IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v126y2019icp212-226.html
   My bibliography  Save this article

Governing local sourcing practices of overseas projects for the Belt and Road Initiative: A framework and evaluation

Author

Listed:
  • Li, Ying
  • Shou, Yongyi
  • Ding, Ronggui
  • Sun, Tao
  • Zhou, Qing

Abstract

A unified framework is proposed to investigate the ex-post factors of local sourcing practices in overseas projects for the Belt and Road Initiative, which includes twelve governance factors in four dimensions, i.e., coordinated adaptation, control and safeguarding, incentives and payment structure, and policies and regulations. A fuzzy Decision Making Trial and Evaluation Laboratory (DEMATEL) approach is applied to evaluate the inter-relationships among the factors. The results indicate that relational governance mechanisms such as trust building play a prominent role in implementing local sourcing practices while formal governance mechanisms such as country-level policies and regulations are the precondition for relational mechanisms.

Suggested Citation

  • Li, Ying & Shou, Yongyi & Ding, Ronggui & Sun, Tao & Zhou, Qing, 2019. "Governing local sourcing practices of overseas projects for the Belt and Road Initiative: A framework and evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 212-226.
    • Handle: RePEc:eee:transe:v:126:y:2019:i:c:p:212-226
    DOI: 10.1016/j.tre.2019.04.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554518314868
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2019.04.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Teka, Zeferino, 2012. "Linkages to manufacturing in the resource sector: The case of the Angolan oil and gas industry," Resources Policy, Elsevier, vol. 37(4), pages 461-467.
    2. Kusi-Sarpong, Simonov & Sarkis, Joseph & Wang, Xuping, 2016. "Assessing green supply chain practices in the Ghanaian mining industry: A framework and evaluation," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 325-341.
    3. Jordaan, Jacob A., 2011. "FDI, Local Sourcing, and Supportive Linkages with Domestic Suppliers: The Case of Monterrey, Mexico," World Development, Elsevier, vol. 39(4), pages 620-632, April.
    4. Liu, Xiaotong & Zhang, Kai & Chen, Bokui & Zhou, Jun & Miao, Lixin, 2018. "Analysis of logistics service supply chain for the One Belt and One Road initiative of China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 23-39.
    5. Govindan, Kannan & Chaudhuri, Atanu, 2016. "Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 177-195.
    6. Mayer, Kyle J. & Teece, David J., 2008. "Unpacking strategic alliances: The structure and purpose of alliance versus supplier relationships," Journal of Economic Behavior & Organization, Elsevier, vol. 66(1), pages 106-127, April.
    7. Glenn Hoetker & Thomas Mellewigt, 2009. "Choice and performance of governance mechanisms: matching alliance governance to asset type," Strategic Management Journal, Wiley Blackwell, vol. 30(10), pages 1025-1044, October.
    8. Corkin, Lucy, 2012. "Chinese construction companies in Angola: A local linkages perspective," Resources Policy, Elsevier, vol. 37(4), pages 475-483.
    9. Anne Parmigiani & Miguel Rivera-Santos, 2011. "Clearing a Path Through the Forest : A Meta-Review of Interorganizational Relationships," Post-Print hal-02313129, HAL.
    10. Tain-Jy Chen & Homin Chen & Ying-Hua Ku, 2004. "Foreign direct investment and local linkages," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 320-333, July.
    11. Marcela Miozzo & Mo Yamin & Pervez N. Ghauri, 2012. "Strategy and structure of service multinationals and their impact on linkages with local firms," The Service Industries Journal, Taylor & Francis Journals, vol. 32(7), pages 1171-1191, January.
    12. Ha, Min-Ho & Yang, Zaili & Notteboom, Theo & Ng, Adolf K.Y. & Heo, Man-Wook, 2017. "Revisiting port performance measurement: A hybrid multi-stakeholder framework for the modelling of port performance indicators," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 1-16.
    13. Cheng, Leonard K., 2016. "Three questions on China's “Belt and Road Initiative”," China Economic Review, Elsevier, vol. 40(C), pages 309-313.
    14. Fryxell, Gerald E. & Butler, John & Choi, Amanda, 2004. "Successful localization programs in China: an important element in strategy implementation," Journal of World Business, Elsevier, vol. 39(3), pages 268-282, August.
    15. Shi Chen & Hau Lee, 2017. "Incentive Alignment and Coordination of Project Supply Chains," Management Science, INFORMS, vol. 63(4), pages 1011-1025, April.
    16. Holweg, Matthias & Reichhart, Andreas & Hong, Eui, 2011. "On risk and cost in global sourcing," International Journal of Production Economics, Elsevier, vol. 131(1), pages 333-341, May.
    17. Choi, Tsan-Ming, 2013. "Local sourcing and fashion quick response system: The impacts of carbon footprint tax," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 55(C), pages 43-54.
    18. Osabutey, Ellis L.C. & Williams, Karen & Debrah, Yaw A., 2014. "The potential for technology and knowledge transfers between foreign and local firms: A study of the construction industry in Ghana," Journal of World Business, Elsevier, vol. 49(4), pages 560-571.
    19. Yin, Zhe & Wang, Chen & Yin, Qian, 2018. "Coordinating overseas and local sourcing through a capacitated expediting transportation policy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 258-271.
    20. Huang, Yiping, 2016. "Understanding China's Belt & Road Initiative: Motivation, framework and assessment," China Economic Review, Elsevier, vol. 40(C), pages 314-321.
    21. Chun-Sheng Joseph Li & Tser-Yieth Chen & Phil Yihsing Yang, 2016. "Local Embeddedness, Market Focus, and Productivity: Evidence of Taiwanese Manufacturing MNE Subsidiaries in China," Growth and Change, Wiley Blackwell, vol. 47(4), pages 596-611, December.
    22. Park, Woo-Yong & Ro, Young K. & Kim, Namwoon, 2018. "Architectural innovation and the emergence of a dominant design: The effects of strategic sourcing on performance," Research Policy, Elsevier, vol. 47(1), pages 326-341.
    23. Kenneth S Law & Lynda Jiwen Song & Chi-Sum Wong & Donghua Chen, 2009. "The antecedents and consequences of successful localization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1359-1373, October.
    24. Shao, Zeng-Zhen & Ma, Zu-Jun & Sheu, Jiuh-Biing & Gao, H. Oliver, 2018. "Evaluation of large-scale transnational high-speed railway construction priority in the belt and road region," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 40-57.
    25. Laura Poppo & Kevin Zheng Zhou & Todd R. Zenger, 2008. "Examining the Conditional Limits of Relational Governance: Specialized Assets, Performance Ambiguity, and Long‐Standing Ties," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1195-1216, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luthra, Sunil & Sharma, Manu & Kumar, Anil & Joshi, Sudhanshu & Collins, Eva & Mangla, Sachin, 2022. "Overcoming barriers to cross-sector collaboration in circular supply chain management: a multi-method approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    2. Hannes Thees, 2020. "Towards Local Sustainability of Mega Infrastructure: Reviewing Research on the New Silk Road," Sustainability, MDPI, vol. 12(24), pages 1-35, December.
    3. Yavas, Volkan & Ozkan-Ozen, Yesim Deniz, 2020. "Logistics centers in the new industrial era: A proposed framework for logistics center 4.0," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    4. Vafadarnikjoo, Amin & Tavana, Madjid & Chalvatzis, Konstantinos & Botelho, Tiago, 2022. "A socio-economic and environmental vulnerability assessment model with causal relationships in electric power supply chains," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    5. Lu, Yangsiyu & Springer, Cecilia & Steffen, Bjarne, 2024. "Cofinancing and infrastructure project outcomes in Chinese lending and overseas development finance," World Development, Elsevier, vol. 175(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad Ajmal Nikjow & Li Liang & Xijing Qi & Samad Sepasgozar, 2021. "Engineering Procurement Construction in the Context of Belt and Road Infrastructure Projects in West Asia: A SWOT Analysis," JRFM, MDPI, vol. 14(3), pages 1-17, February.
    2. Li, Chun-Sheng Joseph & Lee, Po-Yen & Liou, James J.H., 2018. "Exploring the staff localization of Taiwanese MNC subsidiaries in China: Effects of size, operation time, location, and local-market focus," Journal of Business Research, Elsevier, vol. 88(C), pages 20-27.
    3. Wen, Xin & Ma, Hoi-Lam & Choi, Tsan-Ming & Sheu, Jiuh-Biing, 2019. "Impacts of the Belt and Road Initiative on the China-Europe trading route selections," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 581-604.
    4. Mohammad Ajmal Nikjow & Li Liang & Xijing Qi & Samad M. E. Sepasgozar & Nicholas Chileshe, 2021. "Triggers of Delays in International Projects Using Engineering Procurement and Construction Delivery Methods in the Belt and Road Initiative: Case Study of a High-Speed Railway Projects," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    5. Sun, Jiasen & Li, Guo & Xu, Su Xiu & Dai, Wei, 2019. "Intermodal transportation service procurement with transaction costs under belt and road initiative," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 31-48.
    6. Jolink, Albert & Niesten, Eva, 2012. "Recent qualitative advances on hybrid organizations: Taking stock, looking ahead," Scandinavian Journal of Management, Elsevier, vol. 28(2), pages 149-161.
    7. Koffi Dumor & Li Yao, 2019. "Estimating China’s Trade with Its Partner Countries within the Belt and Road Initiative Using Neural Network Analysis," Sustainability, MDPI, vol. 11(5), pages 1-22, March.
    8. Jack Pegram & Gioia Falcone & Athanasios Kolios, 2019. "Quantitative and Qualitative Assessment of Job Role Localization in the Oil and Gas Industry: Global Experiences and National Differences," Energies, MDPI, vol. 12(6), pages 1-22, March.
    9. Liyuan Zhu & Nan Liu, 2023. "Game theoretic analysis of logistics service coordination in a live-streaming e-commerce system," Electronic Commerce Research, Springer, vol. 23(2), pages 1049-1087, June.
    10. Jack Pegram & Gioia Falcone & Athanasios Kolios, 2018. "A Review of Job Role Localization in the Oil and Gas Industry," Energies, MDPI, vol. 11(10), pages 1-18, October.
    11. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Environmental risks, localization and the overseas subsidiary performance of MNEs from an emerging economy," Journal of World Business, Elsevier, vol. 51(3), pages 356-368.
    12. Wei Yin, 2019. "Integrating Sustainable Development Goals into the Belt and Road Initiative: Would It Be a New Model for Green and Sustainable Investment?," Sustainability, MDPI, vol. 11(24), pages 1-22, December.
    13. Hitotsuyanagi-Hansel, Azusa & Froese, Fabian Jintae & Pak, Yong Suhk, 2016. "Lessening the divide in foreign subsidiaries: The influence of localization on the organizational commitment and turnover intention of host country nationals," International Business Review, Elsevier, vol. 25(2), pages 569-578.
    14. Mau, Karsten & Seuren, Rosalie, 2020. "One Belt, One Road, One Way?," Research Memorandum 024, Maastricht University, Graduate School of Business and Economics (GSBE).
    15. Peter J. Buckley, 2018. "Towards a theoretically-based global foreign direct investment policy regime," Journal of International Business Policy, Palgrave Macmillan, vol. 1(3), pages 184-207, December.
    16. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    17. Song, Sangcheol, 2020. "Actualization of growth potential in international joint ventures: The moderating effects of localization strategies," Journal of World Business, Elsevier, vol. 55(2).
    18. Choi, Tsan-Ming, 2020. "Internet based elastic logistics platforms for fashion quick response systems in the digital era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    19. Yu, Shu & Qian, Xingwang & Liu, Taoxiong, 2019. "Belt and road initiative and Chinese firms' outward foreign direct investment," Emerging Markets Review, Elsevier, vol. 41(C).
    20. Kuzmicz, Katarzyna Anna & Pesch, Erwin, 2019. "Approaches to empty container repositioning problems in the context of Eurasian intermodal transportation," Omega, Elsevier, vol. 85(C), pages 194-213.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:126:y:2019:i:c:p:212-226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.