Purpose – This study aims to investigate how different micro and macro factors influence the local relationship strategy of European companies operating in the Asian market and their impact on future expansion plans. This study aims to provide actionable insights for European companies to develop effective strategies to support their expansion plan in Asia.
Design/methodology/approach – The data for this study were collected through a quantitative survey. The snowballing method was used to collect a sufficient sample size, as the respondent had to be in the top managerial position of a European company operating in Asia.
Findings – This research reveals the significance of micro, macro, and strategy factors influencing the local relationship strategies of EU companies operating in Asia and their impact on the company’s future expansion. Company size and market experience were found to impact local relationship strategies positively. Well-organised supplier structure and market potential also play a critical role, whereas local human capital and infrastructure influence change how companies approach local relationship strategies. Moreover, the mediating effect of local relationship strategies impacted future expansion plans.
Practical implication – This research suggests that European companies operating in Asia should focus on their size, market experience, market potential, supplier structure, human resources, and infrastructure when developing their local relationship strategies. Furthermore, companies should consider the mediating effect of local relationship strategies and their influence on the company’s future expansion. By doing so, companies can enhance their strategies, leading to better effectiveness and business growth in the Asian market.

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