An Empirical Investigation of Global Sourcing Strategy Effectiveness

Kenneth J. Petersen · David J Prayer · Thomas V. Scannell

161 citations0/0 files storedJournal of Supply Chain Management

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Outsourcing and Supply Chain Management Quality and Supply Management Sustainable Supply Chain Management

Abstract

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 explanatory model of global sourcing strategy effectiveness. Results indicate that global sourcing structures and processes, global sourcing business capabilities, international language capabilities, and top management commitment to global sourcing are critical to the effectiveness of a global sourcing strategy.

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References

1988On the Evaluation of Structural Equation Models 1989Structural Equations with Latent Variables 1989EQS : structural equations program manual 1998Advanced Structural Equation Modeling: Issues and Techniques 1982Some Methods for Respecifying Measurement Models to Obtain Unidimensional Construct Measurement 1991Global Sourcing: A Development Approach 1993International Purchasing: Benefits, Requirements, and Challenges 1997Sensitivity to National Business Culture: Effects on U.S.-Mexican Channel Relationship Performance

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2017Modelling green and lean supply chains: An eco-efficiency perspective 2001Global supply chain management 2003The Perceived Impact of Outsourcing on Organizational Performance 2005Supply Management Strategies for the Future: A Delphi Study 2020Strategy implementation: A review and an introductory framework 2014Internal integration as a pre-condition for external integration in global sourcing: A social capital perspective

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