In an era of global sourcing, the multinational firm′s success often hinges on the most appropriate selection of its foreign suppliers. International supplier selection, however, is very complicated and risky owing to a variety of uncontrollable and unpredictable factors affecting the decision. These factors may include political situations, tariff barriers, cultural and communication barriers, trade regulations and agreements, currency exchange rates, cultural differences, ethical standards, quality standards and so forth. Nevertheless, a vast majority of the purchasing literature still focuses on the domestic aspects and neglects international supplier selection research. Proposes multiple attribute utility theory which can help purchasing professionals to formulate viable sourcing strategies in the changing world marketplace.
International Journal of Physical Distribution & Logistics Management – Emerald Publishing
Published: Jun 1, 1994
Keywords: Globalization; Multinationals; Purchasing; Sourcing; Supplier evaluation; Suppliers
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