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Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis

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Abstract

Using a contingency model of global sourcing strategy, this study investigated the moderating effects of sourcing-related factors on the relationship between sourcing strategy and a product's strategic and financial performance. The results lent some support to the contingency model of global sourcing strategy in that product innovation, process innovation and asset specificity were significant moderator variables for financial, but not strategic, performance. However, the results provided no support for bargaining power of suppliers and transaction frequency as moderator variables. In other words, in achieving high financial performance for a product, whether a particular sourcing strategy should be used for a particular product depended on the levels of product innovation, process innovation and asset specificity.

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Authors and Affiliations

  1. Cleveland State University,

    Janet Y. Murray

  2. The University of Texas at Austin,

    Masaaki Kotabe

  3. University of Missouri-Columbia,

    Albert R. Wildt

Authors
  1. Janet Y. Murray
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  2. Masaaki Kotabe
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  3. Albert R. Wildt
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Additional information

*Janet Y. Murray is Assistant Professor of Marketing at Cleveland State University (Ph.D., University of Missouri). Her research interests include global sourcing, global competitive strategy, and strategic alliances. This is her second publication in the Journal of International Business Studies.

**Masaaki Kotabe is Associate Professor of Marketing and International Business at the University of Texas at Austin. His research interests include global sourcing, competitive strategy, export management, and cross-cultural comparative issues. His research has appeared in such journals as Journal of International Business Studies, Journal of Marketing, Columbia Jouml of World Business, and Journal of International Marketing, among others.

***Albert R. Wildt is the Bailey K. Howard World Book Professor of Marketing at the University of Missouri. He has published articles in various business, marketing and social science journals.

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Murray, J., Kotabe, M. & Wildt, A. Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis. J Int Bus Stud 26, 181–202 (1995). https://doi.org/10.1057/palgrave.jibs.8490171

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8490171

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