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International Sourcing and Supply Chain Stability

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  • David L Levy

    (University of Massachusetts)

Abstract

An international supply chain is conceptualized as a complex, dynamic system in which disruptions interact with long shipping and lead times to generate costs. Findings from a case study and simulation model indicate that demand-related disruptions created substantial and unexpected costs in terms of expedited shipping, high inventories, and lower demand fulfillment. Production-related disruptions declined over time, but demand-related disruptions did not. Implications for management are discussed.© 1995 JIBS. Journal of International Business Studies (1995) 26, 343–360

Suggested Citation

  • David L Levy, 1995. "International Sourcing and Supply Chain Stability," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(2), pages 343-360, June.
  • Handle: RePEc:pal:jintbs:v:26:y:1995:i:2:p:343-360
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    Citations

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    Cited by:

    1. Ana Teresa Tavares & Stephen Young, 2004. "Sourcing Patterns of Foreign-owned Multinational Subsidiaries in Europe," ERSA conference papers ersa04p575, European Regional Science Association.
    2. Holweg, Matthias & Reichhart, Andreas & Hong, Eui, 2011. "On risk and cost in global sourcing," International Journal of Production Economics, Elsevier, vol. 131(1), pages 333-341, May.
    3. Qi, Lian & Lee, Kangbok, 2015. "Supply chain risk mitigations with expedited shipping," Omega, Elsevier, vol. 57(PA), pages 98-113.
    4. Moema Pereira Nunes, 2016. "Motivations, Risks, Barriers, and Results Associated with the Adoption of Global Sourcing by Brazilian Companies: a Case-Based Study," Brazilian Business Review, Fucape Business School, vol. 13(2), pages 135-157, March.
    5. S. Katie Moon & Gordon M. Phillips, 2014. "Outside Purchase Contracts, Human Capital and Firm Capital Structure," NBER Working Papers 20579, National Bureau of Economic Research, Inc.
    6. Ernst, Dieter, 1997. "From Partial to Systemic Globalization: International Production Networks in the Electronics Industry," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt7326w69k, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    7. Desbordes, Rodolphe, 2007. "The sensitivity of U.S. multinational enterprises to political and macroeconomic uncertainty: A sectoral analysis," International Business Review, Elsevier, vol. 16(6), pages 732-750, December.
    8. Holmstrom, Jan & Hameri, A. -P. & Nielsen, Niels H. & Pankakoshi, Juha & Slotte, Jonas, 1997. "Examples of production dynamics control for cost efficiency," International Journal of Production Economics, Elsevier, vol. 48(2), pages 109-119, January.
    9. Andreas Grossler, 2010. "An Exploratory Study of Differences in Manufacturing Strategy between National and Global Production Firms," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 1(1), pages 47-62, December.
    10. 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.
    11. Zorzini, Marta & Stevenson, Mark & Hendry, Linda C., 2012. "Customer Enquiry Management in global supply chains: A comparative multi-case study analysis," European Management Journal, Elsevier, vol. 30(2), pages 121-140.
    12. Meena, P.L. & Sarmah, S.P. & Sarkar, A., 2011. "Sourcing decisions under risks of catastrophic event disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1058-1074.
    13. Hutzschenreuter, Thomas & Lewin, Arie Y. & Dresel, Stephan, 2011. "Governance modes for offshoring activities: A comparison of US and German firms," International Business Review, Elsevier, vol. 20(3), pages 291-313, June.
    14. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    15. Wagner, Hardy, 2004. "Internationalization speed and cost efficiency: evidence from Germany," International Business Review, Elsevier, vol. 13(4), pages 447-463, August.
    16. Geary, S. & Disney, S.M. & Towill, D.R., 2006. "On bullwhip in supply chains--historical review, present practice and expected future impact," International Journal of Production Economics, Elsevier, vol. 101(1), pages 2-18, May.
    17. 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.
    18. Tang, Christopher S., 2006. "Perspectives in supply chain risk management," International Journal of Production Economics, Elsevier, vol. 103(2), pages 451-488, October.
    19. repec:spr:manint:v:51:y:2011:i:1:d:10.1007_s11575-010-0061-0 is not listed on IDEAS
    20. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, vol. 42(2), pages 379-390.
    21. Ojha, Divesh & Shockley, Jeff & Acharya, Chandan, 2016. "Supply chain organizational infrastructure for promoting entrepreneurial emphasis and innovativeness: The role of trust and learning," International Journal of Production Economics, Elsevier, vol. 179(C), pages 212-227.
    22. repec:spr:manint:v:53:y:2013:i:2:d:10.1007_s11575-012-0143-2 is not listed on IDEAS
    23. Lorentz, Harri & Töyli, Juuso & Solakivi, Tomi & Ojala, Lauri, 2016. "The effect of a geographically dispersed supply base on downside risk: Developing and testing the N-shaped theory," International Business Review, Elsevier, vol. 25(4), pages 872-882.
    24. Danese, Pamela & Romano, Pietro & Formentini, Marco, 2013. "The impact of supply chain integration on responsiveness: The moderating effect of using an international supplier network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 125-140.
    25. Mauri, Alfredo J. & Sambharya, Rakesh B., 2001. "The impact of global integration on MNC performance: evidence from global industries," International Business Review, Elsevier, vol. 10(4), pages 441-454, August.

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