Abstract
PurposeThe purpose of this paper is to engage in a comprehensive review of the research on information technology (IT)-mediated international market-entry alliances.Design/methodology/approachThis paper provides a theory-informed conceptual framework of IT-enabled cross-border interfirm relationships and performance outcomes. It integrates perspectives of resource-based view (RBV) and transaction cost economics (TCE) to argue that the establishment of interfirm IT capabilities enhances the marketing performance of the foreign partner in the host location by improving interfirm relationship governance. Furthermore, IT-related risks and contextual restrictions are identified as important moderators.FindingsConceptualisations of IT capabilities, IT-enhanced interfirm governance, and IT-led marketing performance improvement are suggested. Drawing on RBV and TCE, IT resources, related human resources, and IT integration between partner firms in combination enhances the ability of firms to manage the relationship more effectively through shared control, interfirm coordination, cross-firm formalisation, and hybrid centralisation. These benefits then bring about better upstream and downstream marketing performance in the host location. Additionally, IT capabilities help to mitigate possible contextual limitations and risks.Research limitations/implicationsThe paper offers a number of theory- and literature-informed research propositions which can be empirically tested in future studies.Practical implicationsTop managers of firms currently in or planning to enter international alliances for market entry should carefully consider effective development of interfirm IT capabilities in terms of readiness of hardware and software, human resources, and organisational resources.Originality/valueThe paper provides an integrated framework and propositions which contribute to limited understanding and appreciation of IT value in international market-entry alliances.
Highlights
Positive marketing performance in the host location is considered crucial for foreign investor firms
We suggest that Information Technology (IT) capabilities, in the context of interfirm alliance for market entry, can improve foreign firm performance by enhancing upstream and downstream marketing outcomes
28 seeking and resource leverage (Baumol, 2001), in the context of interfirm alliance for market entry, we would expect both vertical horizontal coordination to be favourable for foreign firms as the former brings about upstream or downstream value creation through collaboration with local partners and the latter brings about synergy in product or process innovation and market performance
Summary
During the past two decades, the international business sphere has witnessed dramatically. This paper aims to address the important question of whether and how IT contributes to interfirm marketing performance through international market-entry alliance. Against this background, our main objective is to develop a theory-informed integrated conceptual framework to comprehend the impact of IT on interfirm relationship and marketing performance based on cross-border alliances and IT research. A link between RBV and TCE is established and underpins the framework An interaction between these two theoretical perspective helps to form the central proposition that IT resources lead 19 to enhanced marketing performance through improving interfirm governance. Overview of IT in International Market-entry Alliance and Marketing Performance
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