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Linking Product and Process Innovations and Modes of International Sourcing in Global Competition: A Case of Foreign Multinational Firms


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  • Masaaki Kotabe

    (University of Texas at Austin)

  • Janet Y Murray

    (University of Missouri–Columbia)

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    In increasingly complex global competition, multinational firms, U.S. and foreign alike, have stepped up international sourcing of components and finished products to serve various markets. Since an increasing portion of global competition is shaped by European and Japanese multinational firms with due emphasis on product quality and manufacturing, it is an opportune time to examine the like among their product development, manufacturing, and sourcing activities. Those European and Japanese multinational firms marketing products in the United States are chosen as subjects of this study.The purpose of this paper is twofold. First, a taxonomy of sourcing strategies is developed to systematically identify a variety of sourcing patterns. This taxonomy helps resolve some of the conceptual ambiguities and paves the way for further empirical investigation. Second, based on a few variables identified in the taxonomy, performance implications of various sourcing strategies are explored.© 1990 JIBS. Journal of International Business Studies (1990) 21, 383–408

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 21 (1990)
    Issue (Month): 3 (September)
    Pages: 383-408

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    Handle: RePEc:pal:jintbs:v:21:y:1990:i:3:p:383-408

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    Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK

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    Cited by:
    1. Kotabe, Masaaki & Murray, Janet Y., 1996. "Determinants of intra-firm sourcing and market performance," International Business Review, Elsevier, Elsevier, vol. 5(2), pages 121-135, April.
    2. Moon, Hwy-Chang & Roehl, Thomas W., 2001. "Unconventional foreign direct investment and the imbalance theory," International Business Review, Elsevier, Elsevier, vol. 10(2), pages 197-215, April.
    3. Manolopoulos, Dimitris & Papanastassiou, Marina & Pearce, Robert, 2005. "Technology sourcing in multinational enterprises and the roles of subsidiaries: An empirical investigation," International Business Review, Elsevier, Elsevier, vol. 14(3), pages 249-267, June.
    4. Nassimbeni, Guido & Sartor, Marco, 2007. "Sourcing in China: a typology," International Journal of Production Economics, Elsevier, Elsevier, vol. 107(2), pages 333-349, June.
    5. Griffith, David A. & Harmancioglu, Nukhet & Droge, Cornelia, 2009. "Governance decisions for the offshore outsourcing of new product development in technology intensive markets," Journal of World Business, Elsevier, Elsevier, vol. 44(3), pages 217-224, July.
    6. Nassimbeni, Guido, 2006. "International sourcing: Empirical evidence from a sample of Italian firms," International Journal of Production Economics, Elsevier, Elsevier, vol. 103(2), pages 694-706, October.
    7. Javalgi, Rajshekhar (Raj) G. & Dixit, Ashutosh & Scherer, Robert F., 2009. "Outsourcing to emerging markets: Theoretical perspectives and policy implications," Journal of International Management, Elsevier, Elsevier, vol. 15(2), pages 156-168, June.
    8. Lanctot, Aldor & Swan, K. Scott, 2000. "Technology acquisition strategy in an internationally competitive environment," Journal of International Management, Elsevier, Elsevier, vol. 6(3), pages 187-215.
    9. Allred, Brent B. & Swan, K. Scott, 2004. "Contextual influences on international subsidiaries' product technology strategy," Journal of International Management, Elsevier, Elsevier, vol. 10(2), pages 259-286.
    10. Gilley, K. Matthew & Greer, Charles R. & Rasheed, Abdul A., 2004. "Human resource outsourcing and organizational performance in manufacturing firms," Journal of Business Research, Elsevier, Elsevier, vol. 57(3), pages 232-240, March.
    11. José Luis González Pernia & M. Davide Parrilli & Iñaki Peña, . "Learning Modes, Types of Innovation and Economic Performance," Working Papers, Basque Institute of Competitiveness 2012R01, Basque Institute of Competitiveness.
    12. Tate, Wendy L. & Ellram, Lisa M. & Bals, Lydia & Hartmann, Evi, 2009. "Offshore outsourcing of services: An evolutionary perspective," International Journal of Production Economics, Elsevier, Elsevier, vol. 120(2), pages 512-524, August.
    13. Karjalainen, Katri & Salmi, Asta, 2013. "Continental differences in purchasing strategies and tools," International Business Review, Elsevier, Elsevier, vol. 22(1), pages 112-125.


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