organization’s specific characteristics. By focusing on firm size as a moderating factor, this study offers a nuanced understanding of how firms in Lithuania adapt strategies to align with evolving institutional frameworks and market dynamics. Managers in transitional and recently transi- tioned economies should integrate market and nonmarket strategies effectively while tailoring approaches based on organizational size.

• Language: English
• Keywords: Lithuania, entrepreneurship, company performance, nonmarket strategy, central and eastern europe (CEE), firm size, firm performance
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Publication date: 01.12.2025
• Year: 2025
• Number of pages: Str. 221-235
• Numbering: Vol. 27, iss. 4, article no. 3
• PID: 20.500.12556/RUL-176673
• UDC: 658
• ISSN on article: 2335-4216
• DOI: 10.15458/2335-4216.1362
• COBISS.SI-ID: 259620099
• Publication date in RUL: 08.12.2025

Record is a part of a journal

• Title: Economic and business review
• Publisher: Ekonomska fakulteta
• ISSN: 2335-4216
• COBISS.SI-ID: 268649216

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

Secondary language

• Language: Slovenian
• Keywords: Litva, srednja in vzhodna Evropa, podjetništvo, poslovanje podjetja