The status of global sourcing as a critical tool of strategic planning: Opportunistic versus strategic dichotomy

Global sourcing is a powerful factor in developing a global competitive advantage. However, U.S. firms typically use global sourcing casually; that is, as an opportunity presents itself, rather than as a hey element in their overall corporate strategic plan. This article establishes a conceptual distinction between opportunistic and strategic sourcing. Our research is based on a large scale study of the international group of the National Association of Purchasing Management. The findings indicate that U.S. companies engaged in large-scale global sourcing show a tendency to place this activity at top management decision levels. They also attach an important role to global sourcing in the strategic plan. Finally, they carefully plan their global sourcing through long-term contacts and interorganizational systems, such as Just-In-Time (JIT). However, many respondents who have engaged in global sourcing on a smaller scale, do just the opposite. They seem to treat global sourcing from an opportunistic perspective. It is maintained here that by making global sourcing a more strategic activity, U.S. firms can improve their global performance. J BUSN RES 1998, 43. 177-187. (C) 1998 Elsevier Science Inc.