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Drivers of Virtual Interfirm Integration and Its Impact on Performance in International Customer–Supplier Relationships

Author

Listed:
  • Daekwan Kim

    (Florida State University)

  • Ruey-Jer Bryan Jean

    (National Chengchi University)

  • Rudolf R. Sinkovics

    (The University of Manchester
    Lappeenranta University of Technology
    Temple University)

Abstract

Consensus exists suggesting that advances in information and communication technologies are a major driver in restructuring Multinational Enterprises (MNEs) and their cross-border supply chain activities. However, the role of virtual interfirm integration and its antecedents, contingency conditions and its association with performance in international exchange relationship is not clearly specified. This study proposes that virtual interfirm integration can serve as an alternative governance mechanism for suppliers. Thus, we examine its drivers, moderators, and performance outcomes in international exchange relationships in the context of suppliers and their MNE customers. The empirical context is a study of 240 Taiwanese-based electronics equipment manufacturers. We explore the effect of communication culture, internal, inter-organizational, and environmental dimensions on virtual interfirm integration, and supplier performance in international exchange. We conclude by sharing our findings on the pertinence of virtual interfirm integration in the supplier–MNE buyer relationships.

Suggested Citation

  • Daekwan Kim & Ruey-Jer Bryan Jean & Rudolf R. Sinkovics, 2018. "Drivers of Virtual Interfirm Integration and Its Impact on Performance in International Customer–Supplier Relationships," Management International Review, Springer, vol. 58(3), pages 495-522, June.
    • Handle: RePEc:spr:manint:v:58:y:2018:i:3:d:10.1007_s11575-018-0344-4
    DOI: 10.1007/s11575-018-0344-4
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    3. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    4. Feliciano-Cestero, María M. & Ameen, Nisreen & Kotabe, Masaaki & Paul, Justin & Signoret, Mario, 2023. "Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    5. Mara Bergamaschi & Cristina Bettinelli & Elena Lissana & Pasquale Massimo Picone, 2021. "Past, ongoing, and future debate on the interplay between internationalization and digitalization," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 983-1032, December.
    6. Hongmei Shan & Ying Li & Jing Shi, 2020. "Influence of Supply Chain Collaborative Innovation on Sustainable Development of Supply Chain: A Study on Chinese Enterprises," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    7. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    8. Kim, Daekwan & Shin, Geon-Cheol & Jean, Ruey-Jer “Bryan” & Tamer Cavusgil, S. & Chen, Charles, 2023. "Degree of involvement in supply chain system development and relational performance: A potential dark side in supply chain relationships," Journal of Business Research, Elsevier, vol. 154(C).
    9. Jean, Ruey Jer Bryan & Kim, Daekwan & Choi, Kyuyeong, 2021. "Pattern of information technology use and relationship learning in international customer-supplier relationships," International Business Review, Elsevier, vol. 30(4).

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