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Local, EU, and transcontinental sourcing : a discrete choice experiment on the purchaser’s preferences

Vries, J. D. de (2021) Local, EU, and transcontinental sourcing : a discrete choice experiment on the purchaser’s preferences.

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Abstract:The tendency of companies to source their products from a widespread range of countries, located all over the world, is increasingly present nowadays. Distinction can be made between three categories of sourcing: local, EU, and transcontinental sourcing. Agency theory and social capital theory have proven that they are able to improve the decision making during the supplier selection process and the performance of the relationship while sourcing from a supplier. To explore how the purchaser’s choice between suppliers from the three locational categories can be explained, discrete choice experiments (DCEs) are conducted with purchasers. DCEs are valuable when analysing complex decision making processes, such as the supplier selection process. Attributes that are derived from the agency theory and the social capital theory are included in the DCEs, to study their impact on the decision making of purchasers. The results show that in general, social capital theory has a greater impact on the perceived utility than agency theory, and thus explains a larger part of the purchaser’s decision. Especially a well-developed relationship with the supplier is highly valued by purchasers. The study concludes that certain agency theory and social capital theory attributes can be the motivation for companies to choose to source their products from a supplier that is located in another country.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/86699
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