Foreign subsidiary development in the context of a global recession: a case of the furniture industry in Vietnam

There is a lack of studies analysing the variation in competitive advantage and operational strategies among foreign subsidiaries in the wood product sector, especially in the emerging country context. This research attempts to enhance an understanding of phenomenon with a special focus on foreign subsidiaries in the furniture industry in Vietnam. The qualitative research based on in-depth interviews in eight companies aims to elicit managerial experience in helping foreign subsidiaries overcome external threats during and after a recession period. Our results showed that under the influence of the recent global downturn, companies were affected in many different ways but one common feature has been the higher visibility of raw material legality and certification requirements throughout global trade flows in wooden furniture. In conclusion, from the managerial perspective there is no particular strategy guaranteeing an organization's success; instead, subsidiaries should flexibly enhance their strategic planning based on their own resources, organizational conditions and goals.