Determinants of intra-firm sourcing and market performance

Masaaki Kotabe*, Janet Y. Murray

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)

Abstract

Earlier studies have shown that internal sourcing of major components has a direct bearing on the multinational firm's market performance. However, factors that affect the extent to which the firm employs intra-firm (internal) sourcing have not been explored. In this study, we examine the determinants of internal sourcing of major components, and revisit the relationship between internal sourcing of major components and market performance. Our results show that process innovation, asset specificity, management's attitude, nationality, and availability of substitute components strongly affect the degree of internal sourcing of major components that subsequently has a bearing on a product's market performance.

Original languageEnglish
Pages (from-to)121-135
Number of pages15
JournalInternational Business Review
Volume5
Issue number2
DOIs
Publication statusPublished - 1996 Apr
Externally publishedYes

Keywords

  • Competitiveness
  • Global competition
  • International procurement
  • Market performance
  • Sourcing

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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