Global Sourcing

31 Pages Posted: 17 Feb 2003

See all articles by Michael J. Moi

Michael J. Moi

Radboud University Nijmegen - Nijmegen School of Management

Rob van Tulder

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Paul R. Beije

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Date Written: July 1, 2002

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.

Keywords: performance, MNCs, global sourcing, regionalization, sourcing strategy

JEL Classification: L2, M, M10, L1

Suggested Citation

Moi, Michael J. and van Tulder, Rob J.M. and Beije, Paul R., Global Sourcing (July 1, 2002). ERIM Report Series Reference No. ERS-2002-55-ORG. Available at SSRN: https://ssrn.com/abstract=371004

Michael J. Moi

Radboud University Nijmegen - Nijmegen School of Management ( email )

Thomas van Aquinostraat 3
P.O. Box 9108
Nijmegen, 6500HK
Netherlands

Rob J.M. Van Tulder (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Paul R. Beije

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
+31-10-4081387 (Phone)
+31-10-4089014 (Fax)

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