Global sourcing strategy and structure: towards a conceptual framework

Abstract

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 internationalisation, internal integration and external integration, is proposed. The GS structure construct is further broken down into structural design and control and coordination, consisting of three dimensions for each. Propositions for GS strategy, GS structure and, in particular, the relationships between them are developed for future empirical validation. Originality/value This is the first study which synthesises various dimensions of GS strategy and GS structure and advances/extends the theory of the strategy-structure nexus to a GS context. The conceptual model provides a comprehensive framework for future empirical work and opens avenues of research on this topic.

Achieving sustainability in global sourcing: towards a conceptual framework

“…Recent studies of GS have focused on a variety of topics such as GS strategy and structure (Jia et al, 2017), the dark side of GS (Stanczyk et al, 2017) and the competitive dynamics in GS (Vos et al, 2016); however, few studies have explored the outcomes of GS. It remains unclear whether GS can actually achieve sustainable performance.…”

The role of context, activities, and organization, in Value-Based Procurement

“…The procurement organization is a central concept to procurement literature. Different ways of organizing procurement have an effect on how buying organizations gain leverage or explore sourcing opportunities (Yang, Cheng et al 2017), gain capabilities and local insight (Jia, Orzes et al 2017) involve suppliers in working towards higher product quality, shorter lead-times, and lower costs (Lakemond, van Echtelt et al 2001) and outsource part of its purchasing activities (Bals and Turkulainen 2017). A purchasing organization that fits with a purchasing strategy has positive effects on cost performance and innovation performance (Akın Ateş, van Raaij et al 2018).…”

“…(D) The introduction of a firmcentral procurement council can help drive the value proposition. Centralization (Giunipero and Monczka 1997, Trautmann, Turkulainen et al 2009, Jia, Orzes et al 2017, Standardization Lewin 1996, Bals, Laine et al 2018), Organization in general (Schneider andWallenburg 2013, Akın Ateş, van Raaij et al 2018), Hierarchies (Buckles and Ronchetto 1996), Activity centricity (Lidegaard, Boer et al 2015) Procurement Account Manager (Kotteaku, Laios et al 1995, Bals andTurkulainen 2017), Contextualization (Simpson, Power et al 2007, Dabhilkar, Bengtsson et al 2016 The still be a useful perspective on procurement strategy, but the many activities and organizational aspects discussed in this context make little sense to accommodate for when buying off-the-shelf products available in abundance. The introduction of Strategic Sourcing provides a way of gathering all similar activity under one division and stimulates sharing and using experience between procurers.…”

“…A balance between decentralized and quick decision making and the coordination of different groups is presented by the authors as a challenge when organizing international purchasing. International Purchasing Offices (IPOs) (Jia, Orzes et al 2017) may, in some cases, have capabilities and local insight that empowers them decentralizing purchasing and make it preferable. These increasingly autonomous organs then become more strategically important and play a bigger role in strategic development.…”

“…The Procurement Council is a group that centralizes procurement decisions (Giunipero and Monczka 1997, Trautmann, Turkulainen et al 2009, Jia, Orzes et al 2017, and, thus, it ensures that procurement is done in accordance with the corporate strategy.…”