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Strategic alliance-based sourcing and market performance: evidence from foreign firms operating in China

Author

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  • Janet Y Murray

    (St. Louis University, John Cook School of Business, Boeing Institute of International Business, St. Louis, MO, USA)

  • Masaaki Kotabe

    (Temple University, The Fox School of Business & Management, The Institute of Global Management Studies, Philadelphia, PA, USA)

  • Joe Nan Zhou

    (Department of Marketing, City University of Hong Kong, Kowloon, Hong Kong)

Abstract

Although foreign multinational firms from the Triad regions increasingly use mainland China as both a sourcing and a marketing location, no study has directly examined the sourcing strategy–performance linkage. Using resource complementarity and resource dependence theory, we extend the sourcing literature and apply these perspectives to an important transitional economy—China. These two theoretical perspectives suggest that product and uncertainty factors moderate the relationship between strategic alliance-based sourcing (SA sourcing) of major components and market performance. We find that, at low levels of product innovativeness and technological uncertainty, the use of SA sourcing is positively related to market performance. However, the effects of product differentiation and demand uncertainty on the sourcing–performance relationship are insignificant. Journal of International Business Studies (2005) 36, 187–208. doi:10.1057/palgrave.jibs.8400120

Suggested Citation

  • Janet Y Murray & Masaaki Kotabe & Joe Nan Zhou, 2005. "Strategic alliance-based sourcing and market performance: evidence from foreign firms operating in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 187-208, March.
  • Handle: RePEc:pal:jintbs:v:36:y:2005:i:2:p:187-208
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    Cited by:

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    2. Buckley, Peter J. & Cross, Adam & De Mattos, Claudio, 2015. "The principle of congruity in the analysis of international business cooperation," International Business Review, Elsevier, vol. 24(6), pages 1048-1060.
    3. Fawcett, Stanley E. & Magnan, Gregory M. & McCarter, Matthew W., 2005. "Supply Chain Alliances: Rhetoric and Reality," Working Papers 05-0116, University of Illinois at Urbana-Champaign, College of Business.
    4. Giroud, Axèle & Scott-Kennel, Joanna, 2009. "MNE linkages in international business: A framework for analysis," International Business Review, Elsevier, vol. 18(6), pages 555-566, December.
    5. repec:eee:joreco:v:39:y:2017:i:c:p:208-218 is not listed on IDEAS
    6. Rudd, John M. & Greenley, Gordon E. & Beatson, Amanda T. & Lings, Ian N., 2008. "Strategic planning and performance: Extending the debate," Journal of Business Research, Elsevier, vol. 61(2), pages 99-108, February.
    7. BOEHE, Dirk Michael, 2009. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Insper Working Papers wpe_186, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    8. repec:eee:joreco:v:31:y:2016:i:c:p:1-13 is not listed on IDEAS
    9. Bo Bernhard Nielsen & Sabina Nielsen, 2009. "Learning and Innovation in International Strategic Alliances: An Empirical Test of the Role of Trust and Tacitness," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 1031-1056, September.
    10. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Do foreign resources assist or impede internationalisation? Evidence from internationalisation of Indian multinational enterprises," International Business Review, Elsevier, vol. 25(1), pages 130-140.
    11. Achareeya Nawan & Patarapong Intarakumnerd, 2013. "Interaction between Host Countries’ Innovation Systems and Investment Strategies of Transnational Corporations: A Case Study of a US-based Conglomerate," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(2), pages 131-154, July.
    12. Kedia, Ben L. & Lahiri, Somnath, 2007. "International outsourcing of services: A partnership model," Journal of International Management, Elsevier, vol. 13(1), pages 22-37, March.
    13. repec:gam:jsusta:v:8:y:2016:i:4:p:327:d:67373 is not listed on IDEAS
    14. Chris Changwha Chung & Simon Shufeng Xiao & Jeoung Yul Lee & Jingoo Kang, 2016. "The Interplay of Top-down Institutional Pressures and Bottom-up Responses of Transition Economy Firms on FDI Entry Mode Choices," Management International Review, Springer, vol. 56(5), pages 699-732, October.
    15. 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.
    16. Chan, Tysun & Gountas, Sandra & Zhang, Luyuan & Handley, Brian, 2016. "Western firms' successful and unsuccessful business models in China," Journal of Business Research, Elsevier, vol. 69(10), pages 4150-4160.
    17. Karjalainen, Katri & Salmi, Asta, 2013. "Continental differences in purchasing strategies and tools," International Business Review, Elsevier, vol. 22(1), pages 112-125.
    18. Nemeth, Alexander, 2012. "A framework of international joint ventures exit: A resource dependence and learning perspective," Freiberg Working Papers 2012,02, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    19. Suparak Suriyankietkaew & Gayle Avery, 2016. "Sustainable Leadership Practices Driving Financial Performance: Empirical Evidence from Thai SMEs," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-14, April.
    20. He, Qile & Ghobadian, Abby & Gallear, David, 2013. "Knowledge acquisition in supply chain partnerships: The role of power," International Journal of Production Economics, Elsevier, vol. 141(2), pages 605-618.
    21. Zhang, Junfeng & Wu, Wei-ping, 2013. "Social capital and new product development outcomes: The mediating role of sensing capability in Chinese high-tech firms," Journal of World Business, Elsevier, vol. 48(4), pages 539-548.
    22. Zhang, Jing & Pezeshkan, Amir, 2016. "Host country network, industry experience, and international alliance formation: Evidence from the venture capital industry," Journal of World Business, Elsevier, vol. 51(2), pages 264-277.
    23. Lee, Jin Kyun & Lee, Byung-Kwan & Lee, Wei-Na, 2013. "Country-of-origin fit's effect on consumer product evaluation in cross-border strategic brand alliance," Journal of Business Research, Elsevier, vol. 66(3), pages 354-363.

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