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

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

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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  • Swan, K. Scott & Allred, Brent B., 2009. "Does 'the China Option' influence subsidiary technology sourcing strategy?," Journal of International Management, Elsevier, vol. 15(2), pages 169-180, June.
    • Handle: RePEc:eee:intman:v:15:y:2009:i:2:p:169-180
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    Cited by:

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    2. George O. White & Orhun Guldiken & Thomas A. Hemphill & Wu He & Mehdi Sharifi Khoobdeh, 2016. "Trends in International Strategic Management Research From 2000 to 2013: Text Mining and Bibliometric Analyses," Management International Review, Springer, vol. 56(1), pages 35-65, February.
    3. Hsu, Sean Tsu-Hsiang & Iriyama, Akie & Prescott, John E., 2016. "Lost in Translation or Lost in Your Neighbor's Yard: The Moderating Role of Leverage and Protection Mechanisms for the MNC Subsidiary Technology Sourcing–Performance Relationship," Journal of International Management, Elsevier, vol. 22(1), pages 84-99.
    4. Murray, Janet Y. & Fu, Frank Q., 2016. "Strategic guanxi orientation: How to manage distribution channels in China?," Journal of International Management, Elsevier, vol. 22(1), pages 1-16.

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