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Domestic Sourcing by Foreign-Owned Subsidiaries

Author

Listed:
  • David Williams

    (University of Liverpool Management School, University of Liverpool, Chatham Street, Liverpool L69 7ZH, England)

  • Frank McDonald

    (Bradford School of Management, University of Bradford, Bradford BD9 4JL, England)

  • Heinz J Tüselmann

    (International Business Unit, Manchester Metropolitan University Business School, Aytoun Street, Manchester M1 3GH, England)

  • Colin Turner

    (Hull University Business School, University of Hull, Hull HU6 7RX, England)

Abstract

This paper investigates the development of domestic sourcing by foreign-owned subsidiaries (FOS) in the UK. The regional development and international-business literatures are used to develop a conceptual framework on the links between autonomy, the use of networks, and domestic sourcing. Data from a survey of German, French, and US FOS in the UK is used to test the model. The results indicate that increased use of networks and increased operational decision-making autonomy are associated with increased domestic sourcing, but that only a minority of FOS are increasing their use of domestic sourcing. The growing importance of global sourcing is considered as a possible explanation for the low proportion of FOS that are increasing their use of domestic sourcing. The implications for regional-development policy of the findings are also assessed.

Suggested Citation

  • David Williams & Frank McDonald & Heinz J Tüselmann & Colin Turner, 2008. "Domestic Sourcing by Foreign-Owned Subsidiaries," Environment and Planning C, , vol. 26(1), pages 260-276, February.
    • Handle: RePEc:sae:envirc:v:26:y:2008:i:1:p:260-276
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