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This study aims to explore the effects of subsidiary–local supplier linkage characteristics in a supply chain and the moderating effects of a multinational corporation’s (MNC’s) international experience (IE) and a subsidiary’s innovation orientation (IO) on the subsidiary’s technological capability.

A new research framework is developed comprising four constructs and six research hypotheses. Applying the regression model, the hypotheses were tested on data from Taiwanese MNC’s subsidiaries of manufacturing industries in Asian developing countries.

The subsidiary–local supplier linkage characteristics, including economic aspect: asset-specific investment (ASI) of local supplier and social aspect: relational capital (RC) of local linkage, are positively associated with subsidiary’s technological capability. Moreover, the MNC’s IE can enhance the positive effect of RC on the subsidiary’s technological capability and the subsidiary’s IO decreases the positive impact of ASI on the subsidiary’s technological capability.

This study provides useful insights into how MNCs and subsidiaries should concentrate on the factors that increase the subsidiary’s technological capability. Moreover, MNCs’ and subsidiaries’ managers must endeavor to establish long-term linkages with carefully selected local suppliers, induce these suppliers to provide appropriate ASI, and actively develop RC in the subsidiary–local supplier linkage to enhance the subsidiary’s technological capability.

This study demonstrates that subsidiary–local supplier linkage characteristics, MNC’s IE and subsidiary’s IO can be applied to examine the technological capability of subsidiaries operating in less advanced countries.

This paper aims to propose an integrated model based on buyer and supplier opportunism to show the mechanism through which current and competing suppliers influence buyer market competitiveness.

Questionnaires were distributed to purchasing staff in listed electronics firms in Taiwan to collect empirical data. Structural equation modeling was used to analyze these data and examine the fitness of the proposed model.

The findings show that current and competing suppliers influence buyer market competitiveness through supplier opportunistic behaviors and buyer commitment. The alternative attractiveness of competing suppliers affects buyer market competitiveness through the influence of asset specificity. Supplier opportunism negatively and indirectly influences buyer market competitiveness through buyer commitment. Nevertheless, buyer opportunism does not influence buyer commitment and market competitiveness.

The investigation focused on only one industry in one country. Future research could investigate other industries and countries to increase the generalizability of the findings.

The results suggest that buyers can focus on utilizing the pressure of alternative suppliers to improve market competitiveness through increased specific investments by the current supplier.

On the basis of buyer–supplier opportunism, this study shows the mechanism through which the asset specificity of current suppliers and alternative attractiveness influence buyer market competitiveness.

The purpose of this research is to investigate the causal mechanisms that explain the relationship between the long-term buyer–supplier relationship and buyer performance. Building on the growing body of research on social capital in supply chain management (SCM), the authors examine how a buyer achieves superior performance in forming the enduring partnership with a supplier through two different forms of supplier embeddedness: buyer–supplier dyadic embeddedness and supplier external embeddedness.

The bootstrapping method is utilized in data analysis to examine the mediating effects of the two different forms of supplier embeddedness simultaneously on the linkage between the duration of buyer–supplier relationships and buyer performance outcomes.

The authors find that the two forms of supplier embeddedness serve as distinct conduits for the buyer to translate the long-term buyer–supplier relationship into performance effectiveness. Notably, dyadic embeddedness only mediates the linkage between the duration of buyer–supplier relationships and buyer economic performance, while supplier external embeddedness solely mediates the linkage between the duration of buyer–supplier relationships and buyer innovation performance.

This study empirically demonstrates that different forms of supplier embeddedness may benefit a buyer differentially when directed at distinct performance goals. If a buyer can leverage both buyer–supplier dyadic embeddedness and supplier external embeddedness, the buyer will overcome value creation limitations of social capital from a single source, obtaining more comprehensive performance benefits sought by developing long-term buyer–supplier relationships.

The purpose of this chapter is to develop a framework that can be used to study the impact of multinational enterprises (MNEs) on sustainable development and poverty alleviation in developing countries. In the 3-year project awarded by the EC-FP7 program, six universities from Europe and three partners from developing countries participated: Brazil, Ghana, and India. For this purpose, a thorough literature review is done and a framework is presented. To confirm the conceptual framework, we performed several case studies with three MNEs in two countries, Ghana and India. Data collection was done through qualitative in-depth interviews with managers in the headquarters of MNEs, the subsidiaries, and the “linked” local firms and host governments. Results confirm our conceptual model that the autonomy of the subsidiary, strategies of MNEs, and local government policies play a major role in achieving positive externalities from MNE operations in developing countries. The key contribution of this study is the development of a relevant conceptual framework that can be used in the overall project. Our study confirms that an interaction between the MNE subsidiary and the local government is essential for the linkages and spillovers to occur that may benefit local economic development and poverty reduction in developing countries.

The innovation orientation theory has emerged within the literature in the last 40 years particular within the development of other strategic orientations, but the bulk of seminal literature in the area has been developed in the past 11 years. The purpose of this paper is to revisit the concept innovation orientation in the light of recent research.

This paper presents a systematic review of this literature, covering 74 scholarly articles published between 1982 and 2017.

Innovation orientation is a sub-construct positioned within the wider field of innovation and relates to an innovation-based strategic orientation, where orientation is used to describe the overall dominant approach that represents an organisation’s competitive posture and strategic focus. It is a multifaceted construct that includes a range of core common variables innovation culture, competition-based understanding, organisational flexibility and specific capital and knowledge capabilities and is particular relevant for that managers and executives to understand how to manage innovation at the firm level. Literature also reports links between innovation orientation and organisational performance.

On the basis of these analyses, a comprehensive innovation orientation framework is developed including key antecedents and key outcomes in terms of performance enhancement and capabilities development. Suggestions for future research are also presented.

Innovation has become extremely important, especially concerning manufacturing firms, as it is known to foster robust and healthy competition. The study aims to examine the effect of innovation orientation and supply chain integration on structural flexibility and strategic business performance.

Using the quantitative approach, 315 questionnaires were distributed to manufacturing firms in three cities (Accra, Kumasi and Takoradi) in Ghana out of which 305 usable responses were retrieved. The partial least square structural equation modeling technique and the statistical package for social sciences software version 27 were used for the data analysis.

The findings showed that supply chain integration and innovation orientation have a strong beneficial association. A substantial favorable association between structural flexibility and supply chain integration was found in the study once more. What is more, the research revealed a strong positive relationship between supply chain integration and strategic business performance. Furthermore, the study found a strong relation between innovation orientation and strategic business performance.

The research paper adds to the body of knowledge by examining how supply chain integration affects the relationship between innovation orientation, structural flexibility and strategic business performance.

Local sourcing from indigenous firms by multinational enterprises (MNEs) is an important channel through which the former may benefit from the positive externalities generated by the latter. The purpose of this study is to analyze the extent and determinants of local sourcing of MNEs.

Employing a survey dataset covering 493 multinational subsidiaries in China during 1999‐2005, this paper applies the two‐limit Tobit model.

It is found that an MNE's local sourcing decision is influenced by its strategies, characteristics such as size and learning ability and country‐of‐origin. More specifically, export‐orientation strategy, joint venture strategy and networking with local suppliers positively affect local sourcing. Small and autonomous subsidiaries tend to source more locally. Age has a non‐linear effect. The importance of these determinants varies with regions.

Aiming at capacity building and competitiveness of indigenous firms, the Chinese government has initiated local content requirement. This study shows that such policy intervention could be counterproductive. The creation of a more competitive business environment by the government could promote more linkages.

Given its critical role in economic development, local sourcing by MNEs has attracted much attention. Only limited research has been carried out on FDI linkage effects in China, and the location effect on FDI linkages has not been examined. This study aims to fill the gap by using Chinese survey data.

Purpose – This study explores subsidiaries' local network embeddedness and how it contributes to localised subsidiary innovation output from a social network perspective. In particular, we are interested in analysing the consequences of local network density, diversity and, subsidiaries' network position on its innovation outcomes.

Design/methodology/approach – Data are derived from a longitudinal quantitative study of the entire R&D network within one of the largest life science cluster in Germany, the ‘BioRegion Rhein-Neckar-Dreieck’.

Findings – Our findings indicate that the size (density) of the local network has an inverted U-shaped effect on the innovation outcomes of MNC subsidiaries. Our findings further indicate that a strong brokerage position in the local network has a significant positive influence on the innovation output while a position in the core of the network has a significant negative effect on the innovation output.

Research implications – Our results shed new light on the relationship between local embeddedness, brokerage, the danger of overembeddedness and innovation output of MNC subsidiaries.

Two of the most pervasive trends in purchasing management during the 1980s were the increased usage of global sourcing and the development of JIT sourcing. Both practices have become quite popular because of the significant competitive benefits they provide to the firms that successfully implement them. Despite their increasingly widespread adoption, these two sourcing strategies have traditionally been viewed as incompatible; therefore, most firms have not sought to integrate them in their efforts to enhance competitive position. Explores the potential of using logistics to facilitate the concurrent usage of global and JIT sourcing. Combines a conceptual discussion with an empirical study to understand better the opportunities to develop integrated global/JIT materials.