Drawing upon the framework set forth in the Interaction Model developed by the European IMP Group, examines factors leading to close relationships between buyers and sellers. An empirical test, using multiple regression analysis, demonstrates that the exchange of information and interpersonal contacts produce a co‐operative atmosphere between buyer and seller which, in turn, sets the stage for mutual adaptation. A model presented and tested affirms the relationships implied by the IMP Interaction Model and suggests managerial actions which should strengthen the links between buyer and seller.

Operating in an increasingly interconnected world, leading companies perceive competition as global and are moving to implement an integrated strategy worldwide. Global competitors are learning to develop and manufacture products that can be introduced and marketed simultaneously in many countries. In doing so, they are sourcing technology, materials, and components from sites and suppliers located throughout the world. Evidence that the thinking of many key managers has shifted from local to worldwide concerning the sourcing of requirements is not difficult to come by. Many feel that if a company expects to compete on a global scale, international sourcing must be part of its strategy. Although some companies have established numerous relationships with foreign suppliers and spend truly significant amounts overseas, the sights of many U.S. firms remain closer to home. Relatively modest foreign purchases are currently more typical. The principal motivation underlying this study was to ascertain the extent to which offshore procurement is being practiced by a cross‐section of U.S. firms. The research reported is based on a survey of 135 international purchasing managers and presents new information about the nature and scope of foreign buying. The results of the study provide evidence that a cross‐section of U.S. industry, comprising large and small firms alike, considers international sourcing to be an important element of competitive strategy. Likewise, purchasing from foreign suppliers to achieve lower costs is an effective competitive action. In view of the evidence of continued growth in offshore sourcing and its importance to the competitive strategies of a broad spectrum of U.S. firms, buyers with offshore purchasing responsibilities must incorporate a global perspective in the execution of their purchasing tasks.

Explores the factors that motivate companies to utilize offshore sources or prevent them from doing so. One‐hundred‐and‐fifteen firms representing 68 different industries were surveyed. The findings indicate that buyers in the responding companies followed a more traditional approach to purchasing, concentrating on a search for the lowest cost source of supply. The ability to access and rely on a global network of world‐class suppliers holds the key to competitiveness in today′s environment.

Companies that successfully incorporate international sourcing into their international marketing strategies enhance their abilities to provide their customers with quality products at acceptable prices. To a large extent, an effective international marketing strategy depends on a firm′s ability to segment its international markets. Previous studies addressed country segmentation on the basis of clustering a group of countries by an array of macroeconomic factors. These studies focussed their attention on segmenting countries on the factors important to making marketing decisions. Focusses on the making of sourcing decisions. More specifically, analyzes the extent to which countries belong to the same grouping on the basis of purchasing patterns of materials, components, finished products or technology. One‐hundred‐and‐thirty‐five firms representing 42 different countries were surveyed. The countries were clustered on the basis of these firms′ sourcing strategies. The market segment approach enables industrial marketers who are inexperienced in marketing internationally to borrow from the experience of firms which are already present in such markets. Furthermore, the availability and reliability of data and the proposed methodology can serve as useful tools in conducting such research.

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