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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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
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Abstract 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.
AbstractList 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. Reprinted by permission of Palgrave Macmillan Ltd.
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. Journal of International Business Studies (2005) 36, 187–208. doi:10.1057/palgrave.jibs.8400120
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. [PUBLICATION ABSTRACT]
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.
Author Murray, Janet Y.
Kotabe, Masaaki
Zhou, Joe Nan
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Snippet Although foreign multinational firms from the Triad regions increasingly use mainland China as both a sourcing and a marketing location, no study has directly...
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StartPage 187
SubjectTerms 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
Title Strategic Alliance-Based Sourcing and Market Performance: Evidence from Foreign Firms Operating in China
URI https://www.jstor.org/stable/3875226
http://econpapers.repec.org/article/paljintbs/v_3a36_3ay_3a2005_3ai_3a2_3ap_3a187-208.htm
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https://www.proquest.com/docview/38137405
Volume 36
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