As global responsiveness (GR) has been recognised as critical for global market advantage, we draw upon social capital theory and develop a theoretical model which clarifies the determinants and consequences of GR. Based upon a cross-national sample of 118 MNCs from the U.S., Europe, and Asia, we found that intra-firm structural and inter-firm relational social capital, as reflected in integrative mechanisms and joint problem solving respectively, are positively associated with GR. In addition, whilst negatively related to global sourcing barriers, GR has a positive effect on MNC performance. Our findings also indicate that GR plays an essential role by fully mediating the associations of information-based mechanisms, people-based mechanisms, and joint problem solving with global sourcing barriers and MNC performance.
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