Abstract
In the past few decades, the strong competition and globalisation manifest in world markets have led companies to develop international purchasing strategies involving dramatic price reductions, quality and delivery enhancements, improved cycle times, increased responsiveness to customers, and better financial conditions. In order to effectively support their globalisation process, companies have been forced to pursue internationalisation strategies for their purchase management.. The literature focusing on the influence of multinational companies’ (MNC) corporate purchasing strategy on affiliates’ global supply strategy (GSS) development reveals a strong link between two key dimensions: supply source (i.e., the level of supply globalisation as related to the MNC’s worldwide operating needs) and purchasing location (i.e., the level of centralisation in relevant purchasing decisions.) This article, based on the study of a sample of seven Italian MNCs that have expanded their operations to the MERCOSUR (Southern Common Market) area, explores the purchasing strategy definition and development process, focusing on the relationship between its two key dimensions and identifying the definitional criteria used in each of them, as well as their impact on decision-making processes.
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