Global Sourcing Flexibility: Promoting Process Standardization, Location Capacity and Mobility of Resources

Peter D.  Ørberg Jensen; Bent Petersen

Global Sourcing Flexibility: Promoting Process Standardization, Location Capacity and Mobility of Resources

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › peer-review

Abstract

Recent studies show that flexibility is a key concern for firms that engage in the global sourcing of services. In this conceptual paper, we seek to explore two central aspects of global sourcing flexibility: In the first part of the paper, we provide a definition of the construct of global sourcing flexibility. Here we draw on prior research in the fields of organizational flexibility, international business and global sourcing as well as case examples and secondary studies. In the second part of the paper, we discuss the implications of global sourcing flexibility for firm strategy and operations against the backdrop of the theory-based definition of the construct. We discuss in particular the importance of global sourcing flexibility for operational performance stability, and the trade-off between specialization benefits, emerging from location and service provider specialization, versus the higher costs (but decreased risk for value chain disruption) embedded in a more flexible global sourcing model that allows the firm to replicate and/or relocate activities across multiple locations. We develop a model and propositions on facilitating and constraining conditions of global sourcing flexibility. We finally discuss implications for management and international business research, within and beyond the domain of global services sourcing.

Original language	English
Title of host publication	Proceedings of the 55th Annual Meeting of the Academy of International Business
Editors	Patricia McDougall-Covin, Tunga Kiyak
Place of Publication	East Lansing, MI
Publisher	Academy of International Business
Publication date	2013
Pages	137-138
Publication status	Published - 2013
Event	AIB 2013 Annual Meeting : Bridging the Divide: Linking IB to Complementary Disciplines and Practice - Sabancı University, Koç University, and Özyeğin University, Istanbul, Turkey Duration: 3 Jul 2013 → 6 Jul 2013 Conference number: 55 http://aib.msu.edu/events/2013/

Conference

Conference	AIB 2013 Annual Meeting
Number	55
Location	Sabancı University, Koç University, and Özyeğin University
Country/Territory	Turkey
City	Istanbul
Period	03/07/2013 → 06/07/2013
Internet address	http://aib.msu.edu/events/2013/

Series	Academy of International Business. Annual Meeting. Proceedings
Volume	55
ISSN	2078-4430

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http://aib.msu.edu/events/2013/pdfs/AIB2013_Proceedings.pdf

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Ørberg Jensen, P. D., & Petersen, B. (2013). Global Sourcing Flexibility: Promoting Process Standardization, Location Capacity and Mobility of Resources. In P. McDougall-Covin, & T. Kiyak (Eds.), Proceedings of the 55th Annual Meeting of the Academy of International Business (pp. 137-138). Academy of International Business. http://aib.msu.edu/events/2013/pdfs/AIB2013_Proceedings.pdf

Ørberg Jensen, Peter D. ; Petersen, Bent. / Global Sourcing Flexibility : Promoting Process Standardization, Location Capacity and Mobility of Resources. Proceedings of the 55th Annual Meeting of the Academy of International Business. editor / Patricia McDougall-Covin ; Tunga Kiyak. East Lansing, MI : Academy of International Business, 2013. pp. 137-138 (Academy of International Business. Annual Meeting. Proceedings, Vol. 55).

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abstract = "Recent studies show that flexibility is a key concern for firms that engage in the global sourcing of services. In this conceptual paper, we seek to explore two central aspects of global sourcing flexibility: In the first part of the paper, we provide a definition of the construct of global sourcing flexibility. Here we draw on prior research in the fields of organizational flexibility, international business and global sourcing as well as case examples and secondary studies. In the second part of the paper, we discuss the implications of global sourcing flexibility for firm strategy and operations against the backdrop of the theory-based definition of the construct. We discuss in particular the importance of global sourcing flexibility for operational performance stability, and the trade-off between specialization benefits, emerging from location and service provider specialization, versus the higher costs (but decreased risk for value chain disruption) embedded in a more flexible global sourcing model that allows the firm to replicate and/or relocate activities across multiple locations. We develop a model and propositions on facilitating and constraining conditions of global sourcing flexibility. We finally discuss implications for management and international business research, within and beyond the domain of global services sourcing.",

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Ørberg Jensen, PD & Petersen, B 2013, Global Sourcing Flexibility: Promoting Process Standardization, Location Capacity and Mobility of Resources. in P McDougall-Covin & T Kiyak (eds), Proceedings of the 55th Annual Meeting of the Academy of International Business. Academy of International Business, East Lansing, MI, Academy of International Business. Annual Meeting. Proceedings, vol. 55, pp. 137-138, AIB 2013 Annual Meeting , Istanbul, Turkey, 03/07/2013. <http://aib.msu.edu/events/2013/pdfs/AIB2013_Proceedings.pdf>

Global Sourcing Flexibility: Promoting Process Standardization, Location Capacity and Mobility of Resources. / Ørberg Jensen, Peter D. ; Petersen, Bent.
Proceedings of the 55th Annual Meeting of the Academy of International Business. ed. / Patricia McDougall-Covin; Tunga Kiyak. East Lansing, MI: Academy of International Business, 2013. p. 137-138 (Academy of International Business. Annual Meeting. Proceedings, Vol. 55).

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › peer-review

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T1 - Global Sourcing Flexibility

T2 - AIB 2013 Annual Meeting

AU - Ørberg Jensen, Peter D.

AU - Petersen, Bent

N1 - Conference code: 55

PY - 2013

Y1 - 2013

N2 - Recent studies show that flexibility is a key concern for firms that engage in the global sourcing of services. In this conceptual paper, we seek to explore two central aspects of global sourcing flexibility: In the first part of the paper, we provide a definition of the construct of global sourcing flexibility. Here we draw on prior research in the fields of organizational flexibility, international business and global sourcing as well as case examples and secondary studies. In the second part of the paper, we discuss the implications of global sourcing flexibility for firm strategy and operations against the backdrop of the theory-based definition of the construct. We discuss in particular the importance of global sourcing flexibility for operational performance stability, and the trade-off between specialization benefits, emerging from location and service provider specialization, versus the higher costs (but decreased risk for value chain disruption) embedded in a more flexible global sourcing model that allows the firm to replicate and/or relocate activities across multiple locations. We develop a model and propositions on facilitating and constraining conditions of global sourcing flexibility. We finally discuss implications for management and international business research, within and beyond the domain of global services sourcing.

AB - Recent studies show that flexibility is a key concern for firms that engage in the global sourcing of services. In this conceptual paper, we seek to explore two central aspects of global sourcing flexibility: In the first part of the paper, we provide a definition of the construct of global sourcing flexibility. Here we draw on prior research in the fields of organizational flexibility, international business and global sourcing as well as case examples and secondary studies. In the second part of the paper, we discuss the implications of global sourcing flexibility for firm strategy and operations against the backdrop of the theory-based definition of the construct. We discuss in particular the importance of global sourcing flexibility for operational performance stability, and the trade-off between specialization benefits, emerging from location and service provider specialization, versus the higher costs (but decreased risk for value chain disruption) embedded in a more flexible global sourcing model that allows the firm to replicate and/or relocate activities across multiple locations. We develop a model and propositions on facilitating and constraining conditions of global sourcing flexibility. We finally discuss implications for management and international business research, within and beyond the domain of global services sourcing.

M3 - Conference abstract in proceedings

T3 - Academy of International Business. Annual Meeting. Proceedings

SP - 137

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BT - Proceedings of the 55th Annual Meeting of the Academy of International Business

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Ørberg Jensen PD , Petersen B. Global Sourcing Flexibility: Promoting Process Standardization, Location Capacity and Mobility of Resources. In McDougall-Covin P, Kiyak T, editors, Proceedings of the 55th Annual Meeting of the Academy of International Business. East Lansing, MI: Academy of International Business. 2013. p. 137-138. (Academy of International Business. Annual Meeting. Proceedings, Vol. 55).