Efficiency vs. effectiveness orientation of global sourcing strategy: A comparison of U.S. and Japanese multinational companies

Published on Nov 1, 1998in Academy of Management Perspectives3.86
· DOI :10.5465/ame.1998.1334000
Masaaki Kotabe48
Estimated H-index: 48
Executive Overview During most of this decade, Japan has been mired in its longest post-war recession. Some pundits predict that this will be the end of the Japanese corporate juggernaut. Indeed, our interest in Japan and Japanese competition has waned concomitantly in recent years. So has our learning from the Japanese. This is dangerously short-sighted. The pendulum of international trade has shifted from cross-Atlantic to cross-Pacific in recent years, as U.S. and Japanese multinational companies engaged in global sourcing strategy across the Pacific. Indeed, while struggling in the post-bubble economy, many Japanese companies have accelerated their move toward their Pacific Rim global sourcing paradigm. Based on Japan's regional ties with the rest of Asia, Australia, and increasingly other parts of the Pacific Rim, this paradigm builds on Japan's famed target costing, target exchange rate, new product development style, and keiretsu (interfirm alliances). While Japanese companies have slowed the pace ...
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Cited By91
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...
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...
Published on Nov 1, 2016in Industrial Marketing Management4.78
Stefanos Mouzas21
Estimated H-index: 21
(Lancaster University)
The study investigates performance-based contracting in long term-supply relationships. Evidence in the context of supply relationships involving manufacturers of consumer and pharmaceutical products, service providers and grocery retailers indicates that the performance that companies buy and sell can be analyzed as specific combinations of effectiveness, efficiency and risk. While firms engage in a complex and time-consuming process to design and agree upon performance targets, incentive mecha...
Published on Jul 1, 2016in Information & Management4.12
Laura Lucia-Palacios9
Estimated H-index: 9
(University of Zaragoza),
Victoria Bordonaba-Juste9
Estimated H-index: 9
(University of Zaragoza)
+ 1 AuthorsMarko Grünhagen11
Estimated H-index: 11
(Eastern Illinois University)
After testing for measurement invariance, information technology (IT) use is different for the U.S. and Spain.IT use and the firm's IT human capital are the main drivers of technological opportunism (TO) capability.The effect of IT vendor support on technological opportunism is country dependent.Vertical integration is preferred when a firm uses IT intensively.IT vendor support has positive effects on technological opportunism if the firm invests in IT human capital. This study examines the use ...
Grace Nzioka (JKUAT: Jomo Kenyatta University of Agriculture and Technology)
Information Technology Outsourcing has been accepted as part of modern business practices. The global market capitalization of IT Outsourcing is predicted to be more than $260 billion in 2018. However, IT Outsourcing projects are not an easy task to manage and many projects fail due to problems in partnership, technology shifts, ineffective communication and lack of risk planning. In the current decade, IT Outsourcing appears to be losing ground and other options are being considered and sought,...
Published on Mar 1, 2016in Review of Finance1.94
Cheol S. Eun21
Estimated H-index: 21
(Georgia Institute of Technology),
Lingling Wang4
Estimated H-index: 4
(Tulane University)
Motivated by the rising importance of international sourcing by US firms in recent decades, we study the influence of international sourcing on capital structure. We find that international sourcing has a significant negative influence on financial leverage. The negative influence is stronger in industries that have high R&D intensities and are financially constrained. However, the negative relation is mitigated when suppliers are from countries with strong legal environments and when the suppli...
Published on Jan 1, 2016
Internationalization of small-medium enterprises is seen to be essential as it contribute most to the country’s income. Despite all the government effort in aiding SMEs to go global, there are still SMEs that hesitate to follow the trend. Therefore, this paper seeks to investigate hindering factor of Malaysian SMEs from going global. The study adopted in-depth interview of 14 SMEs entrepreneurs from various industry in Southern region of Malaysia. Results indicate that five common barriers arise...
The study assessed the outsourced services in Nigerian Commercial Banks. It also examined reasons for outsourcing business services with a view to identifying benefits and challenges facing outsourcing in the commercial banking industry of Lagos, Lagos State, Nigeria.
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