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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)

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

Suggested Citation

  • Paul M Swamidass & Masaaki Kotabe, 1993. "Component Sourcing Strategies of Multinationals: An Empirical Study of European and Japanese Multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(1), pages 81-99, March.
    • Handle: RePEc:pal:jintbs:v:24:y:1993:i:1:p:81-99
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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, pages 81-108, National Bureau of Economic Research, Inc.
    6. 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.
    7. 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.
    8. 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.
    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. Saeed Samiee & Constantine S. Katsikeas & G. Tomas M. Hult, 2021. "The overarching role of international marketing: Relevance and centrality in research and practice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1429-1444, October.
    11. Tain-Jy Chen & Shin-Horng Chen, 2001. "Global Production Networks and Local Capabilities: New Opportunities and Challenges for Taiwan," Economics Study Area Working Papers 15, East-West Center, Economics Study Area.
    12. 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.
    13. Lutz Kaufmann & Peter Körte, 2010. "Responses of Advanced Country MNEs to Low-cost Country Imports in Their Home Markets," Management International Review, Springer, vol. 50(2), pages 241-262, April.
    14. Joe Miemczyk & Thomas Johnsen & Katri Karjalainen & Asta Salmi & Federico Caniato, 2011. "Global sourcing: Linking category characteristics to the geographical scope of sourcing," Post-Print hal-00763047, HAL.
    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. 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.
    17. Shin-Horng Chen, 2002. "Global Production Networks and Information Technology: The Case of Taiwan," Economics Study Area Working Papers 46, East-West Center, Economics Study Area.
    18. Lorena D’Agostino, 2015. "The neglected effects of R&D captive offshoring in emerging countries on the creation of knowledge at home," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 61-91, March.
    19. Mol, M.J. & van Tulder, R. & 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 University Rotterdam.
    20. 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.
    21. repec:rdg:wpaper:em-dp2004-15 is not listed on IDEAS
    22. 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 Traditi," 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.
    23. Karjalainen, Katri & Salmi, Asta, 2013. "Continental differences in purchasing strategies and tools," International Business Review, Elsevier, vol. 22(1), pages 112-125.
    24. Jae C. Jung & Khan-Pyo Lee, 2018. "Host Country Sourcing of Multinational Enterprises: A Corporate Social Responsibility Perspective," Journal of Business Ethics, Springer, vol. 152(3), pages 683-701, October.

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