Frame of Reference on Low-Cost Country Sourcing: A Literature Review
As the degree of value added is continuously decreasing, the importance of purchasing and supply management will increase accordingly in the future (Jahns, 2005). Furthermore, as many supplies have relatively high strategic importance, the ability to enhance and transfer value from suppliers is highly dependent on the supply management capabilities of the buying firm. In contrast to the environment within the firm boundaries, the external environment is characterized by a great deal of uncertainty and complexity regarding communication, coordination, and conflicting strategic objectives.
KeywordsForeign Direct Investment Comparative Advantage Home Market Supply Management Asset Specificity
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