IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v18y2009i6p617-629.html
   My bibliography  Save this article

Antecedents and consequences of global responsiveness: An empirical examination of MNCs in the global sourcing context

Author

Listed:
  • Tsai, Ming-Tien
  • Huang, Yen-Chih
  • Ma, Rong

Abstract

As global responsiveness (GR) has been recognised as critical for global market advantage, we draw upon social capital theory and develop a theoretical model which clarifies the determinants and consequences of GR. Based upon a cross-national sample of 118 MNCs from the U.S., Europe, and Asia, we found that intra-firm structural and inter-firm relational social capital, as reflected in integrative mechanisms and joint problem solving respectively, are positively associated with GR. In addition, whilst negatively related to global sourcing barriers, GR has a positive effect on MNC performance. Our findings also indicate that GR plays an essential role by fully mediating the associations of information-based mechanisms, people-based mechanisms, and joint problem solving with global sourcing barriers and MNC performance.

Suggested Citation

  • Tsai, Ming-Tien & Huang, Yen-Chih & Ma, Rong, 2009. "Antecedents and consequences of global responsiveness: An empirical examination of MNCs in the global sourcing context," International Business Review, Elsevier, vol. 18(6), pages 617-629, December.
    • Handle: RePEc:eee:iburev:v:18:y:2009:i:6:p:617-629
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593109000973
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peltokorpi, Vesa, 2007. "Intercultural communication patterns and tactics: Nordic expatriates in Japan," International Business Review, Elsevier, vol. 16(1), pages 68-82, February.
    2. Mol, Michael J. & van Tulder, Rob J.M. & Beije, Paul R., 2005. "Antecedents and performance consequences of international outsourcing," International Business Review, Elsevier, vol. 14(5), pages 599-617, October.
    3. Yli-Renko, H. & Autio, E. & Tontti, V., 2002. "Social capital, knowledge, and the international growth of technology-based new firms," International Business Review, Elsevier, vol. 11(3), pages 279-304, June.
    4. Harzing, Anne-Wil, 2001. "Of bears, bumble-bees, and spiders: the role of expatriates in controlling foreign subsidiaries," Journal of World Business, Elsevier, vol. 36(4), pages 366-379, January.
    5. N. Venkatraman, 1989. "Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement," Management Science, INFORMS, vol. 35(8), pages 942-962, August.
    6. Tsang, Eric W. K., 1999. "The knowledge transfer and learning aspects of international HRM: an empirical study of Singapore MNCs," International Business Review, Elsevier, vol. 8(5-6), pages 591-609, October.
    7. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    8. James Steiger & Alexander Shapiro & Michael Browne, 1985. "On the multivariate asymptotic distribution of sequential Chi-square statistics," Psychometrika, Springer;The Psychometric Society, vol. 50(3), pages 253-263, September.
    9. Carl F. Fey & Daniel R. Denison, 2003. "Organizational Culture And Effectiveness: Can American Theory Be Applied In Russia?," William Davidson Institute Working Papers Series 2003-598, William Davidson Institute at the University of Michigan.
    10. Kendall Roth & David M Schweiger & Allen J Morrison, 1991. "Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 369-402, September.
    11. Jianwen Liao & Harold Welsch & Michael Stoica, 2003. "Organizational Absorptive Capacity and Responsiveness: An Empirical Investigation of Growth–Oriented SMEs," Entrepreneurship Theory and Practice, , vol. 28(1), pages 63-86, January.
    12. K Kim & J-H Park & J E Prescott, 2003. "The global integration of business functions: a study of multinational businesses in integrated global industries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 327-344, July.
    13. Stroh, Linda K. & Caligiuri, Paula M., 1998. "Increasing global competitiveness through effective people management," Journal of World Business, Elsevier, vol. 33(1), pages 1-16.
    14. G. Tomas M. Hult & David J. Ketchen & Stanley F. Slater, 2005. "Market orientation and performance: an integration of disparate approaches," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1173-1181, December.
    15. James C. Anderson, 1987. "An Approach for Confirmatory Measurement and Structural Equation Modeling of Organizational Properties," Management Science, INFORMS, vol. 33(4), pages 525-541, April.
    16. Leonidou, Leonidas C., 1999. "Barriers to international purchasing: the relevance of firm characteristics," International Business Review, Elsevier, vol. 8(4), pages 487-512, August.
    17. Helena Yli‐Renko & Erkko Autio & Harry J. Sapienza, 2001. "Social capital, knowledge acquisition, and knowledge exploitation in young technology‐based firms," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 587-613, June.
    18. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    19. Anoop Madhok, 1995. "Revisiting Multinational firm's Tolerance for Joint Ventures: A Trust-Based approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 117-137, March.
    20. Schmid, Stefan & Schurig, Andreas, 2003. "The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary's business network," International Business Review, Elsevier, vol. 12(6), pages 755-782, December.
    21. Yeniyurt, Sengun & Tamer Cavusgil, S. & Hult, G. Tomas M., 2005. "A global market advantage framework: the role of global market knowledge competencies," International Business Review, Elsevier, vol. 14(1), pages 1-19, February.
    22. Wenpin Tsai, 2000. "Social capital, strategic relatedness and the formation of intraorganizational linkages," Strategic Management Journal, Wiley Blackwell, vol. 21(9), pages 925-939, September.
    23. Danny Miller, 1987. "The structural and environmental correlates of business strategy," Strategic Management Journal, Wiley Blackwell, vol. 8(1), pages 55-76, January.
    24. Griffith, David A. & Harvey, Michael G., 2004. "The influence of individual and firm level social capital of marketing managers in a firm's global network," Journal of World Business, Elsevier, vol. 39(3), pages 244-254, August.
    25. Persson, Magnus, 2006. "The impact of operational structure, lateral integrative mechanisms and control mechanisms on intra-MNE knowledge transfer," International Business Review, Elsevier, vol. 15(5), pages 547-569, October.
    26. Eriksson, Kent & Chetty, Sylvie, 2003. "The effect of experience and absorptive capacity on foreign market knowledge," International Business Review, Elsevier, vol. 12(6), pages 673-695, December.
    27. Luo, Yadong, 2000. "Dynamic capabilities in international expansion," Journal of World Business, Elsevier, vol. 35(4), pages 355-378, January.
    28. Carl F. Fey & Daniel R. Denison, 2003. "Organizational Culture and Effectiveness: Can American Theory Be Applied in Russia?," Organization Science, INFORMS, vol. 14(6), pages 686-706, December.
    29. Henk W. Volberda, 1996. "Toward the Flexible Form: How to Remain Vital in Hypercompetitive Environments," Organization Science, INFORMS, vol. 7(4), pages 359-374, August.
    30. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    31. Akira Takeishi, 2001. "Bridging inter‐ and intra‐firm boundaries: management of supplier involvement in automobile product development," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 403-433, May.
    32. P. M. Bentler & Chih-Ping Chou, 1987. "Practical Issues in Structural Modeling," Sociological Methods & Research, , vol. 16(1), pages 78-117, August.
    33. Kent Eriksson & Jan Johanson & Anders Majkgård & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 337-360, June.
    34. Bill McEvily & Alfred Marcus, 2005. "Embedded ties and the acquisition of competitive capabilities," Strategic Management Journal, Wiley Blackwell, vol. 26(11), pages 1033-1055, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pangarkar, Nitin & Wu, Jie, 2012. "Industry globalization and the performance of emerging market firms: Evidence from China," International Business Review, Elsevier, vol. 21(2), pages 196-209.
    2. Karjalainen, Katri & Salmi, Asta, 2013. "Continental differences in purchasing strategies and tools," International Business Review, Elsevier, vol. 22(1), pages 112-125.
    3. Vahlne, Jan-Erik & Ivarsson, Inge & Johanson, Jan, 2011. "The tortuous road to globalization for Volvo's heavy truck business: Extending the scope of the Uppsala model," International Business Review, Elsevier, vol. 20(1), pages 1-14, February.
    4. Callaghan, Christian William, 2021. "Consequences of deindustrialisation for globalisation: Insights for international business," International Business Review, Elsevier, vol. 30(3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Freeman, Susan & Hutchings, Kate & Lazaris, Miria & Zyngier, Suzanne, 2010. "A model of rapid knowledge development: The smaller born-global firm," International Business Review, Elsevier, vol. 19(1), pages 70-84, February.
    2. Yeniyurt, Sengun & Tamer Cavusgil, S. & Hult, G. Tomas M., 2005. "A global market advantage framework: the role of global market knowledge competencies," International Business Review, Elsevier, vol. 14(1), pages 1-19, February.
    3. Schwens, Christian & Kabst, Ruediger, 2011. "Internationalization of young technology firms: A complementary perspective on antecedents of foreign market familiarity," International Business Review, Elsevier, vol. 20(1), pages 60-74, February.
    4. Lindstrand, Angelika & Hånell, Sara Melén, 2017. "International and market-specific social capital effects on international opportunity exploitation in the internationalization process," Journal of World Business, Elsevier, vol. 52(5), pages 653-663.
    5. Hernández, Virginia & Nieto, María Jesús, 2016. "Inward–outward connections and their impact on firm growth," International Business Review, Elsevier, vol. 25(1), pages 296-306.
    6. Lindstrand, Angelika & Melén, Sara & Nordman, Emilia Rovira, 2011. "Turning social capital into business: A study of the internationalization of biotech SMEs," International Business Review, Elsevier, vol. 20(2), pages 194-212, April.
    7. Dasí, Àngels & Iborra, María & Safón, Vicente, 2015. "Beyond path dependence: Explorative orientation, slack resources, and managerial intentionality to internationalize in SMEs," International Business Review, Elsevier, vol. 24(1), pages 77-88.
    8. Doornich, June Borge, 2018. "Managerial learning from social capital during internationalization," International Business Review, Elsevier, vol. 27(4), pages 877-892.
    9. Shameen Prashantham & Julian Birkinshaw, 2015. "Choose Your Friends Carefully: Home-Country Ties and New Venture Internationalization," Management International Review, Springer, vol. 55(2), pages 207-234, April.
    10. Zahoor, Nadia & Al-Tabbaa, Omar, 2021. "Post-entry internationalization speed of SMEs: The role of relational mechanisms and foreign market knowledge," International Business Review, Elsevier, vol. 30(1).
    11. Shameen Prashantham & Charles Dhanaraj, 2015. "MNE ties and new venture internationalization: Exploratory insights from India," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 901-924, December.
    12. Niklas Åkerman, 2015. "International opportunity realization in firm internationalization: Non-linear effects of market-specific knowledge and internationalization knowledge," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 242-259, September.
    13. Liu, Chia-Ling (Eunice) & Ghauri, Pervez N. & Sinkovics, Rudolf R., 2010. "Understanding the impact of relational capital and organizational learning on alliance outcomes," Journal of World Business, Elsevier, vol. 45(3), pages 237-249, July.
    14. Bobillo, Alfredo M. & López-Iturriaga, Felix & Tejerina-Gaite, Fernando, 2010. "Firm performance and international diversification: The internal and external competitive advantages," International Business Review, Elsevier, vol. 19(6), pages 607-618, December.
    15. Camisón, César & Forés, Beatriz, 2011. "Knowledge creation and absorptive capacity: The effect of intra-district shared competences," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 66-86, March.
    16. Foglia, Emanuela & Ferrario, Lucrezia & Lettieri, Emanuele & Porazzi, Emanuele & Gastaldi, Luca, 2019. "What drives hospital wards’ ambidexterity: Insights on the determinants of exploration and exploitation," Health Policy, Elsevier, vol. 123(12), pages 1298-1307.
    17. Beugelsdijk, S. & Koen, C.I. & Noorderhaven, N.G., 2004. "Organizational Culture and Relationship Skills," Other publications TiSEM 29a52938-acd6-4261-841f-5, Tilburg University, School of Economics and Management.
    18. Yaprak, Attila & Tasoluk, Burcu & Kocas, Cenk, 2015. "Market orientation, managerial perceptions, and corporate culture in an emerging market: Evidence from Turkey," International Business Review, Elsevier, vol. 24(3), pages 443-456.
    19. Seyed Meysam Zolfaghari Ejlal Manesh & Alex Rialp-Criado, 2019. "International ecopreneurs: The case of eco-entrepreneurial new ventures in the renewable energy industry," Journal of International Entrepreneurship, Springer, vol. 17(1), pages 103-126, March.
    20. Zhou, Lianxi & Wu, Aiqi, 2014. "Earliness of internationalization and performance outcomes: Exploring the moderating effects of venture age and international commitment," Journal of World Business, Elsevier, vol. 49(1), pages 132-142.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:18:y:2009:i:6:p:617-629. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.