Drivers of Virtual Interfirm Integration and Its Impact on Performance in International Customer–Supplier Relationships

Daekwan Kim, Ruey-Jer Bryan Jean and Rudolf Sinkovics ()
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Daekwan Kim: Florida State University
Ruey-Jer Bryan Jean: National Chengchi University

Management International Review, 2018, vol. 58, issue 3, No 6, 495-522

Abstract: Abstract Consensus exists suggesting that advances in information and communication technologies are a major driver in restructuring Multinational Enterprises (MNEs) and their cross-border supply chain activities. However, the role of virtual interfirm integration and its antecedents, contingency conditions and its association with performance in international exchange relationship is not clearly specified. This study proposes that virtual interfirm integration can serve as an alternative governance mechanism for suppliers. Thus, we examine its drivers, moderators, and performance outcomes in international exchange relationships in the context of suppliers and their MNE customers. The empirical context is a study of 240 Taiwanese-based electronics equipment manufacturers. We explore the effect of communication culture, internal, inter-organizational, and environmental dimensions on virtual interfirm integration, and supplier performance in international exchange. We conclude by sharing our findings on the pertinence of virtual interfirm integration in the supplier–MNE buyer relationships.

Keywords: Information technology (IT); Global supply chain; Virtual integration; Multinational enterprise (MNE); Communication culture; Buyer–supplier relationship (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s11575-018-0344-4

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