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Based on a legitimacy perspective, this study aims to investigate when local sourcing, as a strategic legitimacy action, improves or impairs subsidiary performance. The authors investigate the moderating role of regulatory/normative institutional distance in the relationship between local sourcing and subsidiary performance. Particularly, departing from prior relevant research, the authors reflect on the direction of institutional distance, categorizing it as either upward or downward institutional distance.

Using Japanese governmental data, this study performs a panel data analysis using a sample of 1,054 Japanese subsidiaries operating in 37 host countries over a 5-year observation period.

The authors reveal that downward regulatory/normative institutional distance more positively moderates the relationship between local sourcing and subsidiary performance than upward regulatory/normative distance.

There is little research that specifically discusses the performance effects of local sourcing while considering legitimacy concerns. Moreover, the results of analyses of the relationship between local sourcing and subsidiary performance in existing studies are inconsistent, suggesting that it is necessary to identify the boundary conditions under which local sourcing improves or impairs subsidiary performance. To fill these gaps, this study clarifies when local sourcing improves or impairs subsidiary performance based on a legitimacy perspective. The authors’ finding makes a clear contribution to the literature on strategic legitimacy actions and input localization in multinational corporations.

The purpose of this paper is to examine how the location of a firm’s headquarters and component sourcing impact a firm’s responsiveness in a product-harm crisis in local market.

The authors collected data on 1,251 vehicle recalls from 12 manufacturers, six in the USA, three in Germany, and three in Japan. All of the recalls occurred in the USA between 2002 and 2010. The time the product was first released into the marketplace was used as the starting point while the time the recall was initiated (if at all) was used to record the probability of the product recall over time. Specifically, a survival analysis with an accelerated failure time model was employed to examine the speed with which a product is recalled. The authors examined the impact of foreign composition using information provided by the American Automobile Labeling Act, which lists the proportion of each vehicle that is composed of domestic parts (USA/Canada) and foreign parts. Organizational characteristics (i.e. size, market share, assets, net income, and reputation) and recall size (i.e. number of affected vehicles) that might have an effect on time to recall were controlled for.

The authors found that firms headquartered outside the local market would take longer to issue a product recall than firms that were headquartered in the local market. Firm headquartered outside the local market can reduce the time taken to recall by sourcing parts from the local marketplace, rather than from abroad. Interestingly, even local firms are affected by the location of component sourcing, such that they take longer to issue a recall if they sourced parts from abroad.

Research in international marketing has examined the benefits of integration to firms, but has not studied the risks of integration. By highlighting the challenges of managing institutional differences and integration difficulties, the authors show that location of headquarters and the location from where components are sourced have an effect on firm responsiveness in product-harm crises. Further, the authors build on the global supply chain management literature that has shown the effect of upstream activities (i.e. foreign production) on downstream activities (i.e. product quality). Specifically, the authors show that upstream activities can not only affect product quality, but also the ability of firms to respond to those product qualities in a timely fashion.

This paper revisits Bartlett and Ghoshal’s transnational theory of the MNC in relation to multi-domestic MNCs. We argue that the aggregate level of analysis adopted by Bartlett and Ghoshal is unhelpful for identifying significant changes in multi-domestic MNCs at the level of discrete functions. We argue that a more disaggregated level of analysis is required. Our analysis of two cases of multi-domestic MNCs that have undertaken the global integration of their locally distributed purchasing functions indicates that while significant change to the purchasing function has occurred, at the aggregate level both MNCs remain multi-domestic. In both cases the decision to integrate local purchasing was regarded as having more obvious benefits than integrating other functions such as marketing. While both of our case multi-domestic MNCs may in future choose to integrate other functions and develop into full-fledged transnational companies we argue that there is no inevitability to this. Indeed global integration may cease with the purchasing function. A second theme in this paper is that we argue that Bartlett and Ghoshal’s transnational theory has a biased view of what constitutes effective governance mechanisms for achieving global integration, local responsiveness and worldwide learning and that it would greatly benefit from a more balanced application of hierarchical and relational governance mechanisms.

Although noticeable improvements have been made in global health in recent years, the distribution is uneven throughout the world and many developing and low-income countries lack access to required medicine and vaccines. Thus, a model to strategically source vaccines for these nations can contribute a great deal. This paper aims to present an extensive review of strategic sourcing literature, and to identify the criteria and available models in making strategic sourcing decisions. The purpose is to develop a decision making framework for future empirical study of humanitarian aid networks, more specifically, sourcing and distribution of vaccines in developing countries.

A thorough review of several purchasing and supply chain management (SCM) journals was conducted to identify the strategic criteria in making sourcing decisions, hence “strategic sourcing”. In line with this, a number of sourcing strategies were reviewed to find the relevant strategic criteria. Secondary data from practice were also investigated for special characteristics of vaccine supply chains in humanitarian aid networks. Articles were then scrutinized and results categorized in order to develop a framework for future empirical studies.

The findings show the historical development of strategic sourcing and the criteria in making strategic sourcing decisions. More recent studies, while taking a look back in history, have revealed a mix of strategies for more flexible models. Quality has been noted to be a strategic criterion for sourcing vaccines and this has caused the supply market to be dispersed on a global scale.

Considering the extensive number of academic publications, due to the focus of this study being sourcing within humanitarian aid networks, a number of academic journals in logistics/SCM/sourcing were reviewed.

A decision making framework is presented for sourcing vaccines within the humanitarian sector. The criteria in making strategic sourcing decisions are further re-evaluated and a base model proposed. The framework will be used for further research on sourcing in the humanitarian aid sector as well as practical implications.

This paper examines whether firms choose to source from multinational (MNC) suppliers instead of local suppliers as a means of overcoming weak contract enforcement institutions and as a means of accessing supply chain management capabilities. It uses a unique dataset of international contract manufacturing orders constituting the global supply chains of many of the world’s largest brands in footwear, sportswear, and apparel. It finds strong evidence that buyers are more likely to source from MNC suppliers in countries where contract enforcement is weak and when they have less experience sourcing from a given country. Further, it finds evidence that buyers are more likely to source from MNC suppliers when they source a wider variety of products, have smaller supplier networks, or have smaller order volumes.

The unglamorous leek is an everyday foodstuff in a British supermarket, but its meaning is constructed through the interplay of a range of non-human materialities including the plant, its packaging and its information dense labels. This chapter examines the variations in the ways in which leeks are marketed in different supermarkets, with a particular focus on how they can be traced back to their roots in British fields. We examine the ways in which non-human and virtual entities ‘bring to life’ the human producers of the leeks in a bid to mimic the reconnection that is sought through local food systems. We use the example of the leeks to explore what is happening to food supply chains, urban-rural connections and rural representations as farmers and retailers build new modes of working and as social media tools open up virtual access to the people growing our food.

Although locally sourced and produced foods are a growing trend in food marketing, they are not yet clearly understood nor consistently defined. There is no lack of definitions currently offered, however, based on expanding, evolving, and sometimes conflicting, dimensions. The purpose of this paper is to investigate various emerging definitional elements of local foods to determine which elements may be as important to food shoppers today as the prevailing food miles definition.

A shopper survey is fielded and repeated measures ANOVA conducted to measure the relative importance of various definitional elements, assess where shoppers expect to acquire local foods, the price premium they are willing to pay, and differences that may exist across customer groups.

The study finds that consumers do consider other definitional elements as important as distance in their definition of local foods and they expect to find them in secondary outlets beyond farmers markets and the produce department. Consumers are willing to pay a price premium and there are differences across light, medium, and heavy users.

This study provides researchers with an expanded and clearer definition of local foods for future research and practitioners with guidance on what shoppers expect and value today and how to better source, merchandise, and promote local foods.

By combining definitional elements from across industry, government, and academia and analyzing them together, this study offers a more comprehensive definition of local foods and consumer expectations.

The purpose of this study is to investigate the impact of an industry’s connectedness to foreign countries on knowledge sourcing.

The authors examine the research model through probit regression techniques to the 472,303-patent data across 16 industries derived from the United States Patent and Trademark Office.

The results suggest that international connectedness increases the accessibility of foreign knowledge and helps the accumulation of technological capability. Thus, this paper provides a better understanding that international connectedness can be critical for exploiting knowledge dispersed worldwide and influencing intra- and interindustry knowledge-sourcing behavior in the home country.

While prior studies have mainly paid attention to the relationship between parents and subsidiaries in foreign countries for international knowledge sourcing, the authors attempt to analyze international and local knowledge sourcing with a broader set of knowledge sourcing channels at an aggregate level. By considering an industry’s export intensity and inward foreign direct investment, this study reveals specifically how the extent of an industry’s international connectedness influences knowledge sourcing from both abroad and locally.

The aim of the paper is to present how sustainability as a concept supports the use of locally‐sourced food in public catering, and the issues that arise from that policy objective and their implications for suppliers and purchasers.

First, the paper explains the characteristics of local food chains and the concept of sustainability based on a literature review. It then outlines the stages of the food procurement process in public food catering in Finland, focussing on the delivery of potatoes from a local producer to a public caterer providing school meals. The case study identifies the dimensions of sustainability.

First, the criteria defining sustainability remain unclear. Second, to overcome the cost disadvantages brought about by its small‐scale production and high delivery costs, locally‐sourced food should add some extra value. Short food supply chains have advantages over long ones, however, they are not sustainable per se.

The research is descriptive in nature and rests on action research implemented during 2004‐2007. The study does not provide any quantitative analysis nor can it be statistically generalised.

Measuring the impact of sustainability in a public tendering process remains challenging, as an unambiguous definition of sustainability criteria is lacking. Further, sustainable procurement practices would improve collaborative relationships.

This paper complements the current discussion on sustainability and local food. Provision of free school meals is now a rare phenomenon, and has recently stirred widespread interest. Finland's continuing commitment to providing free school meals thus provides a very specific context in which to study the problems of food sourcing in the public sector.

Attracted by the easier access to local markets, many foreign companies have formed manufacturing joint ventures in China. One of the key elements of successful international joint venture (IJV) manufacturing in China is the management of suppliers, since the supply chain plays an essential role in contributing to both the quality of finished products and controlling costs. Supplier management in Chinese IJVs is an under‐researched area and so an exploratory study of five manufacturers was conducted using a case study approach. The results show the difficulties faced by IJVs which are in attempting to maintain quality levels at the same time as trying to reduce costs by purchasing materials and components locally. In addition to identifying important implications for companies, the research shows the need for further investigation of the contextual aspects of good supplier management.