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Global purchasing strategy and International Purchasing Offices: Evidence from case studies

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

Abstract

Setting up an international purchasing office (IPO) is one of the key steps for firms doing global sourcing. This paper aims to explore the relationship between strategy and structure in a contemporary global purchasing context. We build a theory of IPOs, employing a case study method to address two research questions—what types of IPOs exist in China? And how may an IPO become strategic to its parent's global purchasing? We identify three types or clusters of IPOs along four dimensions: motives for sourcing from China; global purchasing strategy for China; IPO structure and IPO followership. We present a causal model and associated propositions to explain how an IPO may become more strategic for its parent company. In the model we identify that, in addition to the direct link of ‘structure follows strategy’, IPO followership can be an underlying construct, linking IPO structure and global purchasing strategy for China. The paper opens up new avenues for global sourcing research and provides new insights for managers on global purchasing strategy, specifically with respect to IPO organisational design and capabilities.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:154:y:2014:i:c:p:284-298
    DOI: 10.1016/j.ijpe.2013.09.007
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    1. 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.
    2. Mukherjee, Debmalya & Kumar, Satish & Pandey, Nitesh & Lahiri, Somnath, 2023. "Is offshoring dead? A multidisciplinary review and future directions," Journal of International Management, Elsevier, vol. 29(3).
    3. 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.
    4. 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.
    5. 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).
    6. Jianli Luo & Chen Ji & Chunxiao Qiu & Fu Jia, 2018. "Agri-Food Supply Chain Management: Bibliometric and Content Analyses," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    7. Ancarani, Alessandro & Di Mauro, Carmela & Fratocchi, Luciano & Orzes, Guido & Sartor, Marco, 2015. "Prior to reshoring: A duration analysis of foreign manufacturing ventures," International Journal of Production Economics, Elsevier, vol. 169(C), pages 141-155.
    8. 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.
    9. Lydia Bals & Virpi Turkulainen, 2021. "Integration of the buyer–supplier interface for Global sourcing," Operations Management Research, Springer, vol. 14(3), pages 293-317, December.
    10. Yu Gong & Lujie Chen & Fu Jia & Richard Wilding, 2019. "Logistics Innovation in China: The Lens of Chinese Daoism," Sustainability, MDPI, vol. 11(2), pages 1-21, January.
    11. Moser, Roger & Narayanamurthy, Gopalakrishnan & Kusaba, Keiko & Kaiser, Gernot, 2018. "Performance of low-cost country sourcing projects – Conceptual model & empirical analysis," International Journal of Production Economics, Elsevier, vol. 204(C), pages 30-43.
    12. 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.

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