Does global sourcing pay-off? A competitive dynamics perspective

Frederik G.S. Vos; Paul Scheffler; Holger Schiele; Philipp Horn

doi:10.1016/j.pursup.2016.07.002

Does global sourcing pay-off? A competitive dynamics perspective

Frederik G.S. Vos^*, Paul Scheffler, Holger Schiele, Philipp Horn

^*Corresponding author for this work

Faculty of Behavioural, Management and Social Sciences

Research output: Contribution to journal › Article › Academic › peer-review

21 Citations (Scopus)

133 Downloads (Pure)

Abstract

The supposed benefits of global sourcing in supply chain management remain subject to debate. Here this study investigates the potential benefits of global sourcing using a large dataset obtained from a leading European automotive original equipment manufacturer, spanning a period of five years. Contrary to expectations, this study found no evidence that low-wage country sourcing leads to cost reductions relative to sourcing from suppliers based in industrialized countries. However, the data does show that global sourcing induces increased competition within the industrialized country supply base when low-wage country suppliers participate in negotiations. Additionally, a new method for assessing competitive dynamics in supply markets is introduced.

Original language	English
Pages (from-to)	338-350
Journal	Journal of purchasing and supply management
Volume	22
Issue number	4
DOIs	https://doi.org/10.1016/j.pursup.2016.07.002
Publication status	Published - 2016

Keywords

2023 OA procedure

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10.1016/j.pursup.2016.07.002

ArticleFinal published version, 773 KBLicence: Taverne

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AU - Schiele, Holger

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AB - The supposed benefits of global sourcing in supply chain management remain subject to debate. Here this study investigates the potential benefits of global sourcing using a large dataset obtained from a leading European automotive original equipment manufacturer, spanning a period of five years. Contrary to expectations, this study found no evidence that low-wage country sourcing leads to cost reductions relative to sourcing from suppliers based in industrialized countries. However, the data does show that global sourcing induces increased competition within the industrialized country supply base when low-wage country suppliers participate in negotiations. Additionally, a new method for assessing competitive dynamics in supply markets is introduced.

KW - 2023 OA procedure

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DO - 10.1016/j.pursup.2016.07.002

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JO - Journal of purchasing and supply management

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ER -

Does global sourcing pay-off? A competitive dynamics perspective

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Keywords

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