Complexity in a multinational enterprise’s global supply chain and its international business performance: A bane or a boon?

Sharma, A and Kumar, V and Borah, S B and Adhikary, A (2022) Complexity in a multinational enterprise’s global supply chain and its international business performance: A bane or a boon? Journal of International Business Studies. ISSN 0047-2506

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Abstract

The literature on marketing, operations management, and strategy has investigated the impacts of a firm’s supplier network structure and complexity on its financial, environmental, and innovation performance. However, our understanding of how the global supply chain complexities of a multinational enterprise (MNE) affect its international business performance (IBP) is limited. We draw on both the business network theory and information search literature to propose that the various complexity dimensions (e.g., horizontal, vertical, and spatial) of an MNE’s global supply chain have different influences on its subsequent IBP. We argue – and empirically validate – that collaboration, a network orchestration mechanism, enables an MNE to leverage the benefits of complex relationships. Using a dataset of 185 firms taken from multiple industries over 6 years, we show how such complexities have differential effects. In multiple post hoc analyses, we demonstrate how an MNE’s marketing intensity, the interconnectedness among its supply members, and its top management team (TMT)’s international experience all have unique impacts. This study contributes to the existing literature on global supply chain complexity by demonstrating how it can influence MNEs’ IBP. Moreover, we contribute to the strategic IBP literature by outlining effective global supply chain improvement strategies.

Affiliation: Indian School of Business
ISB Creiators:
ISB Creators
ORCiD
Kumar, V
UNSPECIFIED
Item Type: Article
Uncontrolled Keywords: Complexity, Global Supply Chain, Supply Base Collaboration, Disintermediation international business performance
Subjects: Marketing
Operations Management > Supply Chain Management
Depositing User: Gurusrinivasan K
Date Deposited: 02 May 2022 04:53
Last Modified: 02 May 2022 04:53
URI: https://eprints.exchange.isb.edu/id/eprint/1627
Publisher URL: https://link.springer.com/article/10.1057/s41267-0...
Publisher OA policy: https://v2.sherpa.ac.uk/id/publication/8340
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