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Multiple Forces in Component Localisation in China

Author

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  • Eberhardt, Markus
  • McLaren, Julie
  • Millington, Andrew
  • Wilkinson, Barry

Abstract

Successful localisation of component sourcing is of key concern to the manufacturing subsidiaries of MNCs. However, a range of factors both internal and external to the firm can act as forces for or against successful component localisation. Based on a study of 27 UK-invested MNC subsidiaries in China -- the world's most important emerging market -- this paper explores the forces acting for and against component localisation and identifies the implications for sourcing strategy and supply chain management. Analysis of our data gives rise to an analytical framework that can help guide firms in sourcing strategy generation and implementation.

Suggested Citation

  • Eberhardt, Markus & McLaren, Julie & Millington, Andrew & Wilkinson, Barry, 2004. "Multiple Forces in Component Localisation in China," European Management Journal, Elsevier, vol. 22(3), pages 290-303, June.
    • Handle: RePEc:eee:eurman:v:22:y:2004:i:3:p:290-303
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    Citations

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    Cited by:

    1. Nassimbeni, Guido & Sartor, Marco, 2007. "Sourcing in China: a typology," International Journal of Production Economics, Elsevier, vol. 107(2), pages 333-349, June.
    2. Fan, Di & Cui, Lin & Li, Yi & Zhu, Cherrie J., 2016. "Localized learning by emerging multinational enterprises in developed host countries: A fuzzy-set analysis of Chinese foreign direct investment in Australia," International Business Review, Elsevier, vol. 25(1), pages 187-203.
    3. Duanmu, Jing-Lin & Fai, Felicia M., 2007. "A processual analysis of knowledge transfer: From foreign MNEs to Chinese suppliers," International Business Review, Elsevier, vol. 16(4), pages 449-473, August.
    4. Lockström, Martin & Lei, Liu, 2013. "Antecedents to supplier integration in China: A partial least squares analysis," International Journal of Production Economics, Elsevier, vol. 141(1), pages 295-306.
    5. Jia, Fu & Lamming, Richard & Sartor, Marco & Orzes, Guido & Nassimbeni, Guido, 2014. "Global purchasing strategy and International Purchasing Offices: Evidence from case studies," International Journal of Production Economics, Elsevier, vol. 154(C), pages 284-298.
    6. Christian Finnsgård & Joakim Kalantari & Zeeshan Raza & Violeta Roso & Johan Woxenius, 2018. "Swedish shippers’ strategies for coping with slow-steaming in deep sea container shipping," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-24, December.
    7. Subramanian, Nachiappan & Rahman, Shams & Abdulrahman, Muhammad D., 2015. "Sourcing complexity in the Chinese manufacturing sector: An assessment of intangible factors and contractual relationship strategies," International Journal of Production Economics, Elsevier, vol. 166(C), pages 269-284.

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