The interaction between supply networks and internal networks: performance implications

Purpose The importance of the supply network to firm performance is well documented. Until now, and its suppliers have been conceptualized as single entities. Yet, multinational corporations (MNCs) are composed a complex, geographically dispersed internal subsidiaries. networks inherently linked. purpose this study investigate impact interaction these on firm-level financial performance. Design/methodology/approach Building network, dual embeddedness research, authors using data from FactSet Orbis. We assess at MNC level, measures performance, physical proximity between two geographic dispersion network. Findings results show that effect with negatively moderated by firm's This can be traced back diminishing marginal profitability assets. Moreover, benefits individual subsidiary come cost due operational challenges managing complex Research limitations/implications first MNCs simultaneously. Originality/value paper extends literature considering focal suppliers. one studies offer an understanding