The role of relational capabilities in the organization of international sourcing activities: A literature review

Industrial Marketing Management 38 (2009) 903–913

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Industrial Marketing Management

The role of relational capabilities in the organization of international sourcing activities: A literature review Alessandro Pagano ⁎ Facoltà di Economia, Università degli Studi di Urbino “Carlo Bo”, Via Saffi 42, 61029 Urbino, Italy

a r t i c l e

i n f o

Article history: Received 27 June 2008 Received in revised form 1 February 2009 Accepted 17 February 2009 Available online 9 September 2009 Keywords: Multinational companies Relational capabilities International sourcing

a b s t r a c t Multinational companies (MNCs) establish subsidiaries in various countries, spreading the value chain internationally and fostering the involvement of external partners. The global supply network has become a major source of the total value generated by MNCs, which are pushed to develop “relational capabilities” to interact with their suppliers. The main objective of this article is to assess the current understanding in the academic literature of the intra-organisational dimension of relational capabilities, focussing on the adoption of internal mechanisms supporting international sourcing activities. A total of 47 articles are identified and assessed. The literature review shows that thus far fragmented and in some areas limited research has been conducted on the development of relational capabilities by MNCs within international sourcing activities. Research efforts have been placed mainly on the examination of organisational units active in international sourcing and on control and management processes, while less attention has been paid to knowledge management solutions. © 2009 Elsevier Inc. All rights reserved.

1. Introduction Foreign direct investment flows have greatly increased over the past twenty years, illustrating the international projection of firms pursuing the development of production networks and the exploitation of market and technological opportunities. Multinational companies (MNCs) establish subsidiaries in various countries, spreading the value chain internationally. This pattern has been characterized by the adoption of complex organisational mechanisms, whose goal is to facilitate coordination and integration of activities implemented in highly different local contexts in terms of economic, social and institutional dimensions (Bartlett & Ghoshal, 1989; Doz, Santos & Williamson, 2001). In addition to managing such internal networks of relations, MNCs foster the involvement of external partners, located both at home and in foreign countries, in undertaking operational activities, such as product development and production. The external network shows a highly articulated and complex structure, in light of the strong variety of contexts where units operate (Castellani & Zanfei, 2006; Forsgren, Holm & Johanson, 2005). Foreign suppliers are increasingly engaged in a wide range of activities, which includes the supply of raw materials, the production of inputs and components and in many cases also the design and production of the whole product for the customer company. For this reason, the global supply network has become a major source of the total value generated by MNCs, which

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actively search for lower costs and lead-time and for access to valuable resources (Kotabe & Murray, 2004; WIR, 2001). Successful integration of external suppliers by the MNC requires careful production planning and selection of capable suppliers, in order to achieve higher economies of scale, operational synergies and coordination among subsidiaries’ supply policies. MNCs’ unit performance is shaped by the behaviour of suppliers in achieving the required standards in terms of costs, quality and delivery. Thus MNCs are increasingly pushed to implement effective international supplier management practices in order to align supplier's activities to their strategic and performance objectives. Such efforts might require the development of specific “relational capabilities”, which comprise organisational solutions, procedures and competences concerning both the intra (Goerzen, 2005) and inter-organisational dimensions (Li & Ogunmokun, 2001). In light of the strategic relevance of supply network performance for MNCs, this paper aims to shed some light on the development of “relational capabilities” by MNCs in their management of international sourcing activities. Specifically, the main objective is to assess the current understanding in the academic literature of the intraorganisational dimension of relational capabilities, focussing on the adoption of internal mechanisms supporting international sourcing activities concerning products, technologies and knowledge. This topic is relevant for two main reasons. Firstly, this paper aims to shed light on the organizational capabilities required for implementing international sourcing activities, following the suggestion by Quintens, Pauwels and Matthyssens (2006: 889) in their comprehensive review of published contributions on the topic of global purchasing: “more effort

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is needed in identifying and measuring purchase-related resources and capabilities”. The set up of new and specific intra-organisational mechanisms and solutions represents a visible and concrete evidence of MNCs' willingness to upgrade the management of interactions with international suppliers, attempting to exploit learning processes and knowledge dispersed within the company, which are often the result of the experience in the management of inter-organizational relations. In this line of reasoning, while examining antecedents and performance consequences of international outsourcing, Mol, van Tulder & Beije (2005: 615) highlight the possible role of “learning, experience and organisational procedures” in the management of relations with international suppliers. This paper contributes to filling these gaps by introducing the relational capabilities concept developed in management studies to examine international sourcing activities. Secondly, it could be argued that the combination of relational capabilities and MNCs' organization concepts could provide reciprocal benefits in terms of theoretical advancement. On the one hand, the analysis of the role of relational capabilities in international sourcing activities might offer stimulating conceptual insights on the more general theme of the interaction between the MNCs' internal and external networks, which is considered a relevant issue in the international business field (Westney, 1990) and is explored in a few recent studies (Li & Ogunmokun, 2001; Goerzen, 2005; Andersson, Forsgren & Holm, 2005, 2007). On the other hand, in light of its complexity the area of international sourcing could be considered a stimulating research field in which to develop management theories and concepts further (Quintens et al., 2006). The MNC could be conceived of as a “research context” (Roth & Kostova, 2003) in which to examine the concept of relational capability, which is a relevant and emerging issue within management research. The remainder of the paper is structured into four paragraphs. The second paragraph critically examines the concept of “relational capability”, as recently proposed in the fields of strategic management, industrial marketing and purchasing and international business. The third paragraph introduces the literature review methodology and analyzes the contributions on the organizational solutions adopted by MNCs to support international sourcing activities. The fourth paragraph discusses the research results and proposes further avenues for both empirical and theoretical research, while the fifth one points out the managerial implications.

2. Relational capabilities as an emerging theme in the fields of strategic management, industrial marketing and purchasing and international business This paragraph addresses the recent debate on the topic of relational capabilities through the analysis of the main contributions in the strategic management, industrial marketing and purchasing and international business literature. There is broad evidence that firms are engaged in relations with other actors able to provide resources and support for production, technology development and marketing activities (Narula & Hagedoorn, 1999; Inkpen, 2001). The development of relational strategies, however, is characterized by increasing complexity. Firms are involved in different network architectures with a variety of partners (Capaldo, 2007), showing a range of relationships based on simple market transactions at one extreme and intense partnerships at the other. On the latter side of the spectrum, cooperative relations might be perceived as “strategic alliances” in light of their relevance for gaining competitive advantage (Dyer & Singh, 1998). Inter-firm relations often show the coexistence of both cooperative and competitive attitudes, which has been qualified as “coopetition” (Branderburger & Nalebuff, 1996). Moreover, partnerships among firms are not always in line with expectations. Various empirical studies highlight strategic alliances in crisis (Das & Teng, 2000; Park & Ungson, 2001). Therefore, the management of firm's

external relations has become a strategic issue for companies and an emerging topic for academic scholars. Studies on strategic alliances have focussed, inter alia, on factors shaping success and performance of the alliance, placing emphasis on variables such as trust, commitment, governance mechanisms and complementarity of resources (Mohr & Spekman, 1994; Inkpen, 2001; Ireland, Hitt & Vaidyanath, 2002), while highlighting the role of social networks in the evolution of the partnerships (Hutt, Stafford, Walker & Reingen, 2000). Some authors propose the integrative concept of “cooperative competency”, which depends on the degree of trust, communication and coordination of a specific relationship among different organisational units (Sivadas & Dwyer, 2000). Other contributions highlight the internal attributes of the firm shaping the performance of joint activities with external partners, introducing the concepts of “relational capability” (Lorenzoni & Lipparini, 1999; Capaldo, 2007; Kale & Singh, 2007), “alliance capability” (Kale, Dyer & Singh, 2002: Heimeriks, 2004; Heimeriks & Duysters, 2007) and “alliance competency” (Zajac, 1998). These studies bring to light three main features. Firstly, strong emphasis is placed on experience and learning processes through which the firm is able to acquire and develop knowledge about how to manage its network of relations (Kale & Singh, 2007). Secondly, such knowledge-related processes lead to the set up of specific organisational mechanisms concerning the management of external relations (Kale et al., 2002). Such mechanisms represent a complementary resource with respect to relational assets, such as trust and communication intensity, which are developed within the social dimension of the interaction. They might represent organizational resources difficult to imitate by other competing companies. Thirdly, the research focus emphasises the pursuit of integrated management regarding a wider range of relations, implemented mainly through common approaches and organisational mechanisms (Heimeriks, 2004; Capaldo, 2007). Various authors, however, underline the continued lack of in-depth studies on the main elements of such capabilities and the necessary conditions for its development (Zajac, 1998; Kale et al., 2002; Heimeriks, 2004). According to Kale (et al., 2002: 748-749) “detailed studies of what exactly constitutes an alliance capability are virtually non-existent; (…) we still lack knowledge with regard to what is involved in developing an alliance capability”. Recent contributions attempt to fill this gap. Schreiner and Corsten (2004) propose the concept of “collaborative capability”, highlighting the relevance and complementarity of three distinct dimensions: the structural dimension, related to the relationship-specific investments supporting interfirm exchanges; the cognitive dimension, concerning the learning and knowledge transfer processes; the affective dimension, which is shaped by the emotional and social linkages among individuals involved in the exchange. Other authors (Heimeriks, 2004; Heimeriks & Duysters, 2007) develop an in-depth analysis of internal organisational mechanisms for the management of external relations: “an alliance capability is posed to consist of the institutionalised managerial mechanisms a firm has in place to manage and optimise its alliance performance” (Heimeriks, 2004: 24). The main objective is to disentangle specific components of relational capabilities at the micro-level, moving beyond the setting up of organisational units already highlighted in the literature and focussing on specific organisational practices implemented by firms (Szulanski, 1996, Kostova, 1999). Such mechanisms are related to learning processes and are structured into four main elements: functions, such as an Alliance Department in charge of alliance-related tasks; tools, such as an information system to support knowledge management flows; management and control procedures, such as an incentives system to monitor and promote learning processes; the involvement of external actors, such as consultants, able to provide knowledge resources related to the management of the partnership. The issue of managing relations with external actors is also addressed by studies in the field of industrial marketing and purchasing.

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Contributions developed within the IMP approach highlight the complex nature of the management of external relations with other organizations (Ford, Gadde, Hakansson & Snehota, 2002), due to the continuous interaction among companies detaining heterogeneous objectives and resources, which cannot be controlled by one company alone in pursuing its targets. Each company, therefore, has a limited ability to choose and implement its own relational strategy in light of the interdependence on choices and behaviours by interacting external companies. As a consequence, external networks cannot be controlled by one single company. In this line of reasoning, companies' networking is not unidirectional but interactive and is characterized by limited freedom and a combination of cooperation and competition. A few contributions within this stream lead towards a more complex picture of interaction patterns. In an early study, Håkansson (1987) introduced the concept of “networking ability”, defined as the ability of a company on one hand to strengthen its role in the network in terms of resources and activities, and on the other to manage effectively each relationship with external partners. Therefore, this position seems to recognize both the network and the individual levels. More recent studies attempt to gain a better understanding of the firm's ability to interact with external actors along various analytical dimensions. Firstly, there is a recognition that firms might develop specific competences to face the interaction with external organizations and that the involvement in networks could show a wide range of outcomes, from full control to passive adaptation (Ritter, Wilkinson & Johnston, 2004). Secondly, this kind of networking ability comprises various levels, including the inter-personal dimension and the competences detained by single managers on the one hand and the network level on the other (Gemunden & Ritter, 2003; Gray, 2004). Thirdly, the role of “interaction capabilities” could be assessed only within the specific relationship, notably in relation to the perceived importance attached by the partner company (Johnsen & Ford, 2006). Lastly, the intra-organisational dimension is highly relevant for better understanding the interaction with external organizations (Ivens, Pardo & Tunisini, 2007; Ford & McDowell, 1997), notably in those cases where firms adopt ad hoc organisational units dealing with strategic partners (McDowell & Ford, 2001; Salle, Cova, Ivens & Pardo, 2007). There is a wide consensus in international business research over the strategic relevance of the external network of firms and institutions for the competitiveness of the MNC (Doz et al., 2001; Andersson et al., 2002). Surprisingly only a few authors attempt to develop the concept of relational capabilities within the international business context. Buckley, Glaister and Husan (2002) highlight the complex web of relations, including those within the MNC, shaping international jointventure partnerships and focus in detail on the actual content of skills to be deployed to manage them. Li and Ogunmokun (2001) underline the role of relational capabilities, conceived of as the combination of interfirm relationship intensity and cooperation, in shaping the performance of exporting activities. In a recent contribution, Goerzen (2005) examines the main organisational solutions adopted internally by MNCs to manage external partners. This study shows how some MNCs set up specific units for alliances management at the HQ, regional or national level. In other cases MNCs establish positions such as “relationship managers” or units such as “ad hoc alliance task forces” to strengthen and “institutionalize” existing strategic partnerships. Despite the emphasis on relations with external actors, it seems that thus far international business studies have only paid very fragmented attention to research of “relational capabilities”. Therefore the most recent literature recognizes the increasing complexity for firms in the management of relations with external partners and highlights the need to uncover those organisational capabilities supporting such interactions. Most studies attempt to explain relational patterns by pointing out the role of organisational processes and capabilities in addition to relationship-specific factors. Within different disciplines, there is increasing consensus regarding the

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need to develop a better understanding on the intra-organisational dimension of the management of external relations, which is perceived as the new challenge in alliance management (Goerzen, 2005). The conceptual framework developed and applied empirically by Heimeriks (2004) and Heimeriks and Duysters (2007) is promising in this direction. They combine the main components of relational capabilities emphasized in the literature, such as the organisational configuration, comprising specific units and organizational mechanisms, and the learning processes. 3. Relational capabilities in international sourcing activities This paragraph analyses the current understanding of relational capabilities within international sourcing activities by MNCs. The first section outlines the literature review approach, while the following section provides an overview of the features of selected articles with respect to their content and methodology. The third section examines the role of relational capabilities within international sourcing activities as addressed in the reviewed literature. 3.1. The literature review approach One of the main challenges for MNCs is to implement effective and efficient coordination mechanisms among all subsidiaries and operational units while interacting with external partners. In the last decade international supply networks have become a main source of competitive advantage in terms of availability of technological and organisational competences and access to lower operational costs. International sourcing is increasingly perceived as a strategic tool for leveraging such advantages and there is increasing recognition that companies engaged internationally should consider the development of organisational capabilities in this area (Kotabe & Murray, 2004). Therefore, it is necessary to provide a critical assessment of the current understanding of the adoption of organizational solutions adopted by MNCs for managing relations within international sourcing activities. In order to pursue this research objective, this paper adopts and extends Heimeriks' (2004) concept of “alliance capabilities” as a review framework. This theoretical approach highlights four main “intra-organisational mechanisms”. Firstly, it emphasises the setting up of functions, which are defined as “individual positions or units that manage a number of critical tasks for a firm with respect to its alliances” (Heimeriks, 2004: 85). The establishment of an ad hoc organisational unit highlights the strategic relevance of alliances with external actors and plays an important role in the acquisition and combination of tacit and codified knowledge and in the functioning of the decision-making process concerning alliances. Secondly, this approach points out the degree of support provided by specific tools concerning knowledge management processes within the firm. They are defined as “practical mechanisms that aid in dealing with day-to-day alliance management issues by increasing know-how of particular stages of the alliance lifecycle or by raising alliance know-how throughout the firm” (Heimeriks, 2004: 88). Examples of tools are information systems and training projects, which help the firm to codify and transfer tacit and dispersed knowledge. The third component is represented by control and management processes, which are defined as mechanisms “geared toward support of specific aspects of alliance management”, such as control means and incentives (Heimeriks, 2004: 88). This paper adopts a wider definition of control and management processes by including those coordination mechanisms shaping the interaction between MNCs' internal units (Martinez & Jarrillo, 1989). The last component is represented by external parties, defined as assets used by companies “to complement their knowledge” (Heimeriks, 2004: 90). Therefore external partners, such as consultants and lawyers, are considered as “internal” units in light of their closeness to the focal firm and their ability to provide valuable knowledge concerning the critical tasks and phases of alliance management.

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This framework is useful because it focuses on those mechanisms representing “institutionalized” organisational knowledge and routines linked to experience and learning processes, providing support in the management of relations with external actors. The degree of “institutionalization” is related to the level of codification and implementation of existing organisational practices (Kostova, 1999). The existence of such institutionalized rules and procedures is visible and concrete evidence of the firm's willingness and propensity to upgrade its capability in coordinating interaction with other firms and organizations (Heimeriks & Duysters, 2007), thus moving beyond developing relationship-specific skills. Therefore this framework is deemed appropriate for exploring the variety of organisational practices adopted by MNCs and for providing answers to the various calls for inquiries on international sourcing within an organisational and knowledge perspective (Quintens et al., 2006; Mol et al., 2005). The focus of this paper is on the intra-firm organisational mechanisms in place within the MNCs to support the interaction with “backward” companies, supplying tangible and intangible inputs as suppliers. The literature review analyzes 31 relevant journals in the fields of management, international business, marketing and supply chain management for the period 1995-2007, following the approach adopted by Quintens et al. (2006) and Reynolds, Simintiras and Vlachou (2003) based on the selection of relevant journals and the analysis of content categories. The focus on the 1995-2007 period is due to the recent growth of the phenomenon of international sourcing. The choice of examining contributions developed within different disciplines stems from the need to integrate different perspectives and insights on a complex phenomenon such as international sourcing, which involves the whole value chain of internationally-oriented firms. The list of reviewed journals is shown in Appendix B. Du Bois and Reeb (2000) identified the principal journals in the field of international management. In addition, the Journal of International Management has been reviewed in light of its increasing relevance in the field and its focus on international sourcing issues. With regard to marketing, the selection of journals adopts and extends Quintens et al. (2006) approach. As well, other principal journals in the marketing field (Hult, Neese and Bashaw, 1997) have been reviewed. The selection of purchasing and supply chain management journals is based on the suggestion made by Quintens et al. (2006), who in their review consider journals devoting specific attention to the topic of global purchasing. In the area of management journals, the reviewed journals include those selected by Peng (2001). The review concerned also other journals selected by the Financial Times (2006 Survey of Top Business Schools) in the area of general management and strategy. The selection of papers has been developed through the manual review of all journals, based on the analysis of titles and abstracts and then on the examination of article content. All selected papers have been assessed with regard to the following content categories (explained below in more detail) as suggested by Reynolds, Simintiras and Vlachou (2003): topics covered, research methodology, focus on MNCs' headquarters or subsidiary level, nationality of buyer and supplier companies. Firstly, articles have been examined and classified according to the chosen framework of relational capabilities, which is based on functions, tools, control and management processes and external parties. In this paper, international sourcing has a broad meaning, including the suppliers' search, selection and management. The review, therefore, includes both contributions related to global purchasing and global supply chain management. Selected articles are concerned with organisational activities regarding international supply relationships, such as a buyer and its foreign suppliers or a local multinational buyer and its local suppliers. Regarding the organisational mechanisms, the main focus is on the intra-firm dimension of the management of international sourcing. Supplier management practices, therefore, will be considered only if they are described as “institutionalized practices”, namely those organisational processes which are accepted and implemented within the firm (Kostova, 1999).

In terms of content, this review includes articles that focus either mainly or partially on the organisational dimension of international sourcing activities. Some of the articles reviewed deal directly with the issue of managing and organizing the international supply base, while other contributions have different research objectives but make reference or highlight relevant insights in theoretical or empirical terms. The literature review does not include the intra-firm sourcing dimension, as suggested in other reviews on this topic (Liang & Parkhe, 1997; Quintens et al., 2006), and does not consider contributions dealing only with international sourcing drivers and strategies without any reference to the organisational dimension. Moreover, some articles have been excluded because of their exclusive focus on normative guidelines regarding the management of international sourcing activities and on comparative analyses among buyers in different countries (Liang & Parkhe, 1997), without any assessment of international sourcing activities implemented at the HQ or subsidiary levels. Secondly, we examine the research methodology followed in selected articles that address international sourcing activities. Contributions will be classified according to whether they are based on case-study analysis, surveys or are developed as discussion or conceptual pieces. Thirdly, articles are classified according to whether their focus is on the HQ perspective, the subsidiary perspective or both. We take this approach due to the very distinctive nature of the MNC, as recognized in the international business literature, which is composed by a network of units operating in different local environments (Bartlett & Ghoshal, 1989). It is necessary to verify whether existing studies on international sourcing take into account the complex network structure of most MNCs and thus provide a more or less deep analysis of the organizational processes on the international scale. Finally, articles are classified on the basis of the nationality of investigated multinational buyer companies and supplier companies, where such identification is possible. This will allow us to gain insights into the geographical focus of the empirical analysis and on degree of attention to the involvement of companies located in emerging and third world markets. This methodological approach has some limitations. Firstly, the selection of academic contributions does not include other journals, books and non-English publications. The analysis of the main journals in the disciplines mentioned, however, provides a picture of the current interest and focus on the topic of relational capabilities in international sourcing activities. Secondly, the review is based on a subjective assessment of categories in the selected articles. In order to address this limitation, at least in part, the categories under analysis are considered as mutually exclusive. 3.2. Features of reviewed articles A total of 47 articles were identified and assessed (articles are listed in Appendix A). A large number of articles dealing exclusively with drivers, motivations, strategies and consequences of global/ international sourcing/purchasing were excluded. A large group of the studies (22 articles) are published in purchasing and supply chain management journals, which devote attention to the international dimension of supply management and are also concerned with the organizational configuration of these activities (see the Appendix B). Marketing journals devote less attention to this topic, perhaps due to the prevailing emphasis on supplier rather than buyer perspectives. As well, management and international business journals pay less attention to the organisational dimension of international sourcing activities. With regard to management journals, the reviewed contributions are published mainly in more practitioner-oriented journals, while various leading outlets have not dealt with the issue at all. International business journals show limited attention to the organisational dimension of international sourcing activities when

A. Pagano / Industrial Marketing Management 38 (2009) 903–913 Table 1 Main methodological approaches.

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Table 3 Country of origin of suppliers.

Methodology

Number of articles

Country of origin of suppliers

Number of articles

Case-study Survey Discussion Conceptual

23 18 1 5

US Ireland Portugal Romania Brasil Singapore China Malaysia/Vietnam NA⁎

1 2 1 1 1 1 8 1 31

compared to their strategic profile, as highlighted by Quintens et al. (2006) in their literature review on global purchasing. This result is not in line with the increasing attention towards global sourcing and off-shoring related phenomena. The timing of publications shows two distinct “waves” (see the Appendix B). The first one is at the end of the ‘90s, which could be related to the initial discovery of global sourcing and purchasing practices by MNCs (Giunipero & Monczka, 1997; Arnold, 1999). The second one is currently under way and could be related to the recognition of the relevance and diffusion (Trent & Monczka, 2005; Quintens et al., 2005) of the global sourcing and off-shoring phenomenon as well as to the increasing involvement of emerging market companies, such as Chinese suppliers (Salmi, 2006; Giroud, 2007). In terms of methodological approach, most of the articles are casestudy or survey-based (Table 1). This result is in line with the objective of this literature review, which places specific emphasis on organisational practices and solutions implemented by MNCs in managing international sourcing projects. Notably, the development of case-studies could be due to the exploratory character of the research effort, as this approach is able to provide more in-depth knowledge of internal processes and organisational procedures. The review of selected articles shows that a greater number of articles (20 of 47) provide insights exclusively on the HQ perspective. This is related to a specific focus on global sourcing approaches. Fewer articles (12) deal with the subsidiary perspective, placing emphasis on the organisational requirements for interacting with local actors. An interesting and also promising finding is that a relevant number of articles (15) focus on both levels. It could be argued that this type of approach is more in line with the complexity of international sourcing activities. It is also relevant to review the literature in terms of the international context in which empirical research takes place (Tables 2 and 3). When information was available, 28 articles emphasised the multinational buyer side in advanced countries, specifically on US, European and Japanese MNCs. One article focused on the behaviour of buyer companies from Taiwan, which could be qualified as a recently industrialized country. No empirical research has been conducted in the reviewed journals on MNCs from emerging markets, such as India, Russia, China, Brazil. This is a major gap in the advancement of research in management, given the increasing role of companies from such areas as customers of Western-made products and technologies and as new actors in the international flows of foreign investment. Sixteen articles provide information regarding supplier perspectives. In 5 cases the analysis is developed on suppliers located in industrialized

⁎ Data not available.

countries, while in the remaining 11 articles the suppliers identified originate from emerging countries. A major focus of these articles is the management of international sourcing activities involving Chinese suppliers. This finding is in line with the growing emphasis on conducting international business research addressing the complexity of managing MNCs' operations in China. 3.3. The analysis of components of relational capabilities The review of articles is conducted on the basis of Heimeriks' framework of relational capabilities, which is made up of a combination of functions, tools, control and management processes and the involvement of external parties. The results of the analysis of each component of the relational capabilities framework are shown in Table 4. The main focus is on control and management processes, therefore on those organizational mechanisms adopted to coordinate international sourcing activities. Various articles highlight the role of functions and tools, while only three articles make reference to the involvement of external parties in order to support the interaction with international suppliers. All the components are examined critically and in more detail in the following sections. 3.3.1. Functions There is evidence that MNCs set up new organizational units in order to achieve more coherent and efficient management of international sourcing activities (Giunipero & Monczka, 1997). At the corporate level the MNC might set up an Executive Steering Committee (Trent & Monczka, 2005), whose goal is to promote and supervise global sourcing processes to be implemented. In light of the complex nature of such activities, top management commitment is highlighted as a crucial factor in developing a global sourcing approach diffused within the MNC. At the corporate level, MNCs set up various organizational arrangements such as international purchasing groups (Lihong & Goffin, 2001; Giunipero & Monczka, 1997), global sourcing project teams (Trent & Monczka, 2003), product teams for sourcing components and materials (Fynes & Ainamo, 1998), lead buying systems (Gelderman & Semeijin, 2006), and corporate contract coordinators (Giunipero & Monczka, 1997). These organizational solutions have different features in light of the international or global approach and of the timing of the mandate, which could be temporary or permanent. The composition of such units

Table 2 Country/Region of origin of multinational buyers. Multinational buyer country/region

Number of articles

US Europe Japan US/Europe Taiwan NA⁎

10 9 2 1 1 24

⁎ Data not available.

Table 4 Number of articles addressing the components of relational capabilities. Topic

Number of articles

Functions Tools Control and management processes External parties

14 14 42 3

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reflects various combinations of corporate, functional and site personnel (Trent & Monczka, 2003). The involvement of representatives of a high number of internal actors is relevant for spreading an international approach in sourcing culture (Giunipero & Monczka, 1997). Moreover MNCs identify external personnel who might provide additional support if needed (Trent & Monczka, 2005). A relevant dimension is the degree of alignment between the corporate centre and the operational units, often represented by industrial plants dealing with the international, national and local supply bases. One solution adopted is the involvement of a Liaison Manager among global sourcing teams and operational units (Trent & Monczka, 2003). Other studies highlight the geographical spread of units involved in purchasing within the MNCs, such as Regional Sourcing Committees (Arnold, 1999), International Purchasing Offices (IPOs; Giunipero & Monczka, 1997; Goh & Lau, 2001) and purchasing personnel in foreign subsidiaries (Giunipero & Monczka, 1997). Many authors highlight the increasing propensity of MNCs to set up IPOs, which can be more easily controlled by the corporate center and are appropriate for developing specialized knowledge and skills in searching and managing foreign suppliers. Another solution highlighted in the literature is the delegation of international sourcing activities to trading companies, belonging to the MNCs, which are often active both in purchasing and marketing activities (Giunipero & Monczka, 1997). This option might be qualified as “captive outsourcing”, concentrating all purchasing-related processes within a single and separate company within the MNC group. 3.3.2. Tools Various authors deem the availability of qualified and skilled personnel a crucial factor for achieving performance targets in international sourcing activities (Trent & Monczka, 2002, 2003; Harvey & Richey, 2001; Hult & Farrell, 1997). Specifically, Petersen, Frayer and Scannell (2000: 32) define “global sourcing business capabilities” as composed by “1) awareness of cross-cultural business practices; 2) managing international lead-time risk or uncertainty, 3) knowledge of the location of core-information, experience and competencies worldwide for critical purchased items, and 4) international negotiation skills and abilities”. A major hurdle to overcome is the heterogeneity of purchasing personnel, assigned to various sites and operational units, in terms of sourcing competences and skills (Trent & Monczka, 2003). Upgrading the knowledge retained by personnel is therefore perceived as a primary goal to be pursued in order to achieve homogeneity in international sourcing competences. Despite the recognition that knowledge is a critical component for strengthening organisational capabilities in international sourcing, none of the reviewed articles is explicitly focused on the development of organisational practices in the area of knowledge management. Only a few studies make reference to specific organisational processes. The transfer of knowledge is promoted through training projects and initiatives at the corporate and operational level (Petersen et al., 2000; Trent & Monczka, 2002; Quintens et al., 2005), in sourcing-related areas such as negotiation strategies and skills (Trent & Monczka, 2002). Chen (2003) and Trent and Monczka (2003) highlight the effort involved in collecting data and setting up databases with common coding schemes for managing information on current and potential international suppliers. ICTs and particularly intranet solutions provide an infrastructure for the diffusion within all MNCs' units of global sourcing-related manuals, rules and templates (Trent & Monczka, 2003). The area of tools for knowledge management in international sourcing deserves to be explored more in depth in light of the relevance of learning processes for adopting new and innovative organisational mechanisms. The reviewed articles mention training projects, but there is no analysis of how such initiatives are chosen, organized and implemented. In particular, research on training projects for international sourcing activities could explore the type of subjects to be taught in more detail, in light of the their increasing complexity. With regard to ICTs, more research could be conducted on the introduction process of

such tools within international sourcing activities, notably on the impact on existing knowledge management mechanisms, which are often based mainly on socialization processes. 3.3.3. Control and management processes The reviewed contributions highlight various control and management processes in the area of international sourcing. They could be distinguished by degree of centralization and typology of coordination mechanisms. The degree of centralization, the relationship between the corporate level and the operational level, are considered major issues in international sourcing activities under an organizational perspective. This is due to the complex nature of the interaction among the HQ on one side and business units and subsidiaries on the other (Arnold, 1999; Vestring, Rouse & Reinert, 2005; Faes, Matthyssens & Vandenbempt, 2000; Giunipero & Monczka, 1997; Veludo, MacBeth & Purchase, 2004). Various conceptual frameworks have been developed from empirical research on this subject. Giunipero and Monczka (1997) distinguish four different configurations: firstly, the MNC might choose decentralized international purchasing, which is characterized by autonomy of business and operational units. Secondly, the top management could implement coordinated international purchasing, which shows some degree of coordination within the MNC. Thirdly, the MNC could establish centralized responsibility for worldwide purchasing in which the corporate center has decision-making powers concerning international purchasing. Lastly, the MNC could set up functionally unique international purchasing groups specializing in foreign sourcing, which have a distinct role and a specialization in the area. Reaching similar conclusions, Arnold (1999) also identifies a central purchasing model and a coordination model and highlights the practice by MNCs of the “outsourcing model”, which implies moving towards decentralization placing specific operational and autonomous units in charge of international purchasing. In a more recent contribution, Trent and Monczka (2002) underline different levels of purchasing which might be undertaken by MNCs within their international expansion. The most articulated forms are those based on global sourcing, which might involve integration and coordination within the purchasing function and, at a higher level, also with other functional units. The degree of centralization in international sourcing depends, as shown by Gelderman and Semeijn (2006), also on the product characteristics and strategic relevance. Other studies make reference to specific coordination practices adopted to facilitate the implementation of international sourcing strategies. The MNC HQ promotes the standardization of supply processes and practices worldwide, thus requiring subsidiaries to follow guidelines while dealing with local suppliers (Trent, Monczka, 2005; Veludo et al., 2004; Taylor, 1999; Lihong & Goffin, 1999, 2001). This implies that such rules have gained a formal dimension and are very detailed (Faes et al., 2000; Giunipero & Monczka, 1997). Standardized supplier management practices adopted by HQ and subsidiaries are implemented in various areas, such as activities concerning selection and monitoring criteria and procedures of suppliers (Gelderman & Semeijin, 2006; Mascarenhas, Baveja & Jamil, 1998; Trent & Monczka, 2003), and communication channels and tools to be used to manage exchange of information with suppliers such as software platforms and direct site visits by HQ purchasing personnel (Mascarenhas et al., 1998; Levy, 1997; Trent & Monczka, 2003). Some contributions (Carter, 2000) also highlight the ethical dimension of supplier management practices, which implies the adoption and implementation of ethics policies and codes, ethics training and post-purchase audits. The development of standardized supplier management practices is facilitated by other organizational tools. Trent and Monczka (2005) refer to the adoption of global sourcing agreements as an important tool for undertaking global sourcing relations, while Wouters, van Jarwaarde & Groen (2007) highlight that local subsidiaries implement supplier

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development practices to upgrade their suppliers. Even though such mechanisms are considered very relevant for the development of global sourcing approaches, their establishment process and organizational structure are not examined in depth. There is evidence, therefore, that MNCs consider standardization as a primary coordination mechanism. Some contributions highlight the possible conditions for its diffusion. The adoption of common standard approaches and procedures is facilitated by increasing social interaction among international purchasing personnel, which could be promoted through formal and informal meetings (Faes et al., 2000; Trent & Monczka, 2002; Nellore, Chanaron & Soderquist, 2001), where MNCs' departments and units might exchange proposals and knowledge about international sourcing strategies and solutions. Information flows are crucial to developing a global sourcing approach (Faes et al., 2000), and therefore various channels such as electronic mail, video-conferencing and face-to-face communication are implemented (Trent & Monczka, 2002). Another relevant component of international sourcing coordination activities is the management of human resources (HR)-related aspects, which influence the behaviour of managers involved in these processes. Only a few articles focus on this dimension, although it is considered strategic in the analysis of MNCs' organizational configuration. The topic of personnel selection is addressed by Harvey and Richey (2001), who propose a framework for selection management for global supply chain managers. The authors underline three distinct categories as selection criteria: analytical intelligence, practical intelligence and creative intelligence. Other contributions highlight specific aspects of HR management: Petersen (et al., 2000) underline the role of employee rewards for providing incentives to global sourcing managers. Other authors point out the orientation of international purchasing teams towards cooperative behaviour (Hult, 1999) and the duration of positions within global sourcing teams (Trent & Monczka, 2003). In a recent and stimulating article, Quintens (et al., 2006b) attempt to provide a more integrated and theoretically-based vision of control and management processes in international sourcing. The authors propose the concept of “global purchasing strategy” as a theoretical construct whose goal is to provide an integrated perspective, related to the resource-based approach, on the intra-company dimension of global purchasing based on degree of centralization, configuration and standardization, which includes purchasing personnel standardization. 3.3.4. External parties Only a few reviewed contributions address the role of external parties in supporting the development of the relationship between the MNC and its suppliers. One of the main insights of the article by Quintens (et al., 2005) is the relevance of intermediaries, which can support the company in activities such as supplier search, insurance and customs management. Arnold (1999) illustrates the involvement of trading companies in international sourcing activities: such organizations are external to the company under examination, but in terms of ownership belong to the same group. Gripsrud and Benito (1995) emphasise the activities played by institutional actors, such as Import Promotion Offices, in helping mainly small and medium firms in managing relations with suppliers located in developing countries. Other studies do not focus specifically on such actors, but make reference to existing interaction between MNCs and external actors supporting the management of relations with suppliers. Trent and Monczka (2003) highlight the case of a MNC using data on suppliers provided by an external source and involving an external consultant to develop software solutions to implement global sourcing activities. 4. Discussion of results This section develops the discussion of results along two distinct paths. Firstly, it provides an assessment of the reviewed literature on the role of relational capability components in the management of

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international sourcing activities, highlighting both achievements and gaps and linking results to the current debate on relational capabilities. Secondly, it outlines the main contributions of the paper under an academic perspective and possible avenues for further research. The literature review shows that thus far fragmented and in some areas limited research has been conducted on the development of relational capabilities by MNCs within international sourcing activities. While the strategic dimension of global sourcing behaviour is increasingly debated in the management literature (Quintens et al., 2006), contributions in the management field devote less attention to the organisational dimension of MNCs' international sourcing activities. It could be agreed that “while many studies have concluded that there is a need to develop global sourcing processes and strategies and to view global sourcing as an important strategic tool, details concerning how to achieve this are few” (Trent & Monczka, 2003: 611). In terms of empirical research, this review shows that more research has been carried out on organizational practices in terms of functions and coordination mechanisms, while less attention has been devoted to knowledge management tools and external parties. Overall, there is lack of systematic and comprehensive study of the main intra-organizational mechanisms supporting international sourcing activities. In terms of functions, the analysis of selected articles shows that research efforts have been placed on the examination of organisational units active in international sourcing. MNCs pursue global sourcing projects and therefore set up a wide range of units with different hierarchical positions, internal compositions and geographical spread. These efforts are in line with various contributions in the management literature which conceive of the establishment of ad hoc organisational units as primary evidence of the propensity of firms to strengthen their organisational capabilities while interacting with external partners (Kale et al., 2002; Salle et al., 2007, Goerzen, 2005). While reviewed studies provide an extensive range of organisational units that perform international sourcing, no detailed analysis is conducted on conditions and processes leading to the establishment of such mechanisms and to the type of choices made. This gap marks a relevant difference with some of the most in-depth studies within the management literature (Goerzen, 2005; Salle et al., 2007). The reviewed articles emphasise the role of specific control and management processes for implementing international sourcing activities. This result is in line with the consolidated academic research in the international business field on the management of control and coordination mechanisms in MNCs (Martinez & Jarrillo, 1989; Andersson et al., 2002). Moreover, such efforts underline the relevance of managing interaction patterns among units operating within highly complex organizations as MNCs. This specific dimension contributes to strengthen the emphasis on the internal network dynamics highlighted by some recent studies within the industrial marketing and purchasing literature (Ivens et al., 2007; Ford & McDowell, 1997). In conceptual and empirical terms, however, the main patterns and the role of human resources management policies and practices have not been investigated through exhaustive and indepth research. It could be argued that more research is needed on HR-related aspects of international sourcing activities given the high degree of interaction and often strong relationships (also at the interpersonal level) between MNCs' purchasing managers and their counterparts. Aspects such as personnel turnover policies and use of expatriate or local staff in subsidiaries deserve specific research focus. This literature review also shows that research on knowledge management tools in international sourcing activities is still marginal. Knowledge acquisition and dissemination and “information availability” (Trent & Monczka, 2003) are crucial dimensions of international sourcing activities, and therefore research on the variety of “supporting resources” and on the conditions that may or may not facilitate their development is highly needed. Research on these issues might provide valuable knowledge concerning the transfer and replication of “best practices” within the MNCs' internal network of subsidiaries, which

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might be affected by lack of homogeneity in terms of competences and implementation of organisational practices. Various studies on MNCs' organisational configurations have shown that the transfer of “best practices” within the MNC is a major challenge in the international expansion process (Kostova, 1999). With regard to the role of external parties, the considerations regarding the involvement of intermediaries (Quintens et al., 2005) in international sourcing represent a stimulating first step which should be followed by additional investigation. More research is needed on the role of external parties in supporting international sourcing activities. The reviewed contributions offer interesting, however limited, insights as to possible patterns to be further investigated. Firstly, it would be interesting to gain additional knowledge about the typology of partners most frequently approached by MNCs, such as intermediaries, consulting companies, institutional organizations, universities and research centres. Secondly, it would be appropriate to investigate more exhaustively the kind of knowledge-related activities implemented by external parties, such as search and selection of suppliers, negotiations support, monitoring services. Even though limited in terms of empirical research, these contributions offer new insights into the role of external parties compared to existing studies on relational capabilities. External organizations could play an active role as knowledge providers by supporting relations with external partners, and thus could be perceived almost as “internal” units, being part of the network composed by partner companies and organizations. This paper, therefore, contributes to the academic understanding of international sourcing activities in two ways. Firstly, it provides the first literature review addressing the role of intra-organisational mechanisms in the management of international sourcing activities. Final results show that research on this theme is highly fragmented and thus far no focused and systematic effort has been made to explore empirically the organisational capabilities developed by MNCs while implementing international sourcing activities. Thus this effort is complementary to existing reviews on global and international sourcing addressing strategies, motivations and barriers (Quintens et al., 2006). Furthermore, it provides stimulus to conduct theoretically grounded empirical research on the intra-organizational mechanisms and solutions for the management of international sourcing. As argued before, a variety of organisational practices have been uncovered. With only a few exceptions on aspects related to coordination processes, however, no detailed examination of evolutionary patterns and determinants has been developed thus far. Secondly, this paper shows that MNCs could provide a valuable “research context” in which to apply and further develop theoretically the concept of relational capabilities and its main components. Struggling to balance the global and local dimensions of external sourcing and to manage the interplay between the internal network of operational units and the external partners, MNCs are aware of the relevance of specific organisational solutions to address such challenges. It could be argued that the analysis of relational capabilities could be further advanced by an effort in to integrate the organisational upgrading process – the main focus of this paper - with relationship-specific assets such as tacit knowledge and trust. The ability of the MNC to operate in extremely complex cultural and institutional environments depends on the one hand on the organisational effort aimed at pursuing the coordination and standardization objectives with regard to the external network, and on the other hand on the capacity to actively and effectively interact with local partners, based on the development of trust and effective social networks. Various contributions on the topic of global sourcing (Quintens et al., 2006b; Petersen et al., 2000) underline the need to take into account relationship-specific skills retained by MNCs. This implies that research on firms' relational capabilities should place emphasis and effectively integrate both the intra and the inter-organizational dimensions. The current debate in the management literature shows stimulating efforts in this direction.

5. Managerial implications We may derive relevant managerial implications from this review of the role of relational capabilities in international sourcing. The management of international supply relationships represents a very complex and demanding task for the buyer firm, in light of the wide variety of business contexts and partner companies. Firms are already attempting to improve the efficiency and effectiveness of their approaches towards the management of interaction with foreign suppliers, and are paying increasing attention to the search, evaluation and monitoring processes. This paper suggests that both large and small buyer firms engaged in international sourcing need to consider adequately the development of an organisational upgrading process of their global supply management approach in order to improve their integration and coordination capabilities in this area. Such efforts could be developed within the intra-organisational dimension along four main directions, as we suggest in this paper. Firstly, if companies deal with highly complex international supply networks, a careful assessment of the possible benefits of specific organisational units is needed. Such solutions might provide stronger coordination both in global sourcing planning and in day-to-day management, being able to overcome organizational barriers among business units active in distinct markets or segments and subsidiaries located in different countries. Secondly, MNCs' companies should promote and support learning processes in international sourcing activities. Knowledge management tools, such as the use of information technologies and the setting up of initiatives promoting inter-personal interaction and tacit knowledge transfer, represent critical resources for the effective diffusion of “best practices” in the area of international sourcing within all MNCs' operational units. Thirdly, companies should pay attention to coordination and control mechanisms directly and indirectly concerning the management of international sourcing activities. One of the main findings of this literature review is the wide recognition of the relevance of human resources within this specific activity, event though limited research has been conducted on this theme. Sourcing managers operating in international markets should be carefully selected, controlled and be subject to an appropriate and specific range of incentives, as are their colleagues employed in the area of international marketing and sales. Lastly, the management of international sourcing activities could benefit from the active involvement of external partners which operate very closely with the MNC and are fully trusted for implementing international business projects. Public organizations, such as trade promotion offices, and private firms, such as consulting companies, are able to provide highly valuable and precious knowledge and networking services with regard to potential supply sources. Having full knowledge of organisational culture and practices of customer firms, these actors could operate almost as stable “internal units” and provide strong support, especially in case of small and medium firms attempting to better coordinate international sourcing activities. The mix of intra-organisational mechanisms underlined in this paper should not be considered a fixed solution for addressing international sourcing challenges. Even though great benefits could be derived from the integrated management of such mechanisms, companies could adopt an incremental approach in implementing these organizational practices according to their strategies, size and international experience. This would allow them to pursue the main objective of flexibly and gradually making international sourcing management knowledge more “institutionalized” and diffused within the company. Appendix A. List of reviewed contributions Andersen, P. H., & Chao, P. (2003). Country-of-origin effects in global industrial sourcing: toward an integrated framework. Management International Review, 43 (4), 339-360.

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Andersen, P.H., & Christensen, P.R. (2005). Bridges over troubled water: suppliers as connective nodes in global supply networks. Journal of Business Research, 58 (9), 1261-1273. Arnold U. (1999). Organization of global sourcing: ways towards an optimal degree of centralization. European Journal of Purchasing & Supply Management, 5 (1), 167-174. Camuffo, A., Furlan, A., Romano, P., & Vinelli, A. (2006). The process of supply network internationalisation. Journal of Purchasing & Supply Management, 12 (3), 135-147. Carter, C. (2000). Precursors of unethical behaviour in global supplier management. Journal of Supply Chain Management, 36 (1), 45-56. Chen, T. (2003). Network resources for internationalization: The case of Taiwan's electronic firms”, Journal of Management Studies, 40 (5), 1107-30. Das, A., & Handfield, R. (1997). Just-in-time and logistics in global sourcing: an empirical study. International Journal of Physical Distribution & Logistics Management, 27 (374), 244-259. Faes, W., Matthyssens, P., & Vandenbempt, K. (2000). The pursuit of global purchasing synergy. Industrial Marketing Management, 29 (6), 539-553. Ferdows, K. (1997). Making the most of foreign factories, Harvard Business Review, March-April, 73-88. Fynes, B., & Ainamo, A. (1998). Organisational learning and lean supply relationships. The case of Apple Ireland. Supply Chain Management, 3 (2), 96-107. Gelderman, C., & Semejin, J. (2006). Managing the global supply base through purchasing portfolio management. Journal of Purchasing & Supply Management, 12 (4), 209-217. Giroud, A. (2007). MNEs' vertical linkages: The experience of Vietnam after Malaysia. International Business Review, 16 (2), 159-176. Giunipero, L., & Monczka, R. (1997). Organizational approaches to managing international sourcing. International Journal of Physical Distribution & Logistics Management, 27 (5/6), 321-336. Goh, M., & Lau, G. (1998). Electronics international purchasing offices in Singapore. European Journal of Purchasing & Supply Management, 4 (2), 119-26. Gripsrud, G., & Benito, G. (1995). Promoting imports from developing countries: a marketing perspective. Journal of Business Research, 32 (2), 141-148. Harvey, M., & Richey, R. (2001). Global supply chain management. The selection of globally competent managers. Journal of International Management, 7 (2), 105-128. Hult, T. (2002). Cultural competitiveness in global sourcing. Industrial Marketing Management, 31 (1), 25–34. Hult, T. (1999). A study of team orientation in global purchasing. Journal of Business and Industrial Marketing, 14 (3), 194-212. Hult, T., & Ferrell, O. (1997). Global organizational learning capacity in purchasing: construct and measurement. Journal of Business Research, 40 (2), 97-111. Humphreys, P., Mak, K., & Yeung, C. (1998). A just-in-time evaluation strategy for international procurement. Supply Chain Management, 3 (4), 175-186. Jahns, C., Hartmann, E., & Bals, L. (2006). Offshoring: Dimensions and diffusion of a new business concept. Journal of Purchasing & Supply Management, 12 (4), 218-231. Katsikeas, C. (1998). Import stimuli and import development. Management International Review, 38 (3), 215-237. Levy, D. (1997). Lean production in an international supply chain. Sloan Management Review, 38 (2), 94-102. Liang, N., & Parkhe, A. (1997). Importer behaviour: the neglected counterpart of international exchange. Journal of International Business Studies, 28 (3), 495-530. Lihong, Z., & Goffin, K. (2001). Managing the transition – supplier management in international joint ventures in China. International Journal of Physical Distribution & Logistics Management, 31 (2), 74-95.

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Lihong, Z., & Goffin, K. (1999). Joint venture manufacturing in China: an exploratory investigation. International Journal of Operations and Production Management, 19 (5/6), 474-490. Liu, R., & Brookfield, J. (2006). Japanese subcontracting in mainland China: a study of Toyota and Shanghai Koito. Supply Chain Management, 11 (2), 99-103. Mascarenhas, B., Baveja, A., & Jamil, M. (1998). Dynamics of core competencies in leading multinational companies. California Management Review, 40 (4), 117-132. Millington, A., Eberhardt, M., & Wilkinson, B. (2006). Supplier performance and selection in China. International Journal of Operations and Production Management, 26 (2), 185-201. Mol, M., Pauwels P., Mathyssens P., & Quintens, L. (2004). A technological contingency perspective on the depth and scope of international outsourcing. Journal of International Management, 10 (2), 287-305. Mol, M., van Tulder R., & Beije, P. (2005). Antecedents and performance consequences of international outsourcing. International Business Review, 14 (5), 599-617. Nellore, R., Chanaron, J.J., & Soderquist, K. (2001). Lean supply and price-based global sourcing – the interconnection. European Journal of Purchasing & Supply Management, 7 (2), 101-110. Overby, J., & Min, S. (2000). International supply chain management in an Internet environment. A network-oriented approach to internationalization. International Marketing Review, 18 (4), 392-419. Petersen, K., Frayer, D., & Scannell, T. (2000). An empirical investigation of global sourcing effectiveness. Journal of Supply Chain Management, 36 (2), 29-38. Pires, S. (1998), Managerial implications of the modular consortium model in a Brazilian automotive plant. International Journal of Operations & Production Management, 18 (3), 221-232. Quintens, L., Mathyssens, P., & Faes, W. (2005). Purchasing internationalisation on both sides of the Atlantic. Journal of Purchasing & Supply Management, 11 (2/3), 57-71. Quintens, L., Pauwels, P., & Mathyssens, P. (2006b). Global purchasing strategy: Conceptualization and measurement. Industrial Marketing Management, 35 (7), 881-91. Salmi, A. (2006). Organising international supplier relations: An exploratory study of Western purchasing in China. Journal of Purchasing & Supply Management, 12 (4), 197-208. Samli, A., Browning, J., & Busbia, C. (1998). The status of global sourcing as a critical tool of strategic planning: opportunistic versus strategic dichotomy. Journal of Business Research, 43 (3), 177187. Taylor, B. (1999). Patterns of control within Japanese manufacturing plants in Asia: doubts about Japanization in Asia. Journal of Management Studies, 36 (6), 853-873. Trent, R., & Monczka, R. (2002). Pursuing competitive advantage through integrated global sourcing. Academy of Management Executive, 16 (2), 66-80. Trent, R., & Monczka, R. (2003). Understanding integrated global sourcing. International Journal of Physical Distribution & Logistics Management, 33 (7), 607-29. Trent, R., & Monczka, R. (2005). Achieving excellence in global sourcing. MIT Sloan Management Review, 47 (1), 24-32. Veludo, M., MacBeth, D., & Purchase, S. (2004). Partnering and relationship within an international network context. International Marketing Review, 21 (2), 1425-1457. Vestring, T., Rouse, T., & Reinert, U. (2005). Hedge your offshoring bets. MIT Sloan Management Review, 46 (3), 27-29. Wouters, M., van Jarwaarde, E., & Groen, B. (2007). Supplier development and cost management in Southeast Asia – Results from a field study. Journal of Purchasing & Supply Management, 13 (4), 228-244. Zeng, A. (2003). Global sourcing: process and design for efficient management. Supply Chain Management, 8 (4), 367-379.

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Appendix B. Reviewed Journals

Journal

Number of articles 1995-1996 1997-1998 1999-2000 2001-2002 2003-2004 2005-2007

Industrial Marketing Management 3 International Marketing Review 2 Journal of Business and Industrial Marketing 1 Journal of Business Research 4 Journal of the Academy of Marketing Science, Journal of International Marketing, 0 Journal of Marketing, Journal of Marketing Research, Marketing Science Total (marketing journals) 10 International Journal of Operations and Production Management 3 International Journal of Physical Distribution and Logistics Management 4 Journal of Purchasing and Supply Chain Management 9 Journal of Supply Chain Management 2 Supply Chain Management 4 Total (supply management journals) 22 International Business Review 1 Journal of International Business Studies 1 Journal of International Management 2 Management International Review 2 Journal of World Business 0 Total (international business journals) 6 Academy of Management Perspectives (formerly Academy of 1 Management Executive) California Management Review 1 Harvard Business Review 2 Journal of Management Studies 2 Sloan Management Review 3 0 Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, Journal of Management, Management Science, Organisation Science, Strategic Management Journal Total (management journals) 9 Total 47

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