Top management support, inter-organizational relationships and external involvement
Abstract
Purpose
The purpose of this paper is to examine the effects of top management support (TMS) and inter-organizational relationships (IORs) on external involvement (EI), and their differences across different ownerships.
Design/methodology/approach
To test the research hypotheses, structural equation modeling was conducted using data from 176 Chinese manufacturing firms.
Findings
TMS enhances relationship with customers and relationship with suppliers. Relationship with customers increases the degree of customer involvement, while relationship with suppliers increases the degree of supplier involvement. In addition, TMS improves customer involvement while does not improve supplier involvement directly. A further analysis reveals that the relationship between TMS and supplier involvement is partially mediated by relationship with suppliers in Chinese-controlled firms, whereas it is completely mediated by relationship with suppliers in foreign-controlled firms. Moreover, the effect of relationship with suppliers on supplier involvement is stronger in foreign-controlled firms than in Chinese-controlled firms.
Research limitations/implications
This study employed perceptual data from a single respondent in each firm. In addition, the data used in this study were collected from one side of the dyad: the manufacturers.
Practical implications
Both Chinese-controlled and foreign-controlled firms should get support from top management and develop close relationship with customers and suppliers to improve EI.
Originality value
This study extends our knowledge in the field by examining how TMS and prior history of IORs can improve the degree of EI.
Keywords
Acknowledgements
The authors thank the Editor and the three anonymous referees. This research was partially supported by the Humanity and Social Science Youth foundation of Ministry of Education of China (No. 13YJC630031), National Natural Science Foundation of China (No. 71371154), the PhD Programs Foundation of Ministry of Education of China (No. 20136102120066) and the Humanities and Social Sciences and Management Promotion Fund of Northwestern Polytechnical University (No. RW201307).
Citation
Feng, T. and Zhao, G. (2014), "Top management support, inter-organizational relationships and external involvement", Industrial Management & Data Systems, Vol. 114 No. 4, pp. 526-549. https://doi.org/10.1108/IMDS-03-2013-0127
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited