Going global : a comparison of the relative attractiveness of global sourcing locations

Carruthers, Robert Keith

Abstract

Domestic organizations in competitive markets are often reliant on the sourcing of low-cost goods and services from suppliers located offshore, often located in China. History has shown that location advantages are not fixed, and evolve over time, creating a shift in when and when global sourcing opportunities present themselves. With the future success of so many organizations tied to low-cost China sourcing, China’s future competitiveness as a sourcing location is of critical importance. If China does indeed lose their competitive advantage, how will the potential reduction in China’s cost competitiveness impact those organizations reliant on China sourcing to compete in their marketplace?
The purpose of this research is to determine what location factors drive the global sourcing decision-making process, the relative weights of these factors in making global sourcing decisions, and how different sourcing locations (including China) currently score in relative comparison to each other with regards to these factors. An understanding of these factors and how they effect the global sourcing decision-makers will allow organizations to understand which global locations might present opportunities for both their current and future global sourcing activities.
The methodology used in this research is based on a mixed methods approach, grounded in an explanatory sequential design, with a focus in the basic qualitative research methodology. A quantitative survey was utilized to identify potential decision-making factors and weights, supplemented by semi-structured interviews to understand why the relevant factors are indeed relevant, and to provide trustworthiness, credibility, and dependability in the findings.
Semi-structured interviews of two distinct populations (global sourcing practitioners and business advisors) were conducted, as was a survey of supply chain practitioners from the Supply Chain Management Association. This approach provided an opportunity to understand what factors are deemed important for practitioners making global sourcing decisions, and the relative factor weights these factors hold in the decision-making process. The methodology also provides insight into the potential differences between those who do (the practitioners), and
those who advise (the business advisors).
The research findings indicate that China is not necessarily the most attractive global sourcing location for all global sourcing, and that results are dependent on where the organization is sourcing from, the competitive make-up of their industry, and the organization’s tolerance for risk.
The practical implication and originality of this work is to provide a foundation for the subsequent building of a model analyzing the current state of comparative attractiveness with regards to which global sourcing locations are likely to provide the largest opportunities for organizations, given the organization’s location, global sourcing strategy, and organizational risk profile.

Citation

Carruthers, R. K. (2020). Going global : a comparison of the relative attractiveness of global sourcing locations. (Thesis). University of Hull. Retrieved from https://hull-repository.worktribe.com/output/4223685

• Thesis Type: Thesis
• Deposit Date: Nov 25, 2021
• Publicly Available Date: Feb 24, 2023
• Keywords: Business
• Public URL: https://hull-repository.worktribe.com/output/4223685
• Additional Information: Business School, The University of Hull
• Award Date: Apr 1, 2020