TY - JOUR
T1 - Global purchasing strategy and International Purchasing Offices
T2 - Evidence from case studies
AU - Jia, Fu
AU - Lamming, Richard
AU - Sartor, Marco
AU - Orzes, Guido
AU - Nassimbeni, Guido
PY - 2014/8
Y1 - 2014/8
N2 - 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.
AB - 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.
KW - Case study
KW - China
KW - Followership
KW - Global sourcing
KW - International purchasing office
KW - Organisational design
KW - Typology
UR - http://www.scopus.com/inward/record.url?scp=84901792072&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2013.09.007
DO - 10.1016/j.ijpe.2013.09.007
M3 - Article
AN - SCOPUS:84901792072
SN - 0925-5273
VL - 154
SP - 284
EP - 298
JO - International Journal of Production Economics
JF - International Journal of Production Economics
ER -