The role of virtual integration, commitment, and knowledge-sharing in improving international supplier responsiveness

In order to enhance local suppliers’ responsiveness in international exchange relationships, international MNE customers must work with their local suppliers to create new form of relationship structures. Cultural and country differences may limit the use and effectiveness of traditional relationship governance tools between the international MNE customers and their local suppliers. Drawing on the resource-based view and transaction cost economics, this study uses 219 electronics suppliers from Taiwan to examine the influence of virtual integration, knowledge sharing and commitment on their responsiveness in international exchange relationships. The findings demonstrate that the use of plural forms of governance can enhance interorganizational value creation in terms of supplier responsiveness in international exchange relationships. Implications for academics and practitioners are addressed.