A processual analysis of the purchasing and supply organization in transition: the impact of offshoring

Mugurusi, Godfrey; Bals, Lydia

doi:10.1007/s12063-016-0119-7

Cited by 12 publications

(12 citation statements)

References 111 publications

(119 reference statements)

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“…Methodologically, as large-scale surveys probably will not allow for full in-depth insights into such dynamics, future research could replicate and extend our case study approach to other industries and company sizes, and/or adopt complementary processual analyses (Tchokogué et al, 2011;Mugurusi and Bals, 2016). This especially pertains to fully applying the comprehensive framework and going into more detail on the multitude of contingency relationships it entails.…”

Section: Research Implicationsmentioning

confidence: 99%

Evolving Purchasing and Supply Organizations: A contingency model for structural alternatives

Bals

Laine

Mugurusi

2018

Journal of Purchasing and Supply Management

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Purchasing and Supply Management (PSM) is under significant pressure to find levers to further increase its contribution to corporate goals. In order to improve performance in line with expectations, Purchasing and Supply Organizations (PSOs) have to evolve continuously. To help address this challenge, a comprehensive contingency framework of PSO structures is presented. The framework is based on existing literature on PSO contingency factors as well as analysis of two case companies. The findings highlight the importance of taking a contingency perspective for understanding the PSO and combining a detailed view of macro-level structural dimensions with micro-level characteristics. These macro-level dimensions comprise category, business unit, geography and activity. The micro-level characteristics comprise centralization, formalization, specialization, participation and standardization. From a theoretical perspective, the contingency framework opens up insights that can be leveraged in future studies in the fields of hybrid PSOs, global sourcing organizations, and International Purchasing Offices (IPOs).From a practical standpoint, an assessment of external and internal contingencies and their relation to specific structural dimensions and characteristics provides the opportunity for more consciously evolving the PSO to continue to improve PSM's contribution.

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Section: Research Implicationsmentioning

confidence: 99%

Evolving Purchasing and Supply Organizations: A contingency model for structural alternatives

Bals

Laine

Mugurusi

2018

Journal of Purchasing and Supply Management

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“…Technological changes need management that understands and can adapt to the changing world as it is likely to influence firms to outsource (Slaughter and Ang, 1996). Meanwhile, changes in business environment impact labor market cost, which may also deteriorate market growth as the difficulties in finding a suitable labor market from its European facility led NorTex to move its production to Asia (Mugurusi and Bals, 2017). NorTex’s decision helped increase its customer base and reduce any related operational cost.…”

Section: Literature Reviewmentioning

confidence: 99%

Strategic sourcing in Africa: the case for the labor market

Mayounga

2021

JGOSS

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Purpose This paper aims to describe the impact of the labor market on the integration of Africa into the global supply chain (GSC). Design/methodology/approach The analysis of trends and comparison of data for 55 nations and territories in Africa using existing data from the World Bank and International Labor Organization, and government and nongovernment reports took place using qualitative content analysis methodology. Findings Africa’s labor market enhances the continent’s integration into the GSC despite challenges in other areas, with three pillars identifying the labor market’s strategic sourcing decisions. Research limitations/implications The analysis is limited to trends analysis, some of which may have changed during the study. Practical implications The findings will enable the global business industry and governments to envision the potential and design Africa’s labor market competitiveness across the African continent. The findings also establish the necessity and opportunity for enhanced infrastructure to attract additional foreign direct. Social implications The social implication of this paper is beyond the potential of Africa’s labor market. The paper illustrates how the African is setting to become the next sourcing hub for the global supply chain, allowing scholars to close any prevailing global sourcing gap in research. Originality/value This paper describes the potential of Africa’s supply of low-cost labor market and its integration in the GSC.

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“…Recently high-cost countries have adopted a political agenda fostering the reshoring production rather than moving abroad as an opportunity for firms to look for innovation (Bailey and De Propris, 2014a;Buciuni and Finotto, 2016;Roos, 2016). In low-cost countries, most of the studies find cost reduction (Ashby, 2016;Di Mauro et al, 2017), flexibility and responsiveness in operations as main motivation for many firms to establish their production activities (Foerstl et al, 2016;Mugurusi and Bals, 2016). However, for some firms the experience of internationalization was not often beneficial and there was a need to re-evaluate the location decision.…”

Section: Theoretical Framework 21 Location Decisions In High-cost Countriesmentioning

confidence: 99%

Co-location of R&D and production in fashion industry

Lica

Maria

Marchi

2020

JFMM

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PurposeThe purpose of this paper is to analyze how important is co-location of R&D and production for firms originated from high-cost countries and to provide evidence of the relationship between the different strategies of location choices and co-location.Design/methodology/approachIn order to investigate the relationship between R&D/design-production co-location and strategies of location choices for production, this paper uses a cluster analysis of 37 Italian firms that operate in fashion industry.FindingsThis article finds that co-location results in a dominant strategy for firms under the following conditions: high level of product customization, coordination difficulties between R&D and production, rapid change in production process technologies and product complexity difficult to be coded.Research limitations/implicationsThis paper presents some limitations in that it focuses only on fashion industry without considering other sectors.Practical implicationsThis paper has some managerial implication in that offers some insight on decision making in organization. In particular offers some insights of how important is having an internal R&D/design function rather than collaborating with external designers in order to achieve competitive advantage in terms of product quality, product design and also brand name reputation.Originality/valueThis paper suggests that the co-location of R&D and production may improve the firms' performance considering the need for constant interaction between the two units. Moreover, it suggests that the co-location of R&D and production both within and external (within the firms' region and/or within the country) to the firms might be important. Furthermore, larger firms in terms of turnover have a greater preference to locate the R&D function close to the production function.

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A processual analysis of the purchasing and supply organization in transition: the impact of offshoring

Cited by 12 publications

References 111 publications

Evolving Purchasing and Supply Organizations: A contingency model for structural alternatives

Evolving Purchasing and Supply Organizations: A contingency model for structural alternatives

Strategic sourcing in Africa: the case for the labor market

Co-location of R&D and production in fashion industry

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