Global sourcing versus domestic sourcing: Implementation of technology, competitive advantage, and performance

Abstract

While it is thought that global sourcing is critical to achieve competitive advantage, no substantial empirical data has been provided with respect to its role in increasing companies' performance and in sustaining competitive advantages. This industry-specific exploratory study is designed to fill these voids of previous studies and to provide a realistic picture of current global sourcing practices. This study particularly compared global sourcing versus domestic sourcing firms in terms of implementation of technology, perceptions of competitive advantage, and performance. The survey results, with 113 US apparel manufacturers responding, showed that companies with large sales volumes who produce fashion-oriented apparel products significantly source globally. Companies with small sales volumes and focusing basic items tend to source domestically. Global versus domestic sourcing firms were significantly different in implementation of some technologies, sources of competitive advantage, and operational performances. However, in terms of market performances, global versus domestic sourcing firms were not significantly different. Based on findings, theoretical and practical implications were suggested.

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