In order to enhance local suppliers’ responsiveness in global supply chain relationships, MNEs must work with their local suppliers to create new forms of relationship structures. Cultural and country differences may limit the use and effectiveness of traditional tools that govern the relationships between MNE and their local suppliers.
Drawing on the resource-based view and transaction cost economics, this study uses 219 Taiwanese electronics suppliers to examine the influence of information technology integration and trust on supply chain responsiveness in varied cultural distance conditions. We find that the process is mediated by a governance mechanism including cooperativeness efforts and MNEs control.
This study demonstrates that the use of IT integration through B2B information technology and trust can help MNEs to enhance local suppliers’ responsiveness in global supply chain relationships.