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Component Sourcing Strategies of Multinationals: An Empirical Study of European and Japanese Multinationals

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  • Paul M Swamidass

    (Auburn University)

  • Masaaki Kotabe

    (The University of Texas at Austin)

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    Abstract

    This is a study of component sourcing decisions of European and Japanese manufacturers for supplying their manufacturing operations in their home countries for export to the U.S. as well as their operations in the United States. Specifically, employing data from seventy-one multinational manufacturers of European and Japanese origin operating in the U.S., the study investigated the determinants of international sourcing decisions. The authors found support for the hypothesis that international sourcing could be explained using international plant location theory. The significance of this finding is that it offers a new theoretical framework to spur much needed research on the topic of international sourcing.© 1993 JIBS. Journal of International Business Studies (1993) 24, 81–99

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 24 (1993)
    Issue (Month): 1 (March)
    Pages: 81-99

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    Handle: RePEc:pal:jintbs:v:24:y:1993:i:1:p:81-99

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    Cited by:
    1. Mol, M.J. & van Tulder, R.J.M. & Beije, P.R., 2002. "Global Sourcing," ERIM Report Series Research in Management ERS-2002-55-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    2. Karjalainen, Katri & Salmi, Asta, 2013. "Continental differences in purchasing strategies and tools," International Business Review, Elsevier, vol. 22(1), pages 112-125.
    3. Javalgi, Rajshekhar (Raj) G. & Dixit, Ashutosh & Scherer, Robert F., 2009. "Outsourcing to emerging markets: Theoretical perspectives and policy implications," Journal of International Management, Elsevier, vol. 15(2), pages 156-168, June.
    4. Mol, Michael J. & Pauwels, Pieter & Matthyssens, Paul & Quintens, Lieven, 2004. "A technological contingency perspective on the depth and scope of international outsourcing," Journal of International Management, Elsevier, vol. 10(2), pages 287-305.
    5. Graf, Michael & Mudambi, Susan M., 2005. "The outsourcing of IT-enabled business processes: A conceptual model of the location decision," Journal of International Management, Elsevier, vol. 11(2), pages 253-268, June.
    6. Shin-Horng Chen & Meng-Chun Liu, 2005. "International R&D Deployment and Locational Advantage of Developing Countries: A Case Study of Taiwan," NBER Chapters, in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 81-108 National Bureau of Economic Research, Inc.
    7. Nassimbeni, Guido, 2006. "International sourcing: Empirical evidence from a sample of Italian firms," International Journal of Production Economics, Elsevier, vol. 103(2), pages 694-706, October.
    8. Mol, Michael J. & van Tulder, Rob J.M. & Beije, Paul R., 2005. "Antecedents and performance consequences of international outsourcing," International Business Review, Elsevier, vol. 14(5), pages 599-617, October.
    9. Hong Y Park, 2000. "Foreign direct investment and global sourcing choices of firms in the US," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(6), pages 211-221.
    10. repec:rdg:wpaper:em-dp2004-15 is not listed on IDEAS
    11. Lanctot, Aldor & Swan, K. Scott, 2000. "Technology acquisition strategy in an internationally competitive environment," Journal of International Management, Elsevier, vol. 6(3), pages 187-215.
    12. Martínez-Noya, Andrea & García-Canal, Esteban, 2011. "Technological capabilities and the decision to outsource/outsource offshore R&D services," International Business Review, Elsevier, vol. 20(3), pages 264-277, June.
    13. 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.
    14. da Silveira, Giovani J.C., 2014. "An empirical analysis of manufacturing competitive factors and offshoring," International Journal of Production Economics, Elsevier, vol. 150(C), pages 163-173.
    15. Kotabe, Masaaki & Murray, Janet Y., 1996. "Determinants of intra-firm sourcing and market performance," International Business Review, Elsevier, vol. 5(2), pages 121-135, April.
    16. Linares Navarro, E. & Pla Barber, J. & Puig Blanco, F, 2009. "La Estrategia De Outsourcing Internacional En España: Una Aproximación A Los Sectores Manufactureros Tradicionales / The Strategy Of International Outsourcing In Spain: An Approximation To The Tradi," Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 15(3), pages 55-67.

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