Resource based strategy and managerial power in networks of internationally dispersed technology units

Abstract

<p>Attempts to resolve control issues in networks of internationally dispersed technology units using managerial techniques such as increased communication and/or the application of hierarchical control have had limited success because the control issues are rooted in the strategy of the firm. In this paper a linking of the Resource Based View of the firm, Resource Dependency Theory and the Vroom-Yetton model of leadership is used to show that when important technical resources are located offshore for strategic reasons, resource-based power goes with them. The extra-national technology units that embody those resources should be managed with methods that respect that power shift. Theoretical, empirical and managerial implications are drawn from this analysis.</p>