Coordination Mechanisms and Overseas Knowledge Acquisition for Chinese Suppliers: The Contingent Impact of Production Mode and Contractual Governance

Lei Wang, Dong Huo and Kazuyuki Motohashi

Journal of International Management, 2019, vol. 25, issue 2, -

Abstract: This article examines how production mode and contractual governance moderate the effects of two distinct interfirm coordination mechanisms on overseas knowledge acquisition for suppliers in offshore cooperation. An investigation of 204 offshore suppliers in China finds that the positive effect of technology-based coordination mechanism (TCM) on overseas knowledge acquisition for an original equipment manufacturing (OEM) supplier is stronger than that for an original design manufacturing (ODM) supplier. By contrast, the positive effect of personal coordination mechanism (PCM) on overseas knowledge acquisition for an ODM supplier is stronger than that for an OEM supplier. Besides, as the degree of contractual control grows, the positive effect of TCM on overseas knowledge acquisition becomes stronger, whereas the positive effect of PCM becomes weaker. Further, when considering coordination, production, and governance jointly, we find that the strengthening effect of contractual control on the influence of TCM for OEM is stronger than that for ODM, and that the weakening effect of contractual control on the influence of PCM for ODM is stronger than that for OEM.

Keywords: Overseas knowledge acquisition; Technology-based coordination mechanism; Personal coordination mechanism; Production mode; Contractual governance; Offshore cooperation; Global value chain governance (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.intman.2018.10.003

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