Towards a “theoretical toolbox” for strategic sourcing

Abstract

Purpose -The goal of this paper is to provide a broad foundation for future research in the area of strategic sourcing. Design/methodology/approach -The foundation is derived by drawing from various well-established organizational theories. Specifically, strategic sourcing was viewed from the perspective of institutional theory, resource dependence theory, network theory, systems theory, resource/knowledgebased views of the firm, transaction cost economics, agency theory, strategic choice theory, sociocognitive theory, and critical theory. Findings -By viewing strategic sourcing through the lens of ten organizational theories, this research provides multiple insights into many interrelated strategic sourcing questions, such as when to make, buy or ally, how many and which suppliers, and how to manage sourcing relationships. The paper offers a rich and diverse foundation to foster future theory-building activities in sourcing and supply management research. Originality/value -While some of these theory bases have been utilized, to some degree, in the supply management research, the paper offers a more holistic perspective of theoretical insights for strategic sourcing. Each of these organizational theories could be utilized as a foundation for future studies. Further, the paper offers competing and/or complementary theory bases to enhance possible insights into many strategic sourcing questions such as when to make, buy or ally.

Development of a risk-oriented strategic sourcing (ROSS) framework for the construction and electronics manufacturing industries

“…:Essig, 2000;Steinle and Schiele, 2008;Mols, 2010). The following Shook et al (2009) highlight the ten most important theories in sourcing, and recommended the application of two or more to enhance or compare complementary theories in sourcing research (Shook et al, 2009). However, only 6% of the reviewed articles refer to two or more theories.…”

“…Where Shook et al (2009) discussed the most common theories in a sourcing context, the applicability to businesses or companies is not discussed. In certain cases, companies may adopt behaviours to different theories (e.g.…”

“…Shook et al (2009) review the ten most important theories being applied in sourcing and recommend their application in academia and business. These are: transaction cost economics, resource dependency view, resource-based view, institutional, systems, network, agency, strategic choice, sociocognitive and critical theory.…”

“…Therefore, relevant theories were identified to support problem formulation and model building (Van Mannen 1979 cited by Currall et al, 1999). Transaction cost economics focuses on economic behaviour CHAPTER THREE -METHODOLOGY AND RESEARCH DESIGN -105 -and the evaluation of make-or-buy decisions, which seem to be central in strategic sourcing (Shook et al, 2009). Therefore, the transaction cost economics theory was selected as the most appropriate fit for the research problem and is presented in Table 3 -6 (Shook et al, 2009).…”

“…In particular, Shook et al (2009) review the ten most important theories being applied in sourcing and recommend the application of theory in academia and business. Pagano (2009) presents a literature review on relational capabilities in global sourcing, while Kausik and Mahadevan (2012) present a literature review on strategic sourcing from 1997-2010.…”