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Global Sourcing Strategy: An Evolution in Global Production and Sourcing Rationalization

Published on Jan 1, 2018
· DOI :10.1007/978-3-319-61385-7_15
Masaaki Kotabe48
Estimated H-index: 48
(TU: Temple University),
Janet Y. Murray25
Estimated H-index: 25
(UMSL: University of Missouri–St. Louis)
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Abstract
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 nature of global sourcing strategy as it has evolved in response to the climate of the time since the 1980s. We then discuss how global sourcing levels must achieve a strategic fit with the environment. Finally, we combine these balance and fit perspectives to suggest how changes in the fit alter the required balance in global sourcing over time. From this synthesis we develop several future research questions related to important conceptual and theoretical perspectives on global sourcing.
  • References (49)
  • Citations (1)
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References49
Newest
Published on Jan 1, 2017in Strategic Management Journal5.57
Lenos Trigeorgis26
Estimated H-index: 26
('KCL': King's College London),
Jeffrey J. Reuer41
Estimated H-index: 41
(CU: University of Colorado Boulder)
Research summary: This article provides a review of real options theory (ROT) in strategic management research. We review the fundamentals of ROT and provide a taxonomy of this research. By synthesizing and critiquing research on real options, we identify a number of important challenges as well as opportunities for ROT if it is to enhance its impact on strategic management and potentially develop into a theoretical pillar in the field. We examine how ROT can inform the key tensions that manager...
Published on Mar 1, 2016in Journal of Marketing7.82
Constantine S. Katsikeas40
Estimated H-index: 40
(University of Leeds),
Neil A. Morgan37
Estimated H-index: 37
(IU: Indiana University Bloomington)
+ 1 AuthorsG. Tomas M. Hult60
Estimated H-index: 60
(MSU: Michigan State University)
AbstractResearch in marketing has increasingly focused on building knowledge about how firms’ marketing contributes to performance outcomes. A key precursor to accurately diagnosing the value firms’ marketing creates is conceptualizing and operationalizing appropriate ways to assess performance outcomes. Yet, to date, there has been little conceptual development and no systematic examination of how researchers in marketing should conceptualize and measure the performance outcomes associated with...
Published on Dec 1, 2015in Journal of Retailing3.67
Irina V. Kozlenkova6
Estimated H-index: 6
(MSU: Michigan State University),
G. Tomas M. Hult60
Estimated H-index: 60
(MSU: Michigan State University)
+ 2 AuthorsPinar Kekec2
Estimated H-index: 2
(MSU: Michigan State University)
This paper synthesizes five decades of supply chain-related research from premier managerially oriented marketing journals and provides a state-of-the-art integration and forecasting of where the field is heading. Such a review identifies where the field of supply chain management (SCM) has been, where it is, and where it is likely to go within the domain of marketing. Importantly, our paper involves a strategic discovery of the anchoring of SCM thought in marketing. A prominent feature of this ...
Published on Dec 1, 2014in Strategic Management Journal5.57
Amit Jain7
Estimated H-index: 7
(NUS: National University of Singapore),
Raymond-Alain Thiétart11
Estimated H-index: 11
(ESSEC Business School)
In this paper, we argue that capabilities serve as shift parameters that result in a change in the critical value of asset specificity at which firms switch from in-sourcing to outsourcing. Capabilities have two effects: they result in a change in firm production costs and in firm governance costs relative to the market. As a result, the frontier at which market governance gives way to firm governance shifts. Three factors that produce such shifts are the value, rarity, and inimitability of capa...
Published on Mar 1, 2014in Journal of Operations Management7.78
Dina Ribbink4
Estimated H-index: 4
(UWO: University of Western Ontario),
Curtis M. Grimm32
Estimated H-index: 32
(UMD: University of Maryland, College Park)
Abstract In today's global economy, an ever-increasing number of companies are dealing with international partners, instigating a need to understand the impact of cultural differences on business interactions. Using Hall's distinction of high- and low-context culture, this study investigates the direct and moderating effects of cultural differences in dyadic buyer–supplier negotiations. Theory is developed regarding the impact of culture on joint profits, juxtaposing Transaction Cost Economics a...
Published on Mar 1, 2012in Journal of the Academy of Marketing Science9.36
Masaaki Kotabe48
Estimated H-index: 48
(TU: Temple University),
Michael J. Mol20
Estimated H-index: 20
(Warw.: University of Warwick)
+ 1 AuthorsRonaldo Parente14
Estimated H-index: 14
(RU: Rutgers University)
Over the past few decades, outsourcing has become a widely used and researched means for firms to change their performance. In this article, we attempt to link outsourcing to the market success of firms, specifically their market share. We argue that although firms may be able to increase their market share through outsourcing, this is only true up to a point, beyond which market share actually decreases as a consequence of further outsourcing. There is, in other words, a negatively curvilinear ...
Published on Aug 1, 2011in Journal of the Academy of Marketing Science9.36
G. Tomas M. Hult60
Estimated H-index: 60
(MSU: Michigan State University)
Now more than ever, marketing is assuming a key boundary-spanning role—a role that has also redefined the composition of the marketing organization. In this paper, the marketing organization’s integrative and mutually reinforcing components of marketing activities, customer value–creating processes, networks, and stakeholders are delineated within their boundary-spanning roles as a particular emphasis (labeled MOR theory). Thematic marketing insights from a collection of 31 organization theories...
Published on May 1, 2011in Journal of International Business Studies7.72
Runjuan Liu7
Estimated H-index: 7
(U of A: University of Alberta),
Dorothee J. Feils5
Estimated H-index: 5
(U of A: University of Alberta),
Barry Scholnick12
Estimated H-index: 12
(U of A: University of Alberta)
The “tradability revolution” in services has led to a dramatic expansion of offshore outsourcing of services, allowing firms to take advantage of lower production costs in foreign countries. However, production costs alone cannot explain the location determinants of offshore outsourcing of services. In this paper, we argue that minimizing transaction costs is also an important determinant of the location of offshore outsourcing of services. We empirically analyze characteristics of services and ...
Published on Feb 1, 2011in Journal of International Business Studies7.72
Olivier Bertrand16
Estimated H-index: 16
(University of Toulouse)
We examine the effect of offshore outsourcing on the export performance of firms. Building on the theories of international business, the resource-based view and transaction cost economics, we argue that offshore outsourcing helps firms – directly or indirectly – to export more. It may reduce their production costs and enhance their flexibility. It may also provide them with new resources and market knowledge. However, the impact of offshore outsourcing depends on the resources and capabilities ...
Published on Dec 31, 2010
John H. Dunning62
Estimated H-index: 62
,
Sarianna M. Lundan14
Estimated H-index: 14
This is the second edition of the celebrated volume by Professor John H. Dunning, first published in 1993, which has now been not only updated but also enriched with the addition of a number of new topics. This addition was not least due to the expertise of the co-author, Sarianna Lundan, in the institutional aspects of international business and the internal governance of transnational corporations (TNCs). It is a comprehensive synthesis of all the theories in International Business based on ex...
Cited By1
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Published on Jun 1, 2019in Systemic Practice and Action Research0.75
Godfrey Mugurusi4
Estimated H-index: 4
(NTNU: Norwegian University of Science and Technology),
Luitzen de Boer15
Estimated H-index: 15
(NTNU: Norwegian University of Science and Technology)
This paper presents an account of the coordination of purchasing activities in a firm that offshored their manufacturing operations that later turned problematic. Empirical data is drawn from a single in-depth case study within a large multinational company which was involved in production offshoring in 2009. The paper draws on the viable systems model (VSM) as the main theoretical lens. First, our findings suggest that purchasing coordination is a loose construct; one in which the role and type...
View next paperGlobal sourcing of services versus manufacturing activities: is it any different?