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International Purchasing and Global Sourcing - What are the Differences?

Published on Sep 1, 2003in Journal of Supply Chain Management7.13
· DOI :10.1111/j.1745-493X.2003.tb00162.x
Robert J. Trent17
Estimated H-index: 17
(Lehigh University),
Robert M. Monczka29
Estimated H-index: 29
(ASU: Arizona State University)
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Abstract
SUMMARY As organizations think about the best way to respond to competitive demands, the development of global strategies and approaches, including global sourcing strategies, will become an increasingly attractive option. Since most organizations do not have in place well-developed global sourcing strategies, improvement opportunities are indeed attractive and largely unrealized. Realizing these opportunities requires a detailed understanding of global sourcing. Achieving this understanding demands replacing anecdotal perceptions and accounts of global sourcing with research-based findings. These findings will help supply managers better understand what it takes to shift from basic international purchasing to integrated global sourcing strategies and approaches.
  • References (19)
  • Citations (121)
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References19
Newest
Published on Dec 1, 2001in Journal of International Marketing3.38
Janet Y. Murray25
Estimated H-index: 25
(CityU: City University of Hong Kong)
Abstract In an era of intense global competition, firms realize that the effective use of global sourcing contributes significantly to their market performance. Increasingly, successful firms use a higher level of strategic alliance–based global sourcing for major components by cooperating with their suppliers, even when highly specific assets are involved. This phenomenon is contradictory to the recommendation of transaction cost analysis, in which global internal sourcing should be used by fir...
Published on Mar 1, 2000in Journal of Supply Chain Management7.13
Kenneth J. Petersen15
Estimated H-index: 15
(UO: University of Oregon),
David J Prayer1
Estimated H-index: 1
(SPbU: Saint Petersburg State University),
Thomas Scannell6
Estimated H-index: 6
(WMU: Western Michigan University)
SUMMARY This study was undertaken to address the need for empirical research on global sourcing strategy effectiveness. This article establishes the importance of and relationships between several factors that drive the effectiveness of global sourcing strategies. Companies are increasingly viewing global sourcing strategies as a means of reducing cost, increasing quality, and enhancing a firm's overall competitive position. This article uses a structural equation modeling methodology to test an...
Published on Dec 1, 1999in Logistics Information Management
Martin Fraering1
Estimated H-index: 1
(UTPA: University of Texas–Pan American),
Sameer Prasad18
Estimated H-index: 18
(University of Wisconsin–Whitewater)
Billions of dollars are being poured into developing nations by multinationals as part of their diversification, divestiture, facility location, and supplier selection strategies. By integrating the literature in international business, marketing, purchasing, and operations management, a contingency model is developed to minimize the overall costs of such decisions. This model provides linkages between the type of product, organizational and country characteristics, and the logistics and sourcin...
Robert J. Trent17
Estimated H-index: 17
(MSU: Michigan State University),
Robert M. Monczka29
Estimated H-index: 29
(MSU: Michigan State University)
Understanding the changes and trends affecting purchasing requires replacing anecdotal evidence with research-based observations. Using data collected annually from leading firms worldwide, this article details the real and projected changes and trends that have affected and will continue to affect purchasing and sourcing professionals. These changes and trends appear within seven areas: (1) performance improvement requirements, (2) supplier and purchasing/sourcing importance, (3) organization, ...
Published on Jan 1, 1998in Journal of Business Research4.03
A. Coskun Samli12
Estimated H-index: 12
(UNF: University of North Florida),
John M. Browning7
Estimated H-index: 7
(UNF: University of North Florida),
Carolyn Busbia2
Estimated H-index: 2
(Motorola)
Abstract Global sourcing is a powerful factor in developing a global competitive advantage. However, U.S. firms typically use global sourcing casually; that is, as an opportunity presents itself, rather than as a key element in their overall corporate strategic plan. This article establishes a conceptual distinction between opportunistic and strategic sourcing. Our research is based on a large scale study of the international group of the National Association of Purchasing Management. The findin...
Ajay Das19
Estimated H-index: 19
(MSU: Michigan State University),
Robert B. Handfield54
Estimated H-index: 54
(MSU: Michigan State University)
Just‐in‐time (JIT) has been written about since the early 1970s. Studies have investigated the growth of JIT sourcing and its implications. However, there has not been as much discussion of the issues faced by companies involved in the pursuit of JIT sourcing in a global supply chain. Undertakes a systematic review of the JIT sourcing and logistics literature and highlights key findings. Notes a number of key problems and best practice issues in the area, followed by an empirical examination of ...
Published on Jun 1, 1995in Journal of International Business Studies7.72
David L. Levy27
Estimated H-index: 27
(UMass: University of Massachusetts Amherst)
An international supply chain is conceptualized as a complex, dynamic system in which disruptions interact with long shipping and lead times to generate costs. Findings from a case study and simulation model indicate that demand-related disruptions created substantial and unexpected costs in terms of expedited shipping, high inventories, and lower demand fulfillment. Production-related disruptions declined over time, but demand-related disruptions did not. Implications for management are discuss...
Published on Oct 1, 1994in Marketing Intelligence & Planning
Shan Rajagopal6
Estimated H-index: 6
(University of Strathclyde),
Kenneth N. Bernard7
Estimated H-index: 7
(University of Strathclyde)
Global procurement is not a simple or easy solution to a company′s sourcing needs. With new markets and changing competitors challenging established business, global sourcing is now offering an opportunity for organizations to meet these challenges on a global basis. Discusses the varied interpretations and significance of global sourcing as an ingredient of success, emphasizing the link between world‐class production/quality, marketing and procurement. From these discussions and empirical evide...
Robert B. Handfield54
Estimated H-index: 54
(MSU: Michigan State University)
Describes the results of a survey returned by 97 purchasing managers who were asked to assess current patterns of global sourcing as practised by North American firms. Some of the issues examined include primary sourcing allocations, supplier evaluation criteria, operational performance measures and costs, managerial problems, and modes of communication. The results point to the importance of linking supplier selection criteria with corporate strategic initiatives in the evaluation of internatio...
Hokey Min13
Estimated H-index: 13
(AU: Auburn University)
In an era of global sourcing, the multinational firm′s success often hinges on the most appropriate selection of its foreign suppliers. International supplier selection, however, is very complicated and risky owing to a variety of uncontrollable and unpredictable factors affecting the decision. These factors may include political situations, tariff barriers, cultural and communication barriers, trade regulations and agreements, currency exchange rates, cultural differences, ethical standards, qu...
Cited By121
Newest
Published on Dec 1, 2019in International Journal of Production Economics5.00
Asad Shafiq (CSUF: California State University, Fullerton), P. Fraser Johnson15
Estimated H-index: 15
(UWO: University of Western Ontario),
Amrou Awaysheh1
Estimated H-index: 1
(IUPUI: Indiana University – Purdue University Indianapolis)
Abstract As firms search the world for suppliers that provide the best combination of cost, quality and latest technology, they have been confronted with the challenges of managing the sustainability performance of their global supply chains. Specifically, companies have come under increased scrutiny from various stakeholder groups for the labour and human rights practices of suppliers located in emerging economies. Drawing on the sustainability, supplier relationship management, and stakeholder...
The AEC initiative poses both significant opportunities and difficult challenges to the Malaysian SME communities. This study sets out to investigate the preparedness of the local SMEs to compete and exploit opportunities in a post-AEC era. The aim is to contribute to existing literature and knowledge base on SMEs’ practices in the ASEAN region.The manufacturing sector has been selected for study, and the research efforts focus on procurement competencies. SME procurement practices in the two la...
Published on Nov 1, 2018in Journal of Purchasing and Supply Management3.09
Larry C. Giunipero30
Estimated H-index: 30
(FSU: Florida State University),
Samantha Bittner1
Estimated H-index: 1
(College of Business Administration)
+ 1 AuthorsMee Hee Cho1
Estimated H-index: 1
(Kyung Hee University)
Abstract Sourcing is an essential component of purchasing and supply chain management and has been extensively studied by academic researchers. A comprehensive scholarly literature review of sourcing was undertaken to provide guidance for future scholars through an in-depth review of past research. A total of twenty journals were selected, and 520 articles addressing sourcing topics were identified from 1995 to the present. The review process identified seven major sourcing categories within the...
Yu Gong4
Estimated H-index: 4
(University of Southampton),
Fu Jia13
Estimated H-index: 13
(UoB: University of Bristol)
+ 1 AuthorsLenny Koh10
Estimated H-index: 10
(University of Sheffield)
Purpose The purpose of this paper is to explore how multinational corporations (MNCs) orchestrate internal and external resources to help their multi-tier supply chains learn sustainability-related knowledge. Design/methodology/approach An exploratory multiple case study approach was adopted and three MNCs’ sustainable initiatives in China were examined. The data were primarily collected through 43 semi-structured interviews with managers of focal companies and their multi-tier suppliers. Findin...
Published on Jan 1, 2018
Masaaki Kotabe48
Estimated H-index: 48
(TU: Temple University),
Janet Y. Murray25
Estimated H-index: 25
(UMSL: University of Missouri–St. Louis)
Increased global sourcing of manufacturing and service activities from independent suppliers has been a prominent part of the restructuring of firms’ supply chains since the 1980s. Academics and consulting companies have advocated global sourcing as one of the key drivers of superior corporate strategy that has a direct impact on marketing performance, including market share, product quality, customer satisfaction, and brand loyalty, among others. In this chapter we first discuss the trend and n...
Published on Jan 1, 2018
Tiziana Russo Spena6
Estimated H-index: 6
(University of Naples Federico II),
Alessandra De Chiara3
Estimated H-index: 3
(University of Naples Federico II)
This chapter aims at further exploring the role of cultural factors in the sustainability management of MNCs’ supply chain. In more depth, the study seeks to identify to what extent the dimensions of culture can significantly lead MNCs to adopt a more sustainable approach for their supply chains. A content analysis of CSR reports of companies operating in the automotive industry has been conducted. The analysis sheds light on MNCs’ sustainability practices and the interaction with suppliers whil...
Published on Sep 1, 2017in International Business Review3.64
Harri Lorentz11
Estimated H-index: 11
(UTU: University of Turku),
Mukesh Kumar7
Estimated H-index: 7
(University of Cambridge),
Jagjit Singh Srai12
Estimated H-index: 12
(University of Cambridge)
Abstract The aim of this research is to find out how the extant literature on international purchasing and supply management (PSM) covers the elements of capability from the perspective of distance. A priori , we form a framework of capability driving elements and conclude that distance—in its multiple dimensions—is the fundamental management aspect in international PSM. Equipped with analytical frameworks and a bottom–up process for identifying emergent themes, a systematic literature review wa...
Fu Jia13
Estimated H-index: 13
,
Guido Orzes10
Estimated H-index: 10
+ 1 AuthorsGuido Nassimbeni22
Estimated H-index: 22
Purpose The purpose of this paper is to develop a synthesised conceptual framework for global sourcing (GS) strategy and structure. Design/methodology/approach The authors adopt a systematic literature review method and analyse through content analysis techniques 52 peer-reviewed journal articles focussed on GS strategy and structure. Based on these analyses, a conceptual model is developed. Findings A synthesised construct of GS strategy, consisting of three dimensions, i.e., supply internation...
Alina Stanczyk2
Estimated H-index: 2
,
Zelal Cataldo1
Estimated H-index: 1
+ 1 AuthorsChristian Busse12
Estimated H-index: 12
Purpose: The purpose of this paper is to present a systematic review of the literature concerning the negative aspects of global sourcing (GS). It complements prior research on the positive aspects of GS, advances theoretical understanding of the phenomenon, and suggests an agenda for future research. Design/methodology/approach: The sourcing, international business and supply chain management literature is systematically reviewed and findings from 83 previous studies are investigated. Findings:...