Global integration strategies of small and medium multinationals: Evidence from Taiwan
This study replicates and extends Birkinshaw et al.’s (1995) model of the predictors of business unit integration of large Western multinational corporations (MNCs). Our study investigates the global integration strategies of Taiwanese small and medium sized enterprises (SMEs) competing in the global information technology (IT) industry. It confirms the importance of some structural forces (i.e. economies of scale and standard market demands) in the global integration strategies of Taiwanese SMEs thereby expanding the applicability of existent internationalization theories developed primarily in the context of large Western MNCs to non-Western SMEs. This study finds three results that add new knowledge to the current SME literature and provides managerial implications. First, it finds a negative relationship between competitive actions and business unit integration. Second, it finds that in the optimally globalized IT industry there is no direct effect of business unit integration on performance. Third, it finds a direct effect of differential comparative advantage on performance.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 48 (2013)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kendall Roth & Allen J Morrison, 1992. "Implementing Global Strategy: Characteristics of Global Subsidiary Mandates," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 715-735, December.
- Levy, B., 1988. "Korean And Taiwanese Firms As International Competitors: The Challenges Ahead," Center for Development Economics 110, Department of Economics, Williams College.
- Jarillo, J. Carlos, 1989. "Entrepreneurship and growth: the strategic use of external resources," Journal of Business Venturing, Elsevier, vol. 4(2), pages 133-147, March.
- Ruey-Jer (Bryan) Jean & Rudolf R Sinkovics & S Tamer Cavusgil, 2010. "Enhancing international customer–supplier relationships through IT resources: A study of Taiwanese electronics suppliers," Journal of International Business Studies, Palgrave Macmillan, vol. 41(7), pages 1218-1239, September.
- Henry Wai-chung Yeung, 2009. "Regional Development and the Competitive Dynamics of Global Production Networks: An East Asian Perspective," Regional Studies, Taylor & Francis Journals, vol. 43(3), pages 325-351.
- Luo, Yadong, 2007. "A coopetition perspective of global competition," Journal of World Business, Elsevier, vol. 42(2), pages 129-144, June.
- Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 467-495, September.
- Chuan-Kai Lee & Annalee Saxenian, 2008. "Coevolution and coordination: a systemic analysis of the Taiwanese information technology industry," Journal of Economic Geography, Oxford University Press, vol. 8(2), pages 157-180, March.
- Kendall Roth & Allen J Morrison, 1990. "An Empirical Analysis of the Integration-Responsiveness Framework in Global Industries," Journal of International Business Studies, Palgrave Macmillan, vol. 21(4), pages 541-564, December.
- Y Luo, 2003. "Market-seeking MNEs in an emerging market: How parent–subsidiary links shape overseas success," Journal of International Business Studies, Palgrave Macmillan, vol. 34(3), pages 290-309, May.
- Benjamin M Oviatt & Patricia Phillips McDougall, 1994. "Toward a Theory of International New ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 25(1), pages 45-64, March.
- Jeffrey E. Johnson, 2004. "Factors Influencing the Early Internationalization of High Technology Start-ups: US and UK Evidence," Journal of International Entrepreneurship, Springer, vol. 2(1_2), pages 139-154, 03.
- Chih-Hai Yang & Jong-Rong Chen & Wen-Bin Chuang, 2004. "Technology and Export Decision," Small Business Economics, Springer, vol. 22(5), pages 349-364, 06.
- Jonathan Brookfield & Ren-Jye Liu, 2005. "The Internationalization of a Production Network and the Replication Dilemma: Building Supplier Networks in Mainland China," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 355-380, December.
- Shin-Horng Chen, 2002. "Global Production Networks and Information Technology: The Case of Taiwan," Industry and Innovation, Taylor & Francis Journals, vol. 9(3), pages 249-265.
- Ikujiro Nonaka & Ryoko Toyama, 2005. "The theory of the knowledge-creating firm: subjectivity, objectivity and synthesis," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 419-436, June.
- Chih-Hai Yang & Chia-Hui Huang, 2005. "R&D, Size and Firm Growth in Taiwan‘s Electronics Industry," Small Business Economics, Springer, vol. 25(5), pages 477-487, December.
- Luo, Yadong, 2000. "Dynamic capabilities in international expansion," Journal of World Business, Elsevier, vol. 35(4), pages 355-378, January.
- Julius H Johnson, 1995. "An Empirical Analysis of the Integration-Responsiveness Framework: U.S. Construction Equipment Industry Firms in Global Competition," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 621-635, September.
- Anne-Wil Harzing, 2000. "An Empirical Analysis and Extension of the Bartlett and Ghoshal Typology of Multinational Companies," Journal of International Business Studies, Palgrave Macmillan, vol. 31(1), pages 101-120, March.
- Ramamurti, Ravi & Doh, Jonathan P., 2004. "Rethinking foreign infrastructure investment in developing countries," Journal of World Business, Elsevier, vol. 39(2), pages 151-167, May.
- Benjamin M. Oviatt & Alan D. Bauerschmidt, 1991. "Business Risk and Return: A Test of Simultaneous Relationships," Management Science, INFORMS, vol. 37(11), pages 1405-1423, November.
- Heinz Hollenstein, 2005. "Determinants of International Activities: Are SMEs Different?," Small Business Economics, Springer, vol. 24(5), pages 431-450, 06.
- Luo, Yadong, 2009. "Are we on the same page?: Justice agreement in international joint ventures," Journal of World Business, Elsevier, vol. 44(4), pages 383-396, October.
- Sunil Venaik & David F Midgley & Timothy M Devinney, 2005. "Dual paths to performance: the impact of global pressures on MNC subsidiary conduct and performance," Journal of International Business Studies, Palgrave Macmillan, vol. 36(6), pages 655-675, November.
- Stephen J Kobrin, 1994. "Is There a Relationships Between a Geocentric Mind-Set and Multinational Strategy?," Journal of International Business Studies, Palgrave Macmillan, vol. 25(3), pages 493-511, September.
- Yu-Ching Chiao & Kuo-Pin Yang & Chwo-Ming Yu, 2006. "Performance, Internationalization, and Firm-specific Advantages of SMEs in a Newly-Industrialized Economy," Small Business Economics, Springer, vol. 26(5), pages 475-492, 06.
When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:48:y:2013:i:1:p:47-57. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.