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The Future of Global Sourcing: a Buyer’s Perspective Through the Lens of the Dynamic Capabilities Theory

Wilmer, W. (2024) The Future of Global Sourcing: a Buyer’s Perspective Through the Lens of the Dynamic Capabilities Theory.

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Abstract:Firms have the opportunity to benefit from global sourcing, as opposed to local sourcing. These advantages range from cost savings or superior quality, to improved availability or reduced overreliance on existing suppliers. However, global sourcing firms have experienced challenges in recent years, such as logistical issues, new regulations regarding social responsibility and geopolitical tensions. This prompts the question of whether global sourcing can continue, or if firms will decrease global sourcing and increase sourcing from local suppliers. 13 semi-structured interviews are conducted to examine the dynamics of global sourcing with recent developments. The study also examines Dynamic Capabilities Theory to examine which dynamic capabilities can facilitate global sourcing. Findings show that firms are impacted differently by the risk factors. Though the risk factors can pose a reason to reduce global sourcing, this is not the case for every company. The extent to which firms are affected depends on product characteristics, firm-specific developments, the dynamics of the supply market and the developed dynamic capabilities. It is found that firms can mitigate the negative effects of risk factors if the required dynamic capabilities are developed.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/104315
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