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Global sourcing in integrated network structures: The case of hybrid purchasing organizations

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  • Trautmann, Gerhard
  • Bals, Lydia
  • Hartmann, Evi
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    Abstract

    An issue for companies in globally competitive markets is to adapt their organizational structures and governance in increasingly complex organizations. At the functional level of purchasing, companies are turning to hybrid purchasing organizations in order to leverage global sourcing benefits. One of the key challenges in this context is to distinguish between categories to be integrated across sites and those that are to remain under the authority of each purchasing location in order to maximize purchasing synergies. This paper presents a purchasing portfolio model that provides a comprehensive view of relevant global synergy dimensions. Based on a literature review, a theoretically-grounded purchasing portfolio model for global sourcing is developed. The theoretical basis stems from information processing theory, organizational buying behavior (OBB) and transaction cost economics. The validity of the model is explored by means of case study research. Complementing the extant literature, the theoretical contribution of the paper lies in not only addressing category selection criteria for exploiting economies of scale, but also for economies of information and learning and economies of process. Furthermore, it provides insights regarding integrated network coordination mechanisms at the functional level of purchasing.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 15 (2009)
    Issue (Month): 2 (June)
    Pages: 194-208

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    Handle: RePEc:eee:intman:v:15:y:2009:i:2:p:194-208

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    Related research

    Keywords: Multinational corporations MNCs Integrated network structure Hybrid organization Global sourcing Purchasing Portfolio model Case study;

    References

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    1. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-61, October.
    2. K Kim & J-H Park & J E Prescott, 2003. "The global integration of business functions: a study of multinational businesses in integrated global industries," Journal of International Business Studies, Palgrave Macmillan, vol. 34(4), pages 327-344, July.
    3. Adenfelt, Maria & Lagerström, Katarina, 2006. "Knowledge development and sharing in multinational corporations: The case of a centre of excellence and a transnational team," International Business Review, Elsevier, vol. 15(4), pages 381-400, August.
    4. Samli, A. Coskun & Browning, John M. & Busbia, Carolyn, 1998. "The Status of Global Sourcing as a Critical Tool of Strategic Planning:: Opportunistic Versus Strategic Dichotomy," Journal of Business Research, Elsevier, vol. 43(3), pages 177-187, November.
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    Citations

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    Cited by:
    1. Knight, Louise & Tu, Yi-Hsi & Preston, Jude, 2014. "Integrating skills profiling and purchasing portfolio management: An opportunity for building purchasing capability," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 271-283.
    2. Yeniyurt, Sengun & Henke, John W. & Cavusgil, Erin, 2013. "Integrating global and local procurement for superior supplier working relations," International Business Review, Elsevier, vol. 22(2), pages 351-362.
    3. Lampel, Joseph & Bhalla, Ajay, 2011. "Living with offshoring: The impact of offshoring on the evolution of organizational configurations," Journal of World Business, Elsevier, vol. 46(3), pages 346-358, July.
    4. Kirchner, Alexander & Labusch, Nils & Lopez Cordoba, Adriana & Sartor, Sebastian & Tumbas, Sanja, Villalon, Enrique & Wiethoff, Sebastian, 2011. "Network e-Volution," ERCIS Working Papers 11, Westfälsche Wilhelms-Universität Münster (WWU) - European Research Center for Information Systems (ERCIS).

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