Patterns and Technological Implications of Global Sourcing Strategies

Abstract

This study reports sourcing strategies used by European and Japanese multinational firms and their implications on the transferability of the firms’ product and manufacturing process technology. Globalization of markets has a strong impact on firms’ sourcing and marketing strategies. The results suggest the uncoupling of innovation location from actual production location. It is strongly motivated both by the growing competitive threat in the global marketplace and by the expectation of increased payoffs to rapid introduction of advanced product and manufacturing process innovations.