Location Flexibility in Global Sourcing: Modalities and Tradeoffs in an Era of Increased Volatility

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Abstract

Increased volatility is the new normal for globalized and interconnected supply chains. Complementing studies on governance and supplier flexibility this conceptual paper aims to fill an extant research gap in relation to firms’ location flexibility in global sourcing. In an increasingly dynamic and globally integrated economic environment, firms develop the capacity to swiftly relocate tasks and resources to reduce the impact of location-specific risks, but also to benefit from arising location opportunities. In this perspective, the paper outlines modalities, individually and in combination, in developing location flexibility and discusses fundamental managerial tradeoffs between cost efficiency and imitability associated with these modalities. The study has important implications for ongoing debates on global sourcing and organizational flexibility.
Original languageEnglish
Publication date2018
Number of pages7
Publication statusPublished - 2018
EventAIB 2018 Annual Meeting: Global Business and the Digital Economy - Hyatt Regency Minneapolis, Minneapolis, United States
Duration: 25 Jun 201828 Jun 2018
Conference number: 60
https://aib.msu.edu/events/2018/

Conference

ConferenceAIB 2018 Annual Meeting
Number60
Location Hyatt Regency Minneapolis
CountryUnited States
CityMinneapolis
Period25/06/201828/06/2018
Internet address

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Cite this

Jensen, P. D. Ø., Manning, S., & Petersen, B. (2018). Location Flexibility in Global Sourcing: Modalities and Tradeoffs in an Era of Increased Volatility. Paper presented at AIB 2018 Annual Meeting, Minneapolis, United States.