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Global sourcing in integrated network structures: The case of hybrid purchasing organizations

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  • Trautmann, Gerhard
  • Bals, Lydia
  • Hartmann, Evi

Abstract

An issue for companies in globally competitive markets is to adapt their organizational structures and governance in increasingly complex organizations. At the functional level of purchasing, companies are turning to hybrid purchasing organizations in order to leverage global sourcing benefits. One of the key challenges in this context is to distinguish between categories to be integrated across sites and those that are to remain under the authority of each purchasing location in order to maximize purchasing synergies. This paper presents a purchasing portfolio model that provides a comprehensive view of relevant global synergy dimensions. Based on a literature review, a theoretically-grounded purchasing portfolio model for global sourcing is developed. The theoretical basis stems from information processing theory, organizational buying behavior (OBB) and transaction cost economics. The validity of the model is explored by means of case study research. Complementing the extant literature, the theoretical contribution of the paper lies in not only addressing category selection criteria for exploiting economies of scale, but also for economies of information and learning and economies of process. Furthermore, it provides insights regarding integrated network coordination mechanisms at the functional level of purchasing.

Suggested Citation

  • Trautmann, Gerhard & Bals, Lydia & Hartmann, Evi, 2009. "Global sourcing in integrated network structures: The case of hybrid purchasing organizations," Journal of International Management, Elsevier, vol. 15(2), pages 194-208, June.
    • Handle: RePEc:eee:intman:v:15:y:2009:i:2:p:194-208
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Lorentz, Harri & Kumar, Mukesh & Srai, Jagjit Singh, 2018. "Managing distance in international purchasing and supply: a systematic review of literature from the resource-based view perspective," International Business Review, Elsevier, vol. 27(2), pages 339-354.
    3. Jia, Fu & Lamming, Richard & Sartor, Marco & Orzes, Guido & Nassimbeni, Guido, 2014. "Global purchasing strategy and International Purchasing Offices: Evidence from case studies," International Journal of Production Economics, Elsevier, vol. 154(C), pages 284-298.
    4. Massimiliano Ferraresi & Gianluca Gucciardi & Leonzio Rizzo, 2017. "Does purchase centralization reduce public expenditure? Evidence from the Italian healthcare system," Working papers 66, Società Italiana di Economia Pubblica.
    5. Kizito Elijah Kanyoma & James Kamwachale Khomba & Eric James Sankhulani & Rabiya Hanif, 2013. "Sourcing Strategy and Supply Chain Risk Management in the Healthcare Sector: A Case Study of Malawi¡¯s Public Healthcare Delivery Supply Chain," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 4(3), pages 16-26, August.
    6. Lampel, Joseph & Bhalla, Ajay, 2011. "Living with offshoring: The impact of offshoring on the evolution of organizational configurations," Journal of World Business, Elsevier, vol. 46(3), pages 346-358, July.
    7. Sandberg, Erik & Oghazi, Pejvak & Chirumalla, Koteshwar & Patel, Pankaj C., 2022. "Interactive research framework in logistics and supply chain management: Bridging the academic research and practitioner gap," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    8. Bilge Aykol & Dayananda Palihawadana & Leonidas C. Leonidou, 2013. "Research on the Import Activities of Firms 1960–2010," Management International Review, Springer, vol. 53(2), pages 215-250, April.
    9. Wieland, Andreas & Bals, Lydia & Mol, Michael J. & Handfield, Robert B., 2020. "Overcoming blind spots in global sourcing research: Exploiting the cross-sections between supply chain management and international business," Journal of International Management, Elsevier, vol. 26(1).
    10. Knight, Louise & Tu, Yi-Hsi & Preston, Jude, 2014. "Integrating skills profiling and purchasing portfolio management: An opportunity for building purchasing capability," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 271-283.
    11. Driedonks, Boudewijn A. & Gevers, Josette M.P. & van Weele, Arjan J., 2014. "Success factors for sourcing teams: How to foster sourcing team effectiveness," European Management Journal, Elsevier, vol. 32(2), pages 288-304.
    12. Rene G. Rendon & Thomas V. Huynh & John S. Osmundson, 2012. "Contracting processes and structures for systems‐of‐systems acquisition," Systems Engineering, John Wiley & Sons, vol. 15(4), pages 471-482, December.
    13. Martijn van den Hurk, 2016. "Bundling the procurement of sports infrastructure projects: How neither public nor private actors really benefit," Environment and Planning C, , vol. 34(8), pages 1369-1386, December.
    14. Kirchner, Alexander & Labusch, Nils & Lopez Cordoba, Adriana & Sartor, Sebastian & Tumbas, Sanja & Villalon, Enrique & Wiethoff, Sebastian, 2011. "Network e-Volution," ERCIS Working Papers 11, University of Münster, European Research Center for Information Systems (ERCIS).
    15. Yeniyurt, Sengun & Henke, John W. & Cavusgil, Erin, 2013. "Integrating global and local procurement for superior supplier working relations," International Business Review, Elsevier, vol. 22(2), pages 351-362.
    16. Denita Cepiku & Fabio Marinangeli & Benedetta Marchese, 2019. "La centralizzazione degli acquisti in sanit?: esperienze di approvvigionamento del servizio di ossigenoterapia domiciliare nel Lazio," MECOSAN, FrancoAngeli Editore, vol. 2019(111), pages 7-33.
    17. 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.

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