Global Sourcing Strategy

This unique book explores the complex issue of how successful multinational firms manage interfaces of R&D, manufacturing, and marketing on a global basis, emphasizing the linkages among them in the value chain. The author calls this interface issue global sourcing. The major objective of the book is to investigate the market performance of various global sourcing strategies employed by multinational firms. In particular, successful Japanese cases are scrutinized to better understand the nature of global competition being shaped by Japanese firms. Based on his extensive theoretical and empirical research, the author provides practical and normative guidelines for managing new product design and development, manufacturing, and marketing around the world. These include proactive product standardization, emphasis on both product and manufacturing process innovations, integrated procurement of major components, and marketing on a global basis.

The book is divided into two parts. Part I investigates European and Japanese multinational firms’ sourcing strategies and related management issues that facilitate development of their sourcing strategies. Part II examines whether practical and normative implications gleaned from the experiences of European and Japanese firms equally apply to successful U.S. multinational firms. Although the European and Japanese data and the U.S. data are not directly comparable, similar findings warrant generalilzability of the performance implications of various sourcing strategies. Finally, based on research findings, the author offers long-term implications for emerging issues, including the role of product design as a competitive weapon and emerging strategic alliances for new product development on a global basis.

MASAAKI KOTABE is a Professor at Temple University, Institution of Global Management Studies. He has published widely on the interfaces of R&D, manufacturing, and marketing in major academic journals including the Journal of Marketing, the Journal of International Business Studies, the Colubmia Journal of World Business, and the International Marketing Review.