Firm Survival under Domestic and Foreign Competition: An Integrative Review of Product Innovation, Cost-Efficiency Strategies and Strategic Market Adaptation

Abstract

This review examines how product innovation, cost-efficiency strategies and strategic market adaptation shape firm survival under domestic rivalry, multinational entry and import competition. A structured integrative review design is used to synthesize peer-reviewed research published between 2019 and 2026 across strategic management, international business, entrepreneurship, industrial economics and organizational resilience. Because the evidence varies substantially in context and method, the analysis relies on thematic comparison rather than statistical aggregation. The study found that competitive pressure does not produce a uniform strategic response. Innovation can protect firms through differentiation, quality upgrading and renewed customer value, but severe import pressure may also constrain research and development, particularly among firms with weak resources or distant technological positions. Cost efficiency supports survival when it raises productivity, improves processes and releases resources for renewal; indiscriminate retrenchment can instead erode capabilities. Strategic adaptation, including servitization, business-model innovation, digitalization, alliances and market repositioning, is especially important where direct price competition is unsustainable. Across the literature, outcomes depend on absorptive capacity, financial slack, managerial capability, institutional support, sector and competitive intensity. The review integrates three frequently separated response domains into a single capability-based account of survival. It argues that survival is most plausible when firms combine distinctive products, disciplined resource use and timely market reconfiguration.