Abstract
The “economic miracles” of the East and Southeast Asian countries have shifted the pendulum of international trade from cross-Atlantic to cross-Pacific in the last decade. Although the recent stock market turmoil and the subsequent depreciation of the foreign exchange rates of many Asian countries may set back their economic progress temporarily, the fundamental economic forces are likely to remain intact. Companies from the United States and Japan, in particular, have also been helping shape the nature of the cross-Pacific bilateral and multilateral trade and investment.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Baumol, W. J., Nelson, R. R., Wolff, E. N. (1994), Convergence of Productivity: Cross-National Studies and Historical Evidence, New York: Oxford University Press, 1994.
Bermingham, J. A. (1996), Executive Insights: Roles of R and D and Manufacturing in Global Marketing Management, in: Journal of International Marketing, 4 ( 4 ), 1996, pp. 75 - 84.
Birou, L. M., Fawcerr, S. E. (1993), International Purchasing: Benefits, Requirements and Challenges, in:International Journal of Purchasing and Materials Management, 29, Spring 1993, pp. 28-37.
Business Week (1992), Guess Who Isn’t Buying American: For Many U.S. Companies, Imported Goods are Cheaper and Better-Made, November 2, 1992, pp. 26 - 27.
Business Week (1997), Can Detroit Make Cars That Baby Boomers Like?, December 1, 1997, pp. 134 - 148.
Clark, K. B., Wheelwright, S. C., ED. (1995), The Product Development Challenge: Competing through Speed, Quality and Creativity, Boston, MA: Harvard Business School Press, 1995.
Cohen, S. S., Zysman, J. (1987), Why Manufacturing Matters: The Myth of the Post-Industrial Economy, in: California Management Review, 29, Spring 1987, pp. 9 - 26.
Czinkota, M. R., Kotabe, M. (1990), Product Development the Japanese Way, in: Journal of Business Strategy, 11, November/December 1990, pp. 31 - 36.
Dutta, S. (1993), Fuzzy Logic Applications: Technological and Strategic Issues, in: Ieee Transactions on Engineering Management, 40, August 1993, pp. 237 - 254.
HO, R. (1997) Small Product-Development Firms Show Solid Growth, in: Wall Street Journal, April 22, 1997, p. 32.
Kotabe, M. (1992), Global Sourcing Strategy: R and D, Manufacturing and Marketing Interfaces, New York: Quorum Books 1992.
Kotabe, M., Swan, K. S. (1994), Offshore Sourcing: Reaction, Maturation and Consolidation of U.S. Multinationals, in: Journal of International Business Studies, 25, First Quarter 1994, pp. 115 - 40.
Kotler, P., Fahey, L., Jatusripitak, S. (1985), The New Competition, Englewood Cliffs, NJ: Prentice-Hall, 1985.
Kumpe, T., Bolwijn, R. T. (1988), Manufacturing: The New Case for Vertical Integration, in: Harvard Business Review, 66, March-April 1988, pp. 75 - 81.
Levin, R. C., Klevorick, A. K., Nelson, R. R., Winter, S. G. (1987), Appropriating the Returns from Industrial Research and Development, in: Brookings Papers on Economic Activity, Issue 3, 1987, pp. 783831.
Levy, D. L. (1997), Lean Production in an International Supply Chain, in: Sloan Management Review, 38, Winter 1997, pp. 94 - 102.
Lloyd, B. (1994), Ibm: Decline or Resurrection? in: Management Decision, 32 (8), 1994, pp. 5-10. Markides, C., Berg, N. (1988), Manufacturing Offshore is Bad Business, in: Harvard Business Review, 66, September-October 1988, pp. 113 - 120.
Morgan, J.C., Morgan, J.J. (1991), Cracking the Japanese Market: Strategies for Success in the New Global Economy, New York: The Free Press, 1991.
Murray, J.Y. (1996), A Currency Exchange Rate-Driven versus Strategy-Driven Analysis of Global Sourcing, in: Multinational Business Review, 4, Spring 1996, pp. 40 - 51.
Murray, J. Y., Kotabe, M., Wildt, A. R. (1995), Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis, in: Journal of International Business Studies, 26, First Quarter 1995, pp. 307 - 324.
Organization For Economic Cooperation And Development (1993), Intra-Firm Trade, Paris: Oecd 1993.
Schlender, B. R. (1991) Apple's Japanese Ally, in: Fortune, November 4, 1991, pp. 151 - 152.
Starr, M. K., Ullman, J. E. (1988), The Myth of Industrial Supremacy, in: Martin K. Starr, ed., Global Competitiveness, New York: W. W. Norton and Co., 1988.
United Nations (1996), World Investment Report 1996: Investment, Trade and International Policy Arrangements, New York 1996.
Technically speaking, suppliers in a Japanese vertical keiretsu are not necessarily owned in any significant way by a principal company. In most cases, a principal company own no more than 10 percent of the stock of its suppliers and those suppliers also hold some of the principal company’s shares. Such a mutual partial ownership is designed to enhance mutual trust and long-term commitment to each other. A transfer of executives, engineers and some R and D funding from the principal company to its keiretsu member suppliers in exchange for the suppliers' commitment to the principal company is so common that a keiretsu can be considered a highly integrated corporate system (thus, intra-firm sourcing) rather than a buyer-supplier relationship on a spot or contractual basis.
Rodney Ho, “Small Product-Development Firms Show Solid Growth,” Wall Street Journal, April 22, 1997, p. 32: This article shows that entrepreneurial companies have begun to fill a void of new product development role as large companies trim their internal R and D staff and expenditures in the United States. Although it makes a financial sense, at least, in the short term, those outsourcing companies will face the same long-term concern.
In the 1960s and 1970s, many U.S. firms had their own manufacturing subsidiaries in Southeast Asian countries. However, when U.S. parent companies increased procurement of components from abroad for production in the United States in the mid-1970s, many of those subsidiaries were either not used strategically for integrated global manufacturing purposes or sold away to local interests. Selling of U.S. assets in Southeast Asia was partly due to the local government's “fade-out” policy, mostly in the 1960s, to gradually increase local participation in U.S.-owned businesses and also partly due to U.S. firms’ desire to reduce fixed cost in order to lower break-even point.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2002 Springer Fachmedien Wiesbaden
About this chapter
Cite this chapter
Kotabe, M. (2002). Global Sourcing Strategy and Sustainability of Core Competencies. In: Hahn, D., Kaufmann, L. (eds) Handbuch Industrielles Beschaffungsmanagement. Gabler Verlag, Wiesbaden. https://doi.org/10.1007/978-3-663-01582-6_13
Download citation
DOI: https://doi.org/10.1007/978-3-663-01582-6_13
Publisher Name: Gabler Verlag, Wiesbaden
Print ISBN: 978-3-663-01583-3
Online ISBN: 978-3-663-01582-6
eBook Packages: Springer Book Archive