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Criteria for sourcing from developing countries

Criteria for sourcing from developing countries Purpose – 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. Design/methodology/approach – 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. Findings – 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. Research limitations/implications – 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. Originality/value – 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Outsourcing: An International Journal Emerald Publishing

Criteria for sourcing from developing countries

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Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
1753-8297
DOI
10.1108/17538290910973367
Publisher site
See Article on Publisher Site

Abstract

Purpose – 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. Design/methodology/approach – 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. Findings – 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. Research limitations/implications – 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. Originality/value – 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.

Journal

Strategic Outsourcing: An International JournalEmerald Publishing

Published: Jun 26, 2009

Keywords: Developing countries; Sourcing; Purchasing; Manufacturing systems; Supply chain management

References