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 in | Journal of international business studies Vol. 36; no. 2; pp. 187 - 208 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Basingstoke
Palgrave Macmillan Journals
01.03.2005
Palgrave Macmillan |
Series | Journal of International Business Studies |
Subjects | |
Online Access | Get full text |
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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. |
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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 |
Author_xml | – sequence: 1 givenname: Janet Y. surname: Murray fullname: Murray, Janet Y. – sequence: 2 givenname: Masaaki surname: Kotabe fullname: Kotabe, Masaaki – sequence: 3 givenname: Joe Nan surname: Zhou fullname: Zhou, Joe Nan |
BackLink | http://econpapers.repec.org/article/paljintbs/v_3a36_3ay_3a2005_3ai_3a2_3ap_3a187-208.htm$$DView record in RePEc |
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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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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 |
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