Template-Type: ReDIF-Paper 1.0
Author-Name: Mol, M.J.
Author-Name-Last: Mol
Author-Name-First: Michael
Author-Name: van Tulder, R.
Author-Name-Last: van Tulder
Author-Name-First: Rob
Author-Name: Beije, P.R.
Author-Name-Last: Beije
Author-Name-First: Paul
Title: Global Sourcing
Abstract: Since the early 1990s international - or even global -  outsourcing of  intermediate 
 products from  suppliers has been propagated  as a key means  to improve the performance of 
 firms. It is argued  that becoming more lean  and  internationally focused is beneficial for 
 the buyer as well as for the  supplier . Global sourcing is currently believed to be a 
 common phenomenon.  Drawing upon a recent survey among a representative sample of  200 large 
 Dutch manufacturing firms this paper gives an answer to the question to what extent  
 internationalization of sourcing is indeed taking place and whether it affects a firm's 
 performance.
 
 The  analysis reveals that for this sample of firms global sourcing is the exception rather 
 than the rule. Although  firms  undertake considerable international outsourcing, this is 
 mostly limited to nearby ( European Union) countries. Statistical tests reveal that there is 
 no significant relation between international outsourcing and either market or financial 
 performance. International outsourcing can not be used to adequately explain firm 
 performance. Therefore, an alternative approach is discussed, in which the degree of 
 (international) outsourcing is contingent upon factors like the size and location of the 
 headquarters of the firm.
Creation-Date: 2002-07-01
File-URL: https://repub.eur.nl/pub/210/erimrs20020701145256.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2002-55-ORG
Classification-JEL: L1, L2, M, M10
Keywords: MNCs, global sourcing, performance, regionalization, sourcing strategy
Handle: RePEc:ems:eureri:210