Development of an interactive framework of electronic business and global sourcing

Abstract

Global sourcing operates under the challenges and pressures of intensive worldwide competition. Global sourcing can benefit from the functionality of Electronic Business (EB) by exhibiting more flexible structures and added opportunities in communications and transactions with partners among worldwide supply chains/networks. This study aims to answer two research questions, "What are the relationships between global sourcing and EB?" and "How do EB applications and strategies help global sourcing lead to better performance?" Our literature review addresses the relationships between global sourcing and EB from three perspectives: the applied theories, the covered business scope, and the changing roles of flows. In analysing the potential benefits of EB to global sourcing, the enhancement on SC components and alignment effects are discussed. Finally, a framework is proposed to highlight how EB and global sourcing interact with each other, resulting in five major issues: the enhancement of SC components, the changing micro-environment, the effect of accelerating evolution of global sourcing, the integration of activities, and the significant improvement on outcomes.