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Purpose The purpose of this paper is to present a systematic review of the literature concerning the negative aspects of global sourcing (GS). It complements prior research on the positive aspects of GS, advances theoretical understanding of the phenomenon, and suggests an agenda for future research. Design/methodology/approach The sourcing, international business and supply chain management literature is systematically reviewed and findings from 83 previous studies are investigated. Findings Research on the downsides of GS has intensified over the last decade, but the related knowledge has been very fragmented and oftentimes latent. This literature review extracts knowledge around 28 antecedents to GS downsides from the literature and illustrates their potential harmful effects along operational and financial performance dimensions. Findings suggest that future research should focus more on the effects of decision-making biases and the effects of firm-internal barriers. The dynamic and hidden costs of GS should also be scrutinized in more depth. Originality/value This study is the first systematic literature review of the downsides of GS. It facilitates a more balanced and nuanced picture of GS to help managers make better-informed GS decisions. The review also offers a holistic research framework that opens up avenues for much-needed research into the “dark side” of GS.

Purpose The purpose of this paper is to develop taxonomy of sourcing decision-making (SDM) archetypes and explore how different contextual factors influence these archetypes when global sourcing of complex components is considered a viable option. Design/methodology/approach A multiple case study approach with five in-depth cases is employed. In total, 19 interviews as well as publicly available and internal data from large buying firms headquartered in Austria and Germany were collected and analyzed. Findings The results reveal three different SDM archetypes which are described in detail (i.e. “consensus,” “argumentation” and “cabal”). Furthermore, it is found that these archetypes are mainly influenced by three contextual factors: sourcing maturity, product complexity and leadership style. The final model comprises six propositions which illustrate how these contextual factors determine companies’ SDM archetypes. Research limitations/implications The study contributes to theory development at the intersection of organizational buying behavior and the (global) SDM literature. Thereby, it answers the call for more rigorous investigation of the influence of contextual factors on SDM processes. Practical implications The findings enable practitioners to better understand and consequently manage SDM processes and their outcomes. By supporting decision-makers in identifying SDM archetypes, this study allows sourcing managers and teams to make better decisions by avoiding problems that occur in situations in which the preferred decision-making type would result in suboptimal decisions. Originality/value The study provides a first step toward taxonomy of SDM archetypes and is among the first that explores their underlying contextual factors.

Global sourcing (GS) is a firmly established phenomenon in modern business practice that requires specific expertise from different organizational functions, such as purchasing, production, logistics, and research and development to analyze and select sourcing alternatives effectively. In this context, global sourcing decision-making (GSDM) processes pose major challenges because two dimensions of functional politics, namely goal misalignment and power imbalance across functions, appear to influence procedural rationality in a manner not understood to date. Likewise, intuition also seems to play a role for the procedural rationality of GSDM processes. To elucidate the conditions under which procedural rationality is hampered or enhanced by politics and intuition, we studied five cross-functional GSDM processes, in front of extant strategic decision-making literature. We derive formal propositions on how functional politics and intuition influence the procedural rationality and present contingencies for the divergent role of intuition as well as functional politics in GDSM processes. Our research contributes to existing GS literature by providing a theoretical model of important microfoundations of how GSDM processes evolve. The findings also guide managers on how to structure GSDM processes such that GS projects can be conducted in a more rational fashion.

The study provides a first step towards a taxonomy of global sourcing decision-making (GSDM) process archetypes, by answering the questions ‘which archetypes of global sourcing decision-making exist?’ and ‘how do contextual factors determine these types of global sourcing decision-making?’. We highlight the extent to which differences in decision-making processes are explained by variations in environmental, organizational and decision-specific factors. In order to do so, we employ a multiple case study approach with five in-depth cases drawing on 19 interviews as well as publicly available and internal data from large buying firms headquartered in Austria and Germany. Our findings identify three different GSDM archetypes (i.e., bureaucratic-discursive, pragmatic-impartial and political-unstructured) which are mainly influenced by the three main contextual factors: global sourcing maturity, product complexity and leadership style. These factors determine how companies make decisions on sourcing complex co...