Global Sourcing

The research register for this journal is available at http://www.mcbup.com/research_registers

The current issue and full text archive of this journal is available at http://www.emerald-library.com/ft

International Marketing Review 18,5 542
Received June 1999 Revised February 2000 Accepted June 2000

Benefits and challenges of global sourcing: perceptions of US apparel retail firms
School of Business, University of Wisconsin-Madison, USA, and Manchester Business School, The University of Manchester, Manchester, UK
Keywords International sourcing, Retailing, Clothing industry Abstract Investigates various benefits and challenges that retail firms perceive in global sourcing, and how those benefits and challenges differ in terms of firms ' demographic and managerial characteristics. Data were collected from 148 apparel retail firms. Three benefits factors (competitive advantage, quality assurance and service enhancement) and four challenge factors (logistics, regulations, cultural difference and country uncertainty) were identified. The types and levels of benefit factors a firm achieved from global sourcing were significantly different in terms of the product type and import volume. The challenge factors associated with global sourcing were also different in terms of the product type, percentage of imports, experience, and regions of sourcing. Information provided by this study expands our understanding of sourcing activities by apparel retailers which have significant presence in the global sourcing landscape in the USA.

Jinsook Cho

Jikyeong Kang

International Marketing Review, Vol. 18 No. 5, 2001, pp. 542-561. # MCB University Press, 0265-1335

Introduction In the last several decades, firms in the USA have faced increased competition from all around the world. The competitive pressure from markets and consumers has forced many firms to improve the quality of their products and to lower the cost of bringing them into the market. Success in

References: Armstrong, J. S. and Overton, T.S. (1977), ``Estimating nonresponse bias in mail surveys ' ', Journal of Marketing Research, Vol. 14 No. 3, pp. 396-402. Aversa, J. (2000), ``US trade deficit hits another record in November ' ', Columbian, 20 January, p. C3. Barbee, G. (1998), ``Product costing to win profit margin ' ', Bobbin, Vol. 39 No. 12, pp. 26-8. Biederman, D. (1999), ``Entry process under review ' ', Traffic World, Vol. 260 No. 9, p. 24. Benefits and challenges of global sourcing 559 International Marketing Review 18,5 560 Bilkey, W.J. (1978), ``An attempted integration of the literature on the export behavior of firms ' ', Journal of International Business Studies, Vol. 9 No. 1, p. 33. Birou, L.M. and Fawcett, S.E. (1992), ``International purchasing: benefits, requirements, and challenges ' ', International Journal of Purchasing and Materials Management, Vol. 28 No. 3, pp. 28-37. Boyce, C. (1999), ``Going up ' ', Traffic World, Vol. 260 No. 9, p. 5. Bradley, P., Gooley, T. and Cooke, J.A. (1999), ``Retailers want import management, not ERP systems ' ', Logistics Management and Distribution Report, Vol. 38 No. 8, p. 31. Bradley, P., Thomas, J., Gooley, T. and Cooke, J. (1998), ``New restrictions target import packaging from China ' ', Logistics Management and Distribution Report, Vol. 37 No. 12, p. 23. Bradley, P., Thomas, J., Gooley, T. and Cooke, J. (1999), ``Retailers want import management, not ERP systems ' ', Logistics Management and Distribution Report, Vol. 38 No. 8, p. 31. Carter, J.R. and Narasimhan, R. (1990), ``Purchasing in the international marketplace: implications for operation ' ', Journal of Purchasing and Materials Management, Vol. 1 No. 2, pp. 2-11. Cottrill, K. (1999), ``High-visibility warehouse ' ', Traffic World, Vol. 258 No. 11, pp. 39-40. Czinkota, M.R. and Ronkainen, I.A. (1993), International Marketing, 3rd edition, The Dryden Press, Orlando, FL. Davis, H.L., Eppen, G.D. and Mattsson, L. (1974), ``Critical factors in worldwide purchasing ' ', Harvard Business Review, Vol. 52 No. 1, pp. 81-90. DeRoulet, D. (1991), ``Define a logistics strategy ' ', Transportation & Distribution, Vol. 32 No. 6, pp. 38-9. Dion, P.A., Banting, P.M., Picard, S. and Blenkhorn, D. (1992), ``JIT implementation: a growth opportunity for purchasing ' ', International Journal of Purchasing and Material Management, Vol. 23 No. 3, pp. 32-8. (The) Dun and Bradstreet Corporation (1993), Dun and Bradstreet Million Dollar Directory: America 's Leading Public and Private Companies, Par Sippany, NJ. Frear, C., Metcalf, L. and Alguire, M. (1992), ``Offshore sourcing: its nature and scope ' ', International Journal of Purchasing and Materials Management, Vol. 28 No. 3, pp. 2-11. Gaines, S. and Writer, T.S. (1999), ``Trade 's ups and downs selling deficits with China, Japan and NADTA partners drive the 1998 gap to a record, but low-cost imports help to keep inflation lower than expected ' ', Chicago Tribune, 20 February, p. 1. Garten, J. (1998), ``Cultural imperialism is no joke ' ', Business Week, 20 November, p. 26 Gilibert, B. (1998), ``Under $10 and terrific ' ', The Washington Post, 8 April, p. E09. Gill, D. (1999a), ``Quotas: they 're back... ' ', Home Textiles Today, Vol. 20 No. 44, pp. 1, 42. Gill, D. (1999b), ``Customs hikes China quota limits ' ', Home Textiles Today, Vol. 20 No. 45, p. 4. Gill, D. (1999c), ``Retailers, vendors at odds over trade bill ' ', Home Textiles Today, Vol. 20 No. 49, pp. 1-2. Gooley, T.B. (1998), ``Can customs handle the import boom? ' ', Logistics Management and Distribution Report, Vol. 37 No. 11, pp. 97-102. Hartnett, M. (1998), ``Home Depot strengthens global sourcing system ' ', Stores, Vol. 80 No. 3, pp. 55-6. Hickey, K. (1999), ``Trucking dot com ' ', Traffic World, Vol. 259 No. 2, pp. 39-40. Jeannet, J. and Hennessey, H.D. (1995), Global Marketing Strategies, 3rd ed., Houghton Mifflin, Boston, MA. Kendall, N. (1999), ``Pardon me ± was I speaking French? ' ', 4 August, Christian Science Monitor, p. 22. Koloszyc, G. (1999), ``Supplier/buyer extranet simplifies global sourcing process ' ', Store, Vol. 81 No. 1, pp. 28-30. Lanier, R. (1999), ``American ports need help to keep running ' ', Discount Merchandiser, Vol. 39 No. 4, p. 11. Mankiw, G. (1999), ``US trade policy is just plain schizo ' ', Fortune, Vol. 139 No. 7, pp. 42-4. Min, H. and Galle, W. (1991), ``International purchasing strategies of multinational US firms ' ', International Journal of Purchasing and Materials Management, Vol. 27 No. 3, pp. 9-18. Minahan, T. (1996), ``Labor deal promises bargains at east coast ports ' ', Purchasing, Vol. 121 No. 7, pp. 65-6. Monczka, R.M. and Trent, R. (1991), ``Global sourcing: a development approach ' ', International Journal of Purchasing and Materials Management, Vol. 27 No. 2, pp. 2-8. Monczka, R.M. and Trent, R. (1992), ``Worldwide sourcing: assessment and execution ' ', International Journal of Purchasing and Materials Management, Vol. 27 No. 4, pp. 12-19. Monczka, R.M. and Giunipero, L.C. (1984), ``International purchasing characteristics and implementation ' ', Journal of Purchasing and Materials Management, Vol. 20 No. 3, pp. 2-9. Purchasing (1987), ``The why, how and what of overseas purchasing ' ', Vol. 102, 25 June, pp. 54-5. Purchasing (1996), ``Outsourcing: key to survival in the 21st century? ' ', Vol. 146 No. 8, p. 89. Radosevich, L. (1999), ``Going global overnight ' ', InfoWorld, Vol. 21 No. 16, pp. 1, 34. Reda, S. (1999), ``Borderless selection: global sourcing on the Internet ' ', Store, Vol. 81 No. 6, pp. 20-4. Schneider, S. (1999), ``Culture plays key role in purchasing, shipping ' ', Petroleum Engineer International, Vol. 71 No. 10, p. L8+. Shippen, B. Jr (1999), ``Labor market effects of import competition: theory and evidence from the textile and apparel industries ' ', Atlantic Economic Journal, Vol. 27 No. 2, pp. 193-200. Smith, W. (1993), ``Country-of-origin bias: a regional labeling solution ' ', International Marketing Review, Vol. 10 No. 6, pp. 4-12. Sowinski, L. (1999), ``Legal issues for shippers ' ', World Trade, Vol. 12 No. 12, pp. 56-8. Stundza, T. (1998), ``Buyers seek higher quality at lower cost ' ', Purchasing, Vol. 19 No. 8, pp. 23-8. US Bureau of the Census (1994), Statistical Abstract of the United States, 114th edition, US Department of Commerce, Washington, DC. US Bureau of the Census (1995), Statistical Abstract of the United States, 115th edition, US Department of Commerce, Washington, DC. US Bureau of the Census (1996), Statistical Abstract of the United States, 116th edition, US Department of Commerce, Washington, DC. US Bureau of the Census (1997), Statistical Abstract of the United States, 117th edition, US Department of Commerce, Washington, DC. US Bureau of the Census (1999), Statistical Abstract of the United States, 119th edition, US Department of Commerce, Washington, DC. Wayne, L. (1998), ``With prices low, companies and labor unite in a campaign to limit imports ' ', New York Times, 10 December, p. 1. Benefits and challenges of global sourcing 561