Global Sourcing: A Development Approach

Abstract

The 1980s witnessed rapid competitive changes globally. As U.S. firms struggled to maintain world market share, they relied increasingly on international part sourcing to sustain competitiveness. As many U.S. firms became more experienced with international procurement, worldwide sourcing shifted from a reactive to a proactive strategy intended to provide a competitive advantage. This article analyzes the growth of international sourcing within the firm as a four‐phase development process. It also presents a hierarchical progression of international to global sourcing strategies and the characteristics associated with each strategy.