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Motivations, Risks, Barriers, and Results Associated with the Adoption of Global Sourcing by Brazilian Companies: a Case-Based Study

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  • Moema Pereira Nunes

    (Pontifícia Universidade Católica do Rio Grande do Sul)

Abstract

This article aims to identify the motivations behind global sourcing (GS) adoption, the associated risks and barriers, and the results that companies from emerging countries are achieving. The research explores the distinguishing features of these companies' experience and examines established theories about GS that are based on companies from developed countries. In the article, a case-based study investigated four companies from the electrical and electronics industry in South Brazil. Data were collected through in-depth interviews, documents, and direct observation. According to the research, the main motivations for adopting GS are faster access to new technologies and establishing a presence in global markets. It was also found that the opportunity to offer diversified products using the distribution channels already developed by companies motivates GS adoption, a situation that prior literature has not identified. Despite the risks, the absence of a broad local supply-base prompts companies to adopt GS. Further, the failure to formalize barrier analysis processes creates difficulties for companies. The main results associated with GS relate to innovation and reductions in the time taken to develop products and reach markets. In this regard, companies face a challenge to develop the abilities required to compete for the advantages that the global market can offer.

Suggested Citation

  • Moema Pereira Nunes, 2016. "Motivations, Risks, Barriers, and Results Associated with the Adoption of Global Sourcing by Brazilian Companies: a Case-Based Study," Brazilian Business Review, Fucape Business School, vol. 13(2), pages 135-157, March.
    • Handle: RePEc:bbz:fcpbbr:v:13:y:2016:i:2:p135-157
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    References listed on IDEAS

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