Determinants of intra-firm sourcing by multinationals in China

Based on literature review, the determinants of intra-firm sourcing are analyzed, and 14 hypotheses are put forward. 109 companies are surveyed and efficient data is analyzed using logistic regression method. The results from our survey show that asset specificity have significantly positive influence on the extent of internal sourcing; the use of internal sourcing is mostly influenced by entry mode in firm-related factors; some location-related variables, such as policies, China´s attractiveness as a market and potential of supply market have significantly negative influence on the extent of internal sourcing; other factors are not notable. And the result is explained at last.