How do Indian firms source from China? Implications on cross-border supply chain management

Abstract

While firms face a global economy today, most studies remain entrenched in investigating specific countries. This leaves aside questions on actual cross-border processes. In response, this study asks: How small and medium enterprises manage their cross-border supply chains. While there has been recent research, this research focussed on large firms and the US border. In contrast, our focus is on smaller firms and the supply chain between India and China. A qualitative cross-sectional study based on 15 firms was used. Results suggest that information technology and third-party agents are widely applied for executing the logistic and bureaucratic process involved. Meanwhile, only few companies use a single supplier in order to develop trust and reliability adopting the majority of companies a multiple supplier strategy to control costs and keep power. This is an important finding in the light of the emphasis given to the development of long-term relationships in the literature.