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Does 'the China Option' influence subsidiary technology sourcing strategy?

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  • Swan, K. Scott
  • Allred, Brent B.
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    Abstract

    We draw on transaction cost economics and the technology innovation management literature to advance a contextual model of the link between the perceived influence of China on technology strategy and MNC subsidiary sourcing strategy. In particular, we hypothesize that the relationship between a perceived influence of China on technology strategy and MNC subsidiary process technology sourcing strategy is moderated by the innovation context. Here, we consider the innovation context to be externally represented by the appropriability regime and dominant design, while internally it is measured by the subsidiary's level of complementary assets. We test our predictions on a multi-industry sample of 111 MNC subsidiaries from the Association of Equipment Manufacturers. We find support for the moderating influence of the innovation contexts of appropriability regime and complementary assets.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 15 (2009)
    Issue (Month): 2 (June)
    Pages: 169-180

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    Handle: RePEc:eee:intman:v:15:y:2009:i:2:p:169-180

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    Related research

    Keywords: The China Option Process Technology Sourcing Subsidiary Technology Sourcing Strategy;

    References

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    1. Graf, Michael & Mudambi, Susan M., 2005. "The outsourcing of IT-enabled business processes: A conceptual model of the location decision," Journal of International Management, Elsevier, vol. 11(2), pages 253-268, June.
    2. Mudambi, Ram, 2002. "Knowledge management in multinational firms," Journal of International Management, Elsevier, vol. 8(1), pages 1-9.
    3. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 625-645, December.
    4. Teece, David J., 1993. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 22(2), pages 112-113, April.
    5. Allred, Brent B. & Park, Walter G., 2007. "The influence of patent protection on firm innovation investment in manufacturing industries," Journal of International Management, Elsevier, vol. 13(2), pages 91-109, June.
    6. Mol, Michael J. & Pauwels, Pieter & Matthyssens, Paul & Quintens, Lieven, 2004. "A technological contingency perspective on the depth and scope of international outsourcing," Journal of International Management, Elsevier, vol. 10(2), pages 287-305.
    7. Anupama Phene & Paul Almeida, 2008. "Innovation in multinational subsidiaries: The role of knowledge assimilation and subsidiary capabilities," Journal of International Business Studies, Palgrave Macmillan, vol. 39(5), pages 901-919, July.
    8. Jon I Martinez & J Carlos Jarillo, 1991. "Coordination Demands of International Strategies," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 429-444, September.
    9. Paul M Swamidass, 1993. "Import Sourcing Dynamics: An Integrative Perspective," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 671-691, December.
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