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The Use of Intermediate Sourcing Strategies
Author(s) -
Heriot Kirk C.,
Kulkarni Subodh P.
Publication year - 2001
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.2001.tb00089.x
Subject(s) - bidding , strategic sourcing , business , industrial organization , vertical integration , competitive advantage , sample (material) , marketing , strategic planning , chemistry , chromatography , strategic financial management
SUMMARY Much of the existing literature discusses vertical integration and competitive spot bidding as sourcing strategy choices, but often neglects intermediate sourcing strategies, such as taper integration and long‐term supplier relationships. This exploratory study examines the extent to which firms use intermediate sourcing strategies, as opposed to the polar strategies, and attempts to improve our understanding of the sourcing choices available to manufacturing firms. Results from a sample of 209 plant managers indicate that firms use taper integration and long‐term supplier relationships more frequently than vertical integration and competitive spot bidding. Further, the choice of a sourcing strategy was found to be dependent on the industry.