Concurrent sourcing strategy of multinational firms in China: Drivers and performance implications

Min Ju*, Janet Y. Murray, Gerald Yong Gao, Masaaki Kotabe

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

Concurrent sourcing is critical to multinational firms’ operations in emerging economies, such as China. Despite its prominence, research is lacking on the underlying conditions and performance implications of this strategy. We investigate the driving factors of multinational firms’ concurrent sourcing strategy and test whether concurrent sourcing outperforms other types of sourcing strategies. Our empirical findings suggest that multinational firms tend to choose concurrent sourcing under high levels of institutional regulations. Furthermore, the results show that concurrent sourcing generates better performance at high levels of uncertainties and the performance deficiency of concurrent sourcing can be mitigated when institutional regulations are high.

Original languageEnglish
Article number101015
JournalJournal of World Business
Volume54
Issue number6
DOIs
Publication statusPublished - 2019 Dec
Externally publishedYes

Keywords

  • Concurrent sourcing
  • Demand uncertainty
  • Insourcing
  • Institutional regulations
  • Performance
  • Strategic alliance-based sourcing

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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