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International purchasing offices in China: A dynamic evolution model

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  • Jia, Fu
  • Lamming, Richard
  • Sartor, Marco
  • Orzes, Guido
  • Nassimbeni, Guido

Abstract

The salience of the international purchasing office (IPO) in the management of international sourcing activities of multinational corporations (MNCs) has steadily increased, in developed and emerging economies, since the first adoption of this supply chain strategy in the 1980s. The aim of this paper is to develop an activity/role-based evolution model for IPOs, employing multiple case studies: 14 MNCs’ IPOs in China, studied by British, Italian, and Chinese scholars. Applying role theory in a global purchasing context, we identify eight routine roles and four strategic roles played by IPOs and propose that IPOs could lead an MNC's global sourcing in a geographical region. We challenge the unilinear and sequential nature of existing global sourcing process models and propose a dynamic evolution model, consisting of five stages differentiated by number, depth, and breadth of roles, in which IPOs could leapfrog some stages, re-trench (move back to lower stages) and be potentially withdrawn. Finally, we conclude that the stage of an IPO is determined by the strategic importance of China to its parent company.

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  • Jia, Fu & Lamming, Richard & Sartor, Marco & Orzes, Guido & Nassimbeni, Guido, 2014. "International purchasing offices in China: A dynamic evolution model," International Business Review, Elsevier, vol. 23(3), pages 580-593.
    • Handle: RePEc:eee:iburev:v:23:y:2014:i:3:p:580-593
    DOI: 10.1016/j.ibusrev.2013.09.006
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    3. Sartor, Marco & Orzes, Guido & Di Mauro, Carmela & Ebrahimpour, Maling & Nassimbeni, Guido, 2016. "The SA8000 social certification standard: Literature review and theory-based research agenda," International Journal of Production Economics, Elsevier, vol. 175(C), pages 164-181.
    4. Hendriks, Guus, 2020. "How the spatial dispersion and size of country networks shape the geographic distance that firms add during international expansion," International Business Review, Elsevier, vol. 29(6).
    5. Deniz Köksal & Jochen Strähle & Martin Müller, 2018. "Social Sustainability in Apparel Supply Chains—The Role of the Sourcing Intermediary in a Developing Country," Sustainability, MDPI, vol. 10(4), pages 1-35, March.
    6. Guido Nassimbeni & Guido Orzes & Marco Sartor, 2018. "Strategic Types and Competences of Domestic and Foreign Plants: An Empirical Study," Global Business Review, International Management Institute, vol. 19(4), pages 817-841, August.
    7. Felix Reimann & Tobias Kosmol & Lutz Kaufmann, 2017. "Responses to Supplier-Induced Disruptions: A Fuzzy-Set Analysis," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(4), pages 37-66, October.
    8. Jia, Fu & Rutherford, Christine & Lamming, Richard, 2016. "Cultural adaptation and socialisation between Western buyers and Chinese suppliers: The formation of a hybrid culture," International Business Review, Elsevier, vol. 25(6), pages 1246-1261.

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