Purpose -Research results concerning the cost-saving potential of international sourcing have been ambiguous and the topic has been covered in isolation without accounting for influences of alternative cost-saving approaches. This paper aims to analyze the expected financial impact of international sourcing in relation to savings potential attributed to other sourcing tactics, such as, e.g. collaborative product improvement. Furthermore, the paper tests for potential trade-offs between different levers. Design/methodology/approach -Data stem from results of 134 cross-functional cost-saving workshops using an identical methodology. Workshop participants identified and estimated cost-saving projects considering seven sourcing levers. Results were recorded in a standardized way and analyzed scrutinizing secondary data. Findings -Contrary to other studies, data revealed that international sourcing projects averaged 3.4 percent savings expectations. More than 80 percent of total savings potential was attributed to other sourcing levers, such as pooling of demand or process improvement. Results highlight possible trade-offs between international sourcing and, e.g. joint product optimization. Research limitations/implications -A rigorous and strict, highly standardized method was employed and data were validated via cross-functional team discussions, however, ex ante expectations instead of ex post realized savings are analyzed. Practical implications -Findings give guidance on the importance of international sourcing compared to other levers and help to correct the misconception of international sourcing as a "purchasing panacea." The findings highlight the need to develop a coherent sourcing strategy for specific commodity groups, including reinforcing tactics and avoiding trade-offs. Originality/value -For the first time, explicitly cost-savings expectations from international sourcing have been analyzed together with other cost-saving levers concerning relative importance and possible trade-offs among them.
a b s t r a c tThe purpose of this study is to explore the link between integration and global sourcing success in international operations and by doing so, to clarify the ambiguous picture that prevails in the existing literature. Specifically, this quantitative study aims at identifying the role of the buying companies' internal and external integration with suppliers using a social capital lens. Data were collected from the central purchasing department of a multinational automotive OEM located in Germany. A sample of 82 purchasers was surveyed about their assessment of global sourcing projects, focusing on internal crossfunctional integration, external supplier integration and project success. The data were analyzed with structural equation modeling procedures, using SmartPLS. The findings indicate that internal integration is a precondition for external integration with suppliers, which accordingly has a strong positive influence on global sourcing success. Surprisingly, the direct relationship between internal and external integration was not significant, indicating a mediating role of social capital within this relationship. The theoretical originality lies in the use of the social capital theory and its three dimensions: cognitive, structural and relational capital for both internal and external integration, and in the connection between integration and global sourcing success. From a practical perspective, it can be recommended that managers distinguish between an internal and an external perspective. Internally, the focus should lie on the clear communication of common goals and norms, whereas externally, the definition of mutual contact points between organizations is of higher importance.
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