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1 – 10 of over 28000Abstract
Purpose
The main purpose of this paper is to compare the differences between the small and medium‐sized enterprises (SMEs) and the large enterprises (LEs) of the Hong Kong clothing industry in terms of the adoption of production sourcing strategies and buyer‐supplier relationships.
Design/methodology/approach
A questionnaire survey was conducted among 120 small to large‐sized clothing firms in Hong Kong.
Findings
The results show that there were certain differences between SMEs and LEs with regard to production sourcing: LEs are more able to disperse production globally; LEs are more likely to adopt single sourcing, while SMEs prefer multiple sourcing; SMEs tend to use a combined strategy of in‐ and outsourcing, whereas LEs select either insourcing or outsourcing; and LEs are more likely to develop a formal strategic alliance with their trading partners.
Research limitations/implications
The adoption of sourcing strategies and buyer‐supplier relationships may change over time: future research should also be directed towards collecting longitudinal data.
Practical implications
To compete with LEs, SMEs have to ally strategically with their trading partners. Adopting sourcing strategies in a more cooperative manner is therefore imperative. Nonetheless, both SMEs and LEs should exploit their advantages by adopting proper or innovative combinations of sourcing strategies and buyer‐supplier relationships, and hence their respective disadvantages can be offset and their competitive advantages can be enhanced.
Originality/value
This paper examines the differences between SMEs and LEs in the adoption of production sourcing strategies and buyer‐supplier relationships. This study provides an implication for the management of SMEs and LEs in terms of production sourcing.
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As more evidence indicates that a corporation is very much defined by its purchases and benefited by its close partnership with the suppliers, the sourcing decision becomes…
Abstract
As more evidence indicates that a corporation is very much defined by its purchases and benefited by its close partnership with the suppliers, the sourcing decision becomes increasingly important in the firm’s growth and profit. This paper synthesizes the available sourcing alternatives into four categories, namely multiple sourcing, single sourcing, single/dual hybrid or network sourcing, and global sourcing, and provides a comprehensive review of these purchasing methods based on extensive literature. Besides the discussion of the pros and cons, the paper focuses on the underlying factors that determine the preference and suitability of each sourcing option. In addition, with the note that numerous companies are switching to do business on a global basis, we attempt to use China as an example to examine global sourcing from the standpoints of both buyer and supplier.
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The strategy combination of single sourcing and long‐term contractsis rapidly becoming the norm in progressive purchasing functions. Theimplications of this radical development is…
Abstract
The strategy combination of single sourcing and long‐term contracts is rapidly becoming the norm in progressive purchasing functions. The implications of this radical development is examined by disentangling the advantages and disadvantages of the separate strategies before recombining them to provide a generally applicable sourcing/contracting decision‐making model. The conclusions indicate that, contrary to current practice, large, powerful purchasing functions should avoid the use of single sourcing and long‐term contracts.
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Chris Lonsdale, Joe Sanderson and Ali Esfahbodi
The aim of this paper is to enhance understanding of the use of sourcing teams (STs) by organisations in their procurement and supply chain management. The paper achieves this by…
Abstract
Purpose
The aim of this paper is to enhance understanding of the use of sourcing teams (STs) by organisations in their procurement and supply chain management. The paper achieves this by exploring, within the context of the supply chain directorate of a global aerospace manufacturing company (GAMC), both the relationship between sourcing teamwork effectiveness (TE) and sourcing task-work effectiveness (TA) and the relationship between individual team member knowledge, skills and abilities (KSAs) and TE.
Design/methodology/approach
The authors develop a theoretical model positing positive links between both KSAs and TE and TE and TA. The model is empirically validated using partial least squares structural equation modelling in a survey of 108 ST members from a GAMC.
Findings
The authors identify that, within GAMC, four of five KSAs drive TE and further discover the direct effects of TE on improved TA. Additionally, the authors observe within GAMC the indirect effects of KSAs on TA cascading through TE.
Research limitations/implications
Limitations include the use of a single firm and self-report measures for data collection. In spite of this, the paper has numerous research implications. Previous research on STs has combined factors related to TE and TA. In this paper, TE and TA were disaggregated, and the relationships between them were explored. The relationships were found to be positive within GAMC, a finding that strengthens the evidence base supporting the use of STs by organisations in their procurement and supply chain management. In addition, the paper also strengthened the evidence base regarding the importance of KSAs to TE, which complements existing research highlighting the importance of team-level factors and individual technical attributes.
Practical implications
The findings from GAMC suggest that executives/managers should take an individual as well as a team-level perspective when developing STs and should consider KSAs as well as technical knowledge when judging individuals’ suitability for inclusion within an ST. There are established KSA tests in the literature that could be used by managers for this task. The findings also inform executives/managers that TE matters for TA and needs attention and investment, especially where sourcing tasks concern high-value areas and/or critical incidents within supply chains.
Originality/value
To the best of the authors’ knowledge, this is the first paper to explore the relationship between TE and TA. Establishing that this relationship is a positive one provides critically important evidence regarding the efficacy of STs, which are widely used within procurement and supply chain management. It is also a rare study looking at TE from the perspective of individual team member KSAs, with further positive relationships revealed. Both findings enhance what is a very limited literature on a widely used practice within procurement and supply chain management.
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Dirk Godenau, Gloria Martin-Rodriguez, Jose Ignacio González Gómez and Jose Juan Caceres-Hernandez
This paper aims to deal with the grape sourcing strategies of wineries in the Canary Islands.
Abstract
Purpose
This paper aims to deal with the grape sourcing strategies of wineries in the Canary Islands.
Design/methodology/approach
Sourcing decisions are analysed from official registers of transactions between wineries and their external suppliers. The main sources of information are harvest reports submitted by wineries containing data about observable dimensions of their purchasing decisions. The general behaviour in the wine-grape zones that make up the grape market in the Canary Islands is described, and different strategies of individual wineries are revealed. Grape purchasing decisions are interpreted in terms of the potential explanatory factors involved in the undeclared objectives of wineries’ sourcing strategies. Two research questions are considered in this study: the spatial dimension, which refers to plot location, and the social dimension, which refers to the relationships between wineries and winegrowers.
Findings
The location of grape producers is a key factor in achieving the desired wine quality for wineries. The sourcing strategy of wineries is also influenced by size, but the impact of size varies depending on the short and long-term objectives of wineries.
Originality/value
Typically the literature on grape sourcing strategies relies on interviews with winemakers. However, this paper analyses wineries’ sourcing decisions based on records and reports that reveal their decisions in the specific context of the Canary Islands.
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The prospect of Sub-Saharan Africa (SSA) as an apparel-sourcing base for US fashion companies has been a growing heated debate among academia, industry practitioners and…
Abstract
Purpose
The prospect of Sub-Saharan Africa (SSA) as an apparel-sourcing base for US fashion companies has been a growing heated debate among academia, industry practitioners and policymakers. This study aims to evaluate SSA countries’ readiness to serve as an alternative sourcing destination to Asia for US fashion companies, focusing on comparing the similarities and differences of US apparel imports from these two regions at the product level.
Design/methodology/approach
This study was based on a statistical analysis of detailed product features and assortment information of thousands of apparel items at the stock-keeping unit level sold by US retailers between January 2021 and December 2023.
Findings
US fashion companies seemed to leverage SSA countries as suppliers of “niche products,” such as those relatively simple and basic apparel categories containing African cultural elements and targeting the luxury and premium market segment. However, the range of apparel products available for US fashion companies to source from the SSA region remained significantly more limited than those from Asia. Also, US apparel imports from SSA countries were primarily made of cotton and polyester, with less use of other fiber types, including nylon, rayon, viscose, wool and those made from recycled textile materials.
Originality/value
The study’s findings provided fresh insights into why US fashion companies sourced from SSA countries and the specific types of products they were sourcing, going beyond existing studies based on macro trade statistics. The results also deepened the understanding of SSA countries’ competitiveness as an apparel-sourcing destination and their potential to serve as an alternative to sourcing from Asia, particularly from a unique product perspective.
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The purpose of this study is to develop and validate the business streamlining (BS) model proposed in 2017.
Abstract
Purpose
The purpose of this study is to develop and validate the business streamlining (BS) model proposed in 2017.
Design/methodology/approach
This study/paper develops and validates the qualitatively generated BS model, a conceptual model of service sourcing relationships, by testing it quantitatively. A survey was sent to chief exective officers, chief purchasing officers or facility managers in 764 private or public companies in Sweden with an annual turnover exceeding € 10m. The categories were tested and analyzed by means of factor analysis.
Findings
The BS model for managing service sourcing processes was confirmed to be significant overall, meaning that it is applicable irrespective of service sourcing context. The efficiency pursuing (EP) was found to have an interlinking role that calls for a revision of the BS model. Furthermore, the four categories tended to load pairwise.
Research limitations/implications
Although this cross-sectional study confirms the relevance of the BS model for managing service-sourcing processes, further studies should examine both the relative significance of its categories in different service-sourcing contexts and why the four main categories tend to pair.
Practical implications
The results support that the model is flexible and adaptable to a wide range of service-sourcing circumstances. Irrespective of the relative complexity of facility management (FM) sourcing processes, the categories can be adapted to fit the service sourcing context. Thus, it can be used as a tool to analyze and facilitate strategic decision-making.
Originality/value
The paper validates that the BS model can represent the dynamics of different service-sourcing processes, regardless of the complexity of the context.
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Monica Ren, Richa Chugh and Hongzhi Gao
A key challenge for exporters and international marketing/purchasing managers is formulating strategic responses to deal with geopolitical disruptions during a trade war between…
Abstract
Purpose
A key challenge for exporters and international marketing/purchasing managers is formulating strategic responses to deal with geopolitical disruptions during a trade war between superpowers. While past studies provide insightful analysis of the influence of changes in the institutional environment (regulatory pressures) on national and firm-level trade activities, they tend to ignore the association between inward (sourcing) or outward (export) international activities of firms during a trade war. In this study, we aim to explore various strategic options employed by third-party SME exporters in response to geopolitical disruptions, institutional pressures and constraints during a trade war.
Design/methodology/approach
We adopted a qualitative methodology and applied a hermeneutical approach in collecting, analysing and theorising interview findings. We conducted interviews with 15 owners or senior managers from 12 Australian and New Zealand exporters that exported or sourced significantly from at least one party of the trade war, the USA or China, between 2018 and 2020.
Findings
Our study developed a typology of fencing vs. balancing for explaining third-party SME exporters’ response strategies in terms of export market and international sourcing locations during a trade war. Fencing strategy centres on location choice decisions based on a fence or a secure buffer zone. Balancing strategy focuses on leveraging opportunities outside the conflict zone, i.e. third-party countries. Our study finds that exporters’ location choice decisions are influenced by a number of institutional factors during the trade war.
Research limitations/implications
Firstly, our study examined only the early phase of the trade war under the “Trump” era. Future research may consider a longitudinal study design that examines exporters’ responses to global political uncertainty over a longer term. Secondly, we chose Australia and New Zealand as the focal context of this study. Future research could investigate exporters from other third-party countries that have different institutional conditions during the US-China trade war.
Practical implications
Firstly, an exporting firm should monitor and assess closely the wider changes in international relations between their home country’s major security partner and major trading partner, and the impact of these changes on the political risks of operating in international locations. Secondly, as the trade war intensifies, the fencing option needs to be given a greater weight than the balancing option in the strategic decision making of an exporter from a third-party country. Lastly, we encourage marketers and managers to reflect on and differentiate short-term and long-term benefits in strategic market-sourcing location decisions.
Originality/value
Our study makes a pioneering effort to theorise the linkages between institutional factors and the combined evaluation of export market selection and sourcing location selection choices under global political uncertainty based on the institution-based view. We present a conceptual framework highlighting the importance of institutional avoidance, embeddedness, comparative institutional advantages and multiple institutional logics for SME exporters’ international location selections during the trade war. Furthermore, we combine these institutional factors into two overarching constructs namely institutional buffer and institutional pluralism.
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Thomas Koerber and Holger Schiele
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing…
Abstract
Purpose
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing decisions and global trends. This study analyzed various country perceptions to reveal their influence on sourcing decisions. The country of origin (COO) theory explains why certain country perceptions and images influence purchasing experts in their selection of suppliers.
Design/methodology/approach
This study used a two-study approach. In Study 1, the authors conducted discrete choice card experiments with 71 purchasing experts located in Europe and the USA to examine the importance of essential decision factors for global sourcing. Given the clear evidence that location is a factor in sourcing decisions, in Study 2 the authors investigated purchasers’ perceptions and images of countries, adding country ranking experiments on various perceived characteristics such as quality, price and technology.
Findings
Study 1 provides evidence that the purchasers’ personal relationship with the supplier plays a decisive role in the supplier selection process. While product quality and location impact sourcing decisions, the attraction of the buying company and cultural barriers are less significant. Interestingly, however, these factors seem as important as price to respondents. This implies that a strong relationship with suppliers and good quality products are essential aspects of a reliable and robust supply chain in the post-COVID-19 era. Examining the locational aspect in detail, Study 2 linked the choice card experiments with country ranking experiments. In this study, the authors found that purchasing experts consider that transcontinental countries such as Japan and China offer significant advantages in terms of price and technology. China has enhanced its quality, which is recognizable in the country ranking experiments. Therefore, decisions on global sourcing are not just based on such high-impact factors as price and availability; country perceptions are also influential. Additionally, the significance of the locational aspect could be linked to certain country images of transcontinental suppliers, as the COO theory describes.
Originality/value
The new approach divides global sourcing into transcontinental and European sourcing to evaluate special decision factors and link these factors to the locational aspect of sourcing decisions. To deepen the clear evidence for the locational aspect and investigate the possible influence of country perceptions, the authors applied the COO theory. This approach enabled authors to show the strong influence of country perception on purchasing departments, which is represented by the locational effect. Hence, the success of transcontinental countries relies not only on factors such as their availability but also on the purchasers’ positive perceptions of these countries in terms of technology and price.
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Mala Ali Modu, Maimunah Sapri and Zafirah Ab Muin
The provision of facilities management (FM) services, facilitated by a well-suited sourcing strategy, significantly influences the optimization of dwelling unit performance…
Abstract
Purpose
The provision of facilities management (FM) services, facilitated by a well-suited sourcing strategy, significantly influences the optimization of dwelling unit performance, augmentation of occupants’ living experiences and the establishment of a secure and comfortable environment. Consequently, this study aims to examine the sourcing approach used for delivering FM services in social housing within Nigeria’s semi-arid climate and to assess the effectiveness of the chosen sourcing approach in the provision of FM services.
Design/methodology/approach
Data collection involved one-on-one interviews conducted with five principal/senior staff members of the Borno State Housing Corporation in Maiduguri, Northern Nigeria. For data analysis, the NVivo R1 software package and Stata 13.0 were used. Thematic analysis was applied to the data, and the findings were presented through narrations and direct quotes from participants. Logistic regression analysis was subsequently used to assess the effectiveness of the adopted in-house approach in providing FM services in the context of social housing.
Findings
Administrators of social housing in the semi-arid climate of Nigeria exclusively adopted an in-house sourcing approach for providing FM services. Nevertheless, the in-house approach was conclusively determined to be ineffective in delivering FM services within the specific context of social housing in the semi-arid climate of Nigeria.
Originality/value
This investigation centred on examining the sourcing strategy used by social housing administrators for delivering FM services in social housing within a semi-arid climate of Nigeria. Additionally, the study delved into evaluating the efficacy of the chosen sourcing approach in the actual provision of FM services.
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