In this paper, we analyze the impact of supplier pricing schemes and supplier capacity limitations on the optimal sourcing policy for a single firm. We consider the situation where the total quantity to be procured for a single period is known by the firm and communicated to the supplier set. In response to this communication, each supplier quotes a price and a capacity limit in terms of a maxi...

Purpose This research aims to investigate the impact of current COVID-19 pandemic (C19, Corona) on trends transcontinental sourcing as an extreme form global sourcing. study starts by observing that sideward movement international trade in past decade can be differentiated into increase and a relative decline intra-EU By differentiating between continental sourcing, this gains insights conducts...

Capacity reservation contracts and spot markets are two alternative purchasing practices. We focus on the cost-effective management of the combined use of these two procurement sources. Due to the variability of the spot market prices and demand uncertainty, the flexibility of combined sourcing can be advantageous. Spot market purchasing is a benefit in case of low spot market prices or insuffi...

Afirm’s organizational and technological boundaries are two important demarcation lines when sourcing for technology. Based on this theoretical lens, four possible combinations of exploration and exploitation emerge. Applying an ambidexterity perspective to a firm’s technology sourcing strategy, we hypothesize that a curvilinear relationship exists between a firm’s technology sourcing mix and i...

In this paper, we examine the impact of eProcurement and strategic alliances on corporate sourcing strategies. We present a framework we developed to help managers focus on the relevant issues for sourcing decisions. We illustrate the framework with different types of sourcing relationships in practice and provide advice on what type of relationship may be most effective in specific situations.

In the everyday business world, the sourcing process of multiple goods and services usually involves complex negotiations that include discussion of product and service features. Currently, this is a high-cost process due to the scarce use of tools that streamline negotiations and assist purchasing managers’ and providers’ decision-making. With the advent of Internet-based technologies, it beca...

The Internet has had a profound influence on innovation practices. Crowd sourcing has tipped the innovation balance from the domination of large corporations towards smaller entities and access to these innovation sources has become an important part of innovation strategy. Customer crowd sourcing, such as MyStarbucksIdea, has opened new avenues of identifying customer needs and trends. Another...

While many theories of the firm seek to explain when firms make rather than buy, in practice firms often make and buy the same inputthey engage in plural sourcing. We argue that explaining the mix of external procurement and internal sourcing for the same input requires a consideration of complementarities across and constraints within modes of procurement. We create analytical foundations for ...

Many organizations are currently deciding whether to insource or outsource their IS function or parts thereof, but are unsure as to what kind of organizational structure to arrange for sourcing and where to locate the sourced activities. To assist in this matter, several IT consultancy firms are providing sourcing consultancy to their clients, resulting in a large body of practical knowledge th...