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

Janet Y. Murray*, Masaaki Kotabe, Joe Nan Zhou

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

156 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)187-208
Number of pages22
JournalJournal of International Business Studies
Volume36
Issue number2
DOIs
Publication statusPublished - 2005 Mar
Externally publishedYes

Keywords

  • China
  • Foreign firms
  • Sourcing
  • Strategic alliance

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

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