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The purpose of this paper is to develop a purchasing-logistics integration (PLI) conceptualization along two dimensions: mutual responsibility and integrative efforts. This conceptualization is then tested as to whether it provides any insights for supplier performance.

Information-Processing Theory is used to posit hypotheses linking the dimensions of PLI with various measures of supplier performance. Hypotheses are then tested with a dyadic data set of purchasing and logistics managers, using multiple regression methods.

Purchasing managers found mutual responsibility to positively influence supplier delivery speed, whereas logistics managers found it to positively influence supplier price performance. Generally speaking, purchasing managers perceived a stronger linkage between formal integrative efforts (liaison roles and joint reward systems) and supplier performance, whereas logistics managers perceived this linkage to be stronger for informal integrative efforts such as information exchange and collaboration.

Study results are cross-sectional in nature and consist of three major industry groupings. The dyadic data were analyzed separately to avoid significant data loss.

Supply chain managers will find the areas where purchasing and logistics managers overlap in their perceptions (as well as where they differ) useful. In addition, an understanding of how PLI influences supplier performance should help improve organizational effectiveness.

PLI is a highly important, yet understudied, internal connection. This study provides a useful framework in helping academics and practitioners better understand this crucial internal connection, and how it relates to the performance extracted from suppliers.

One strategy for dealing with the increasing problem of cross‐border movement is to involve third‐party specialists. Reports on an investigation of third‐party use in maquiladora or twin‐plant logistics across the US‐Mexico border. A mail survey of 250 companies operating in the El Paso‐Juarex area was carried out. Results showed that the surveyed firms used third parties more than US firms in general.

Source location decision making is a contemporary problem facing many businesses as they globalize their supply chains. This paper seeks to empirically determine the influence of culture on the industrial procurement manager's perception of the different characteristics of potential global sourcing locations, with a view to integrating the influence of culture operating at different levels into a global sourcing location decision framework; thereby enhancing managerial insights to the role played by culture in making decisions.

The paper applies factor analysis and multiple regression on a survey sample of 181 responses gathered from native eastern and western procurement managers. The authors investigate how 12 procurement attributes drawn from the literature relate to each other with respect to low‐cost regions.

The research results show that procurement managers select regions for low‐cost sourcing based on both specific measures and individual and/or group perceptions of the region, whether these perceptions are correct or not. This paper recommends a novel way to look at culture, as a bias of thought that impacts decision making. The research has clearly shows that cultural orientation impacts geographical perceptions which in turn impact criteria ratings of locations.

The authors have demonstrated that a two‐stage supplier selection decision model is justified as such a model appears to be a practical reality even though not advocated by previous sourcing literature and research. The authors point out the need for both western and eastern managers to be aware of their differences in geographic evaluation, as this could be an effective strategy for minimizing the effects of prejudged reality.

In this research culture is viewed as a fundamental decision‐making construct. Most research on this construct is found in the social psychology literature. Applying these theories to the business discipline of sourcing is both novel and inter‐disciplinary in nature.

There is good evidence that the shift in global sourcing is toward so‐called “low cost country suppliers.” Yet conditions in these countries are often not well‐known. At the same time, best practices in integrated supply dictate a multi‐faceted decision, rather than basing supplier location on a single attribute say, labor cost alone. With these issues in mind, a research project was formulated with two primary objectives. First, the authors wanted to compile the knowledge and perceptions of purchasing managers regarding low cost regions and their capabilities and to reflect the multiple factors involved in current sourcing strategies and supplier selection decisions in these low cost geographies. Second, the authors wanted to compare managers' subjective perceptions with objective data regarding attributes of sourcing locations to identify the relationship between perceptions and reality. This paper aims to explore the issues.

The authors surveyed over 100 sourcing professionals on their perceptions of various low cost sourcing alternatives. Perceptual mapping techniques were used to combine the rankings on some 12 different attributes to visualize how the various attributes relate to each other and how the low cost regions compare when rated against sourcing managers' ideal perceptions.

The research results show that procurement managers select regions for low cost sourcing based on both specific measures and individual and/or group perceptions of the region, whether these perceptions are correct or not. This paper probes these perceptions. Also the paper compares these subjective perceptions with objective data to show that cultural stereotypes may bias managers' perception of location‐specific characteristics. The paper closes with implications for procurement managers and opportunities for further research.

The authors have demonstrated that purchasing managers choose sourcing locations using multiple criteria instead of only focusing on cost. But some perceptions are biased by cultural stereotypes and do not reflect reality. This suggests that managers have to be careful when using their subjective judgment in choosing sourcing locations.

The authors believe that visual representations of alternative sourcing options have great potential to improve the efficiency of cross‐disciplinary and multi‐company teams that are increasingly responsible for global sourcing strategies. Comparing managers' perception with objective data of location attributes shows that mangers' perception may be biased by cultural stereotypes.

The outsourcing decision considers the issue of whether an organization should perform certain activities internally or purchase these services from third parties. One of the key issues in outsourcing is the potential for cost reduction. This paper suggests the use of total cost of ownership (TCO) analysis as an excellent approach for understanding the true cost implications of the outsourcing decision, rather than focusing on price.

As business firms and even public sector operations opt to run leaner operating systems, the question of outsourcing becomes an increasingly popular topic for discussion. There are substantial differences between countries and between industries on what is considered “best practice” in outsourcing. There is ample evidence that some of these views on outsourcing are changing and will continue to change during the 1990s. This paper offers eight central propositions on logistics outsourcing with special emphasis on warehousing. The paper briefly reviews selected foundation literature in the area and then shapes the eight propositions. Findings are reviewed from an empirical study of U.S. firms. Among the findings are that there are significant differences across industries in their use of outsourcing. Each of the propositions are examined in turn, the evidence reviewed and conclusions and implications presented. The thrust of the findings suggest a new level of consideration for outsourcing as an element of logistics strategy.

The purpose of this paper is to introduce and validate two new constructs with the potential to sharpen our understanding of how and why firms integrate their internal supply chains and assess the governance structure of their supply chains. The first construct, organizational alignment (OA), is a reflective scale measuring the extent to which upper management attempts to foster integration between internal supply chain functions. The second, supply chain governance structure (SCGS), is a formative index, and is a first attempt at developing a measurement instrument to assess SCGS along multiple dimensions.

Following a literature review, measures of OA and SCGS are conceptualized. These instruments are used to collect data, after which they are refined and validated through parallel scale development (OA) and index construction (SCGS) processes.

OA shows acceptable content and construct validity, and SCGS shows acceptable results for content and item specification, as well as multicollinearity.

OA and SCGS may provide some insight into how to promote better internal supply chain integration within the firm, and may allow for an assessment of the governance structure of the firm's supply chain. In different industries and at different times, this knowledge may prove useful in supply chain design and supply base optimization decisions.

These scales have considerable applicability in logistics and supply chain management research. Together, they represent initial attempts to assess upper management influence on internal supply chain alignment (OA), and to assess the governance structure of a firm's supply chain.

Increasingly, sourcing decisions are routinely including contract manufacturers and suppliers in developing countries. While many studies have researched and identified the criteria for selecting suppliers in general terms, there has been a dearth of studies on the criteria for choosing amongst suppliers in developing countries including suppliers in Eastern Europe, Asia and Africa. The purpose of this paper is to investigate the criteria for choosing amongst suppliers in different developing countries.

The methodology consists of a series of case studies involving six firms some of which are sourcing from developing countries and some that are based in developing countries and supply lead firms in developed countries.

Cost, physical and cultural proximity, political factors and reliability are found to be the primary criteria for sourcing decisions that include suppliers in Eastern Europe, Asia and Africa. Further, the paper identifies why these criteria are used and the drawbacks in using them.

A key limitation of the study is generalizability. Based on the use of a case study methodology, caution should be exercised in generalizing the results of the study.

In spite of the limitations, this paper contributes to the extant literature on sourcing from developing countries. It provides valuable insights for global purchasing managers interested in sourcing from developing countries in terms of the criteria for choosing a particular location for sourcing and selecting a supplier within a given location.

Qualitative results of a benchmarking process in logistics areas between companies operating in Argentina are presented. A description of the main logistics processes reengineered by these companies is done and some inferences are taken from the study. The companies are finally analyzed according to another benchmarking process generated in Michigan State University, which leads to a discussion on how companies can be characterized as world class in emerging countries.