Consumer animosity in the global value chain: The effect of international production shifts on willingness to purchase hybrid products

The escalation of international offshoring and outsourcing in recent years has resulted in a proliferation of "hybrid products" for the typical multinational enterprise, with multiple country affiliations for branding, design, manufacture, assembly and parts sourcing. However, little has b...

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Bibliographic Details
Published in:Journal of international business studies 2010-05, Vol.41 (4), p.639-651
Main Authors: Funk, Charles A, Arthurs, Jonathan D, Treviño, Len J, Joireman, Jeff
Format: Article
Language:English
Subjects:
Alliances
Business and Management
Business Strategy/Leadership
Consumer behavior
Consumer economics
Consumer goods
Consumer goods industries
Consumer psychology
Consumer research
Consumers
Ethnocentrism
Foreign investment
Global values
International Business
Management
Manufacturing
Marketing
Modeling
Multinational corporations
Organization
Product quality
Rule of origin
Studies
Value chain
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Summary:The escalation of international offshoring and outsourcing in recent years has resulted in a proliferation of "hybrid products" for the typical multinational enterprise, with multiple country affiliations for branding, design, manufacture, assembly and parts sourcing. However, little has been written regarding the impact of consumer animosity on such hybrid activities, or the role of universal values in a hybrid production animosity model. In this paper we extend the consumer animosity literature to a firm's global integration activities for hybrid products. We posit that consumers' willingness to purchase (WTP) a complex hybrid product is negatively affected by partial production shifts to an animosity-evoking country, and that self-reported animosity toward the country predicts lower WTP above and beyond consumer ethnocentrism and perceived product quality. In addition, we hypothesize a negative relationship between conservation values and WTP hybrid foreign products, and a positive relationship between openness values and WTP hybrid foreign products. A study of 319 US consumers revealed consistent support for these hypotheses, with the exception of the conservation values - WTP relationship. Practical implications and future research directions are discussed.
ISSN:0047-2506
1478-6990
DOI:10.1057/jibs.2009.29