Skip to main content
SpringerLink
Log in

Supply market attractiveness: Employing FDI insights to expand the global sourcing criteria set

  • Chapter
  • First Online:
Supply Management Research

Part of the book series: Advanced Studies in Supply Management ((ASSM))

  • 4370 Accesses

Zusammenfassung

Given an increased focus on globalization and the worldwide procurement of goods, firms have to make decisions about which target region to source from. Since regional characteristics can have an impact on short as well as long term success of sourcing performances, purchasers are required to consider carefully whether regions have advantages over others. In this paper, we address regional characteristics that guide sourcing decisions, factors that influence the perception of supply market attractiveness among purchasers. Based on the theories of global sourcing and foreign direct investment, we provide an overview of attributes that are relevant according to literature. In particular, our contribution is to extend the criteria set of global sourcing by employing insights of foreign direct investment (FDI) literature. Further, through building on interviews and discussions with practitioners, we show what purchasers actually consider an attractive market. We conclude by providing a framework for the selection of a supply market and show how knowledge of FDI can support global sourcing decision making.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 44.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 59.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Literature

  • Acs, Z. & Storey, D. 2004. Introduction: Entrepreneurship And Economic Development.

    Google Scholar 

  • Ambroziak, A. 2014. New Cohesion Policy Of The European Union In Poland. Springer.

    Google Scholar 

  • Arauzo-Carod, J. M., Liviano-Solis, D. & Manjón-Antolín, M. 2010. Empirical Studies In Industrial Location: An Assessment Of Their Methods And Results*. Journal Of Regional Science, 50, 685–711.

    Google Scholar 

  • Arnold, U. 1989. Global Sourcing: An Indispensable Element In Worldwide Competition. Management International Review, 14–28.

    Google Scholar 

  • Arnold, U. 1997. Beschaffungsmanagement, Stuttgart, Schäffer-Poeschel.

    Google Scholar 

  • Basile, R. & Kayam, S. 2015. Empirical Literature On Location Choice Of Multinationals. Complexity And Geographical Economics. Springer.

    Google Scholar 

  • Bénassy-Quéré, A., Coupet, M. & Mayer, T. 2007. Institutional Determinants Of Foreign Direct Investment. The World Economy, 30, 764–782.

    Google Scholar 

  • Böckem, S. & Tuschke, A. 2010. A Tale Of Two Theories: Foreign Direct Investment Decisions From The Perspectives Of Economic And Institutional Theory. Schmalenbach Business Review, 62, 260–290.

    Google Scholar 

  • Botrić, V. & Škuflić, L. 2006. Main Determinants Of Foreign Direct Investment In The Southeast European Countries. Transition Studies Review, 13, 359–377.

    Google Scholar 

  • Bregman, R., Peng, D. X. & Chin, W. 2015. The Effect Of Controversial Global Sourcing Practices On The Ethical Judgments And Intentions Of Us Consumers. Journal Of Operations Management, 36, 229–243.

    Google Scholar 

  • Brixy, U. & Grotz, R. 2007. Regional Patterns And Determinants Of Birth And Survival Of New Firms In Western Germany. Entrepreneurship And Regional Development, 19, 293–312.

    Google Scholar 

  • Chaudhuri, S. & Mukhopadhyay, U. 2014. Foreign Direct Investment In Developing Countries: A Theoretical Evaluation, Springer.

    Google Scholar 

  • Chen, H. & Chen, T.-J. 1998. Network Linkages And Location Choice In Foreign Direct Investment. Journal Of International Business Studies, 445–467.

    Google Scholar 

  • Cho, J. & Kang, J. 2001. Benefits And Challenges Of Global Sourcing: Perceptions Of Us Apparel Retail Firms. International Marketing Review, 18, 542–561.

    Google Scholar 

  • Crozet, M., Mayer, T. & Mucchielli, J.-L. 2004. How Do Firms Agglomerate? A Study Of Fdi In France. Regional Science And Urban Economics, 34, 27–54.

    Google Scholar 

  • Dumludag, D., Saridogan, E. & Kurt, S. Determinants Of Foreign Direct Investment: An Institutionalist Approach. Seventh Conference Of The European Historical Economics Society, Lund University, 2007.

    Google Scholar 

  • Dunning, J. H. 1998. Location And The Multinational Enterprise: A Neglected Factor? Journal Of International Business Studies, 45–66.

    Google Scholar 

  • Dunning, J. H. & Lundan, S. M. 2008. Multinational Enterprises And The Global Economy, Cheltenham, Edward Elgar Publishing.

    Google Scholar 

  • Dyer, J. H. & Singh, H. 1998. The Relational View: Cooperative Strategy And Sources Of Interorganizational Competitive Advantage. Academy Of Management Review, 23, 660–679.

    Google Scholar 

  • Ellram, L. M., Tate, W. L. & Petersen, K. J. 2013. Offshoring And Reshoring: An Update On The Manufacturing Location Decision. Journal Of Supply Chain Management, 49, 14–22.

    Google Scholar 

  • Fern, E. F. 1982. The Use Of Focus Groups For Idea Generation: The Effects Of Group Size, Acquaintanceship, And Moderator On Response Quantity And Quality. Journal Of Marketing Research, 1–13.

    Google Scholar 

  • Gripsrud, G. & Benito, G. R. 2005. Internationalization In Retailing: Modeling The Pattern Of Foreign Market Entry. Journal Of Business Research, 58, 1672–1680.

    Google Scholar 

  • Handfield, R. B. 1994. Us Global Sourcing: Patterns Of Development. International Journal Of Operations & Production Management, 14, 40–51.

    Google Scholar 

  • Handfield, R. B. & Nichols, E. L. 2004. Key Issues In Global Supply Base Management. Industrial Marketing Management, 33, 29–35.

    Google Scholar 

  • Hausmann, U. Neither Industrial District Nor Innovation Milieu: Entrepreneurs And Their Contexts. An Actor-Oriented Framework And Case Studies From Greater London And Zurich. Paper Prepared For The 36th Congress Of The European Regional Science Association. August, 1996. 26–30.

    Google Scholar 

  • Hoffmann, P. 2012. Innovative Supply Risk Management. Supply Management Research. Springer.

    Google Scholar 

  • Holcomb, T. R. & Hitt, M. A. 2007. Toward A Model Of Strategic Outsourcing. Journal Of Operations Management, 25, 464–481.

    Google Scholar 

  • Horn, P., Schiele, H. & Werner, W. 2013. The “Ugly Twins”: Failed Low-Wage-Country Sourcing Projects And Their Expensive Replacements. Journal Of Purchasing And Supply Management, 19, 27–38.

    Google Scholar 

  • Koo, J. 2007. Determinants Of Localized Technology Spillovers: Role Of Regional And Industrial Attributes. Regional Studies, 41, 995–1011.

    Google Scholar 

  • Kotabe, M. & Mudambi, R. 2009. Global Sourcing And Value Creation: Opportunities And Challenges. Journal Of International Management, 15, 121–125.

    Google Scholar 

  • Kotabe, M. & Murray, J. Y. 2004. Global Sourcing Strategy And Sustainable Competitive Advantage. Industrial Marketing Management, 33, 7–14.

    Google Scholar 

  • Krugman, P. & Venables, A. J. 1995. Globalization And The Inequality Of Nations. National Bureau Of Economic Research.

    Google Scholar 

  • Lavie, D. 2006. The Competitive Advantage Of Interconnected Firms: An Extension Of The Resource-Based View. Academy Of Management Review, 31, 638–658.

    Google Scholar 

  • Lewin, J. E. & Sager, J. K. 2009. An Investigation Of The Influence Of Coping Resources In Salespersons’ Emotional Exhaustion. Industrial Marketing Management, 38, 798–805.

    Google Scholar 

  • Lorentz, H., Töyli, J., Solakivi, T. & Ojala, L. 2015. The Effect Of Low-Cost Country Sourcing On Supply Chain Administration Cost. International Journal Of Logistics Research And Applications, 18, 1–15.

    Google Scholar 

  • Maltz, A., Carter, J. R. & Maltz, E. 2011. How Managers Make Sourcing Decisions About Low Cost Regions: Insights From Perceptual Mapping. Industrial Marketing Management, 40, 796-804.

    Google Scholar 

  • Martin, X., Swaminathan, A. & Mitchell, W. 1998. Organizational Evolution In The Interorganizational Environment: Incentives And Constraints On International Expansion Strategy. Administrative Science Quarterly, 566–601.

    Google Scholar 

  • Monczka, R., Handfield, R., Giunipero, L. & Patterson, J. 2009. Purchasing And Supply Chain Management, Singapore, Cengage Learning.

    Google Scholar 

  • Naghavi, A., Spies, J. & Toubal, F. 2011. International Sourcing, Product Complexity And Intellectual Property Rights. Nota Di Lavoro//Fondazione Eni Enrico Mattei: Economy And Society.

    Google Scholar 

  • Nassimbeni, G. 2006. International Sourcing: Empirical Evidence From A Sample Of Italian Firms. International Journal Of Production Economics, 103, 694–706.

    Google Scholar 

  • Paul, D. L. & Wooster, R. B. 2010. An Empirical Analysis Of Motives For Offshore Outsourcing By Us Firms. The International Trade Journal, 24, 298–320.

    Google Scholar 

  • Petersen, K. J., Frayer, D. J. & Scannell, T. V. 2000. An Empirical Investigation Of Global Sourcing Strategy Effectiveness. Journal Of Supply Chain Management, 36, 29.

    Google Scholar 

  • Plaut, T. R. & Pluta, J. E. 1983. Business Climate, Taxes And Expenditures, And State Industrial Growth In The United States. Southern Economic Journal, 99–119.

    Google Scholar 

  • Pournarakis, M. & Varsakelis, N. 2004. Institutions, Internationalization And Fdi: The Case Of Economies In Transition. Transnational Corporations, 13, 77–94.

    Google Scholar 

  • Quintens, L., Pauwels, P. & Matthyssens, P. 2006. Global Purchasing: State Of The Art And Research Directions. Journal Of Purchasing And Supply Management, 12, 170–181.

    Google Scholar 

  • Rasheed, A. A. & Gilley, K. M. 2005. Outsourcing: National-And Firm-Level Implications. Thunderbird International Business Review, 47, 513–528.

    Google Scholar 

  • Rugman, A. M. 1986. New Theories Of The Multxnational Enterprise: An Assessment Of Internalization Theory. Bulletin Of Economic Research, 38, 101–118.

    Google Scholar 

  • Sanders, N. R., Locke, A., Moore, C. B. & Autry, C. W. 2007. A Multidimensional Framework For Understanding Outsourcing Arrangements. Journal Of Supply Chain Management, 43, 3–15.

    Google Scholar 

  • Schiele, H. 2008. Location, Location: The Geography Of Industry Clusters. Journal Of Business Strategy, 29, 29–36.

    Google Scholar 

  • Schiele, H., Horn, P. & Vos, B. 2011. Estimating Cost-Saving Potential From International Sourcing And Other Sourcing Levers: Relative Importance And Trade-Offs. International Journal Of Physical Distribution & Logistics Management, 41, 315–336.

    Google Scholar 

  • Sinha, P., Akoorie, M. E., Ding, Q. & Wu, Q. 2011. What Motivates Manufacturing Smes To Outsource Offshore In China? Comparing The Perspectives Of Sme Manufacturers And Their Suppliers. Strategic Outsourcing: An International Journal, 4, 67–88.

    Google Scholar 

  • Steinle, C. & Schiele, H. 2008. Limits To Global Sourcing?: Strategic Consequences Of Dependency On International Suppliers: Cluster Theory, Resource-Based View And Case Studies. Journal Of Purchasing And Supply Management, 14, 3–14.

    Google Scholar 

  • Trent, R. J. & Monczka, R. M. 2003a. International Purchasing And Global Sourcing-What Are The Differences? Journal Of Supply Chain Management, 39, 26–36.

    Google Scholar 

  • Trent, R. J. & Monczka, R. M. 2003b. Understanding Integrated Global Sourcing. International Journal Of Physical Distribution & Logistics Management, 33, 607–629.

    Google Scholar 

  • Trent, R. J. & Monczka, R. M. 2005. Achieving Excellence In Global Sourcing. Mit Sloan Management Review, 47, 24.

    Google Scholar 

  • Unctad. 2007. World Investment Report: Transnational Corporations, Extractive Industries And Development. Available: http://Unctad.Org/En/Docs/Wir2007p4_En.Pdf [Accessed 29.09.2015].

  • Volberda, H. W., Foss, N. J. & Lyles, M. A. 2010. Perspective-Absorbing The Concept Of Absorptive Capacity: How To Realize Its Potential In The Organization Field. Organization Science, 21, 931–951.

    Google Scholar 

  • Winkler, J. K., Dibbern, J. & Heinzl, A. 2008. The Impact Of Cultural Differences In Offshore Outsourcing – Case Study Results From German–Indian Application Development Projects. Information Systems Frontiers, 10, 243–258.

    Google Scholar 

  • Yeniyurt, S., Henke, J. W. & Cavusgil, E. 2013. Integrating Global And Local Procurement For Superior Supplier Working Relations. International Business Review, 22, 351–362.

    Google Scholar 

  • Yeniyurt, S., Townsend, J. D. & Talay, M. B. 2007. Factors Influencing Brand Launch In A Global Marketplace. Journal Of Product Innovation Management, 24, 471–485.

    Google Scholar 

  • Yin, R. K. 2009. Case Study Research: Design And Methods, Beverly Hills, Ca, Sage Publications.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Management and Governance, University of Twente, 217, NL-7500, Enschede, AE, Niederlande

    Tobias Bohnenkamp & Prof. Dr. Holger Schiele

Authors
  1. Tobias Bohnenkamp
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Prof. Dr. Holger Schiele
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Tobias Bohnenkamp .

Editor information

Editors and Affiliations

  1. Fakultät Wirtschaftswissenschaften, Universität Würzburg Fakultät, Würzburg, Germany

    Ronald Bogaschewsky

  2. Fakultät für WOW, Univ der Bundeswehr München , Neubiberg, Germany

    Michael Eßig

  3. Fakultät Wirtschaftswissenschaften, Technische Universität Dresden , Dresden, Germany

    Rainer Lasch

  4. Universität St. Gallen, St. Gallen, Switzerland

    Wolfgang Stölzle

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer Fachmedien Wiesbaden

About this chapter

Cite this chapter

Bohnenkamp, T., Schiele, H. (2017). Supply market attractiveness: Employing FDI insights to expand the global sourcing criteria set. In: Bogaschewsky, R., Eßig, M., Lasch, R., Stölzle, W. (eds) Supply Management Research. Advanced Studies in Supply Management. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-15280-2_6

Download citation

  • DOI: https://doi.org/10.1007/978-3-658-15280-2_6

  • Published:

  • Publisher Name: Springer Gabler, Wiesbaden

  • Print ISBN: 978-3-658-15279-6

  • Online ISBN: 978-3-658-15280-2

  • eBook Packages: Business and Economics (German Language)

Publish with us

Policies and ethics

Search

Navigation