IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v44y2013i5p475-503.html
   My bibliography  Save this article

Proximity strategies in outsourcing relations: The role of geographical, cultural and relational proximity in the European automotive industry

Author

Listed:
  • Alexander Schmitt

    (Department of Economics, University of Leuven, Leuven, Belgium)

  • Johannes Van Biesebroeck

    (1] Department of Economics, University of Leuven, Leuven, Belgium[2] Centre for Economic Policy Research, London, UK)

Abstract

Several trends that affect the manufacturing of sophisticated goods – increasing international fragmentation of production, and lean and modular process technologies – have increased the importance of proximity in the supply chain. We use the case of the European automotive industry to simultaneously evaluate the relative importance of three dimensions: geographical, cultural, and relational proximity. Using a rich and novel data set, we find that carmakers value some aspects of each dimension independently in their sourcing strategy. The estimates indicate which proximity measures provide the largest (independent) benefits, but also that the positive effects the literature has attributed to some measures tend to reflect past relationships rather than predict new ones. In particular, co-location and a low cultural distance should be interpreted as outcomes of a sourcing strategy, not as predictors for sourcing success. Finally, we investigate to what extent firms from different countries follow different strategies, and which choices suppliers can make to boost their attractiveness as outsourcing partners.

Suggested Citation

  • Alexander Schmitt & Johannes Van Biesebroeck, 2013. "Proximity strategies in outsourcing relations: The role of geographical, cultural and relational proximity in the European automotive industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(5), pages 475-503, June.
  • Handle: RePEc:pal:jintbs:v:44:y:2013:i:5:p:475-503
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jibs/journal/v44/n5/pdf/jibs201310a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/jibs/journal/v44/n5/full/jibs201310a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Jue & Liu, Xiaming & Wei, Yingqi & Wang, Chengang, 2014. "Cultural Proximity and Local Firms’ catch up with Multinational Enterprises," World Development, Elsevier, vol. 60(C), pages 1-13.
    2. Zimmermann, Angelika & Ravishankar, M.N., 2016. "A systems perspective on offshoring strategy and motivational drivers amongst onshore and offshore employees," Journal of World Business, Elsevier, vol. 51(4), pages 548-567.
    3. Jorge MONGAY, 2017. "Market Economies Potentialities and Cultural Clusters. A Global and Longitudinal Study," Expert Journal of Economics, Sprint Investify, vol. 5(1), pages 1-13.
    4. Giovanna Magnani & Antonella Zucchella & Dinorà Eliete Floriani, 2015. "Relativity and asymmetry in distance. The role of strategic distance in the internationalization decisions of Brazilian and Italian firms," DEM Working Papers Series 111, University of Pavia, Department of Economics and Management.
    5. repec:eee:iburev:v:27:y:2018:i:1:p:1-20 is not listed on IDEAS
    6. Dodourova, Mariana & Bevis, Keith, 2014. "Networking innovation in the European car industry: Does the Open Innovation model fit?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 252-271.
    7. Blevins, Dane P. & Moschieri, Caterina & Pinkham, Brian C. & Ragozzino, Roberto, 2016. "Institutional changes within the European Union: How global cities and regional integration affect MNE entry decisions," Journal of World Business, Elsevier, vol. 51(2), pages 319-330.
    8. Alessandro Manello & Giuseppe G. Calabrese & Piercarlo Frigero, 2016. "Technical efficiency and productivity growth along the automotive value chain: evidence from Italy," Industrial and Corporate Change, Oxford University Press, vol. 25(2), pages 245-259.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:44:y:2013:i:5:p:475-503. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.