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An Empirical Investigation of Global Sourcing Strategy Effectiveness
Author(s) -
Petersen Kenneth J,
Prayer David J,
Scannell Thomas V.
Publication year - 2000
Publication title -
journal of supply chain management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1523-2409
DOI - 10.1111/j.1745-493x.2000.tb00075.x
Subject(s) - strategic sourcing , business , global strategy , competitive advantage , empirical research , industrial organization , quality (philosophy) , position (finance) , process management , marketing , strategic planning , philosophy , strategic financial management , epistemology , finance
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.