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A Country Selection Method for Global Sourcing


  • Thomas Cleff

    (Hochschule Prorzheim)


This article proposes a method for reducing the complexity of decisions in the international procurement process. This procedure is part of the “Global Sourcing Management-Tool”, developed by the author in co-operation with the German mechanical engineering company Heidelberger Druckmaschinen AG and the Centre for European Economic Research Mannheim (ZEW). Based on foreign trade data, the method uses indicators, which allows a cross-section and longitudinal-section valuation of the average international competitiveness and the average supplied product quality of all possible supplier countries. The method thus provides a variety of information for procurement departments, including the present level and the dynamic of competitiveness and product quality for the potential supplier countries within every product group of the international product nomenclature (Combined System and the Harmonised System). Potential supplier countries - the companies of which have proven to be particularly competitive in the different product quality stages - are identified. This pre-selection of countries enables the companies to limit their search for potential suppliers to the selected supplier countries. High “search costs” are subsequently reduced and, in addition to that, trend prognoses can be constructed. Potential supplier countries which have not yet reached a certain quality standard or a certain competitiveness, but have caught up strongly during recent years, can be observed sensitively.

Suggested Citation

  • Thomas Cleff, 2005. "A Country Selection Method for Global Sourcing," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 1, pages 262-279.
  • Handle: RePEc:osi:journl:v:1:y:2005:p:262-279

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    References listed on IDEAS

    1. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    2. Romijn, Henny & Albaladejo, Manuel, 2002. "Determinants of innovation capability in small electronics and software firms in southeast England," Research Policy, Elsevier, vol. 31(7), pages 1053-1067, September.
    3. Jan Fagerberg & Martin Srholec, 2008. "Technology and development: Unpacking the relationship(s)," Working Papers on Innovation Studies 20080623, Centre for Technology, Innovation and Culture, University of Oslo.
    4. anonymous, 1994. "Study examines future of European Monetary Union," Economics Update, Federal Reserve Bank of Atlanta, issue Apr, pages 1-6.
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    More about this item


    international procurement process; international competitiveness; supplied product quality; product quality;

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications


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