Strategic Alliance-Based Sourcing and Market Performance: Evidence from Foreign Firms Operating in China

Although foreign multinational firms from the Triad regions increasingly use mainland China as both a sourcing and a marketing location, no study has directly examined the sourcing strategy-performance linkage. Using resource complementarity and resource dependence theory, we extend the sourcing lit...

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Bibliographic Details
Published inJournal of international business studies Vol. 36; no. 2; pp. 187 - 208
Main Authors Murray, Janet Y., Kotabe, Masaaki, Zhou, Joe Nan
Format Journal Article
LanguageEnglish
Published Basingstoke Palgrave Macmillan Journals 01.03.2005
Palgrave Macmillan
SeriesJournal of International Business Studies
Subjects
Alliances
Business innovation
Business management
Business partnership
Business structures
Business studies
China
Collaboration
Competitive advantage
Corporate strategies
Correlation analysis
Economic resources
Economic uncertainty
Financial performance
Hypotheses
Market structure
Marketing
Multinational corporations
Product differentiation
Product innovation
Proprietary
Researchers
Sourcing
Strategic planning
Studies
Suppliers
Supply chain management
Technological innovation
Transition economies
Uncertainty
Value chain
Variables
China
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Summary:Although foreign multinational firms from the Triad regions increasingly use mainland China as both a sourcing and a marketing location, no study has directly examined the sourcing strategy-performance linkage. Using resource complementarity and resource dependence theory, we extend the sourcing literature and apply these perspectives to an important transitional economy-China. These two theoretical perspectives suggest that product and uncertainty factors moderate the relationship between strategic alliance-based sourcing (SA sourcing) of major components and market performance. We find that, at low levels of product innovativeness and technological uncertainty, the use of SA sourcing is positively related to market performance. However, the effects of product differentiation and demand uncertainty on the sourcing-performance relationship are insignificant.
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ISSN:0047-2506
1478-6990
DOI:10.1057/palgrave.jibs.8400120