Global purchasing strategy and International Purchasing Offices: Evidence from case studies
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...
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| Published in | International journal of production economics Vol. 154; pp. 284 - 298 |
|---|---|
| Main Authors | , , , , |
| Format | Journal Article |
| Language | English |
| Published |
Amsterdam
Elsevier B.V
01.08.2014
Elsevier Sequoia S.A |
| Subjects | |
| Online Access | Get full text |
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| 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. |
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| AbstractList | 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. |
| Author | Jia, Fu Sartor, Marco Orzes, Guido Nassimbeni, Guido Lamming, Richard |
| Author_xml | – sequence: 1 givenname: Fu surname: Jia fullname: Jia, Fu email: fu.jia@exeter.ac.uk, jeff_fujia@hotmail.com organization: University of Exeter Business School, Exeter EX4 4PU, UK – sequence: 2 givenname: Richard surname: Lamming fullname: Lamming, Richard email: richard.lamming@mbs.ac.uk organization: Manchester Business School, The University of Manchester, Booth Street West, Manchester M15 6PB, UK – sequence: 3 givenname: Marco surname: Sartor fullname: Sartor, Marco email: sartor1@uniud.it organization: Department of Electrical, Managerial and Mechanical Engineering, University of Udine, Via delle Scienze 208, 33100 Udine, Italy – sequence: 4 givenname: Guido surname: Orzes fullname: Orzes, Guido email: guido.orzes@uniud.it organization: Department of Electrical, Managerial and Mechanical Engineering, University of Udine, Via delle Scienze 208, 33100 Udine, Italy – sequence: 5 givenname: Guido surname: Nassimbeni fullname: Nassimbeni, Guido email: nassimbeni@uniud.it organization: Department of Electrical, Managerial and Mechanical Engineering, University of Udine, Via delle Scienze 208, 33100 Udine, Italy |
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| Snippet | 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... |
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| SubjectTerms | Case study Causality China Construction Economics Followership Global sourcing Initial public offerings International purchasing International purchasing office Offices Operations research Organisational design Organizational structure Purchasing Sourcing Strategic management Strategy Studies Typology |
| Title | Global purchasing strategy and International Purchasing Offices: Evidence from case studies |
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