Implications of Low-Cost Country Sourcing: An Explanatory Study
Low-cost country sourcing has become one of the hottest buzz words during the last decade, at least among practitioners. The reasons are many: Improved telecommunications, removal of trade barriers etc., globalization has lead to a situation where multinational companies can benefit from location advantages of other nations than the home country. In addition, firms competing in mature markets have experienced increasing difficulties to grow revenues, especially in the aftermath of the economic recession caused by the dot-com crash and the September 11 event in 2001. Besides focusing on cost reduction as a means for increasing shareholder value, low-cost country sourcing has in many instances become a strategic imperative in order to stay in business on a long term.
KeywordsCompetitive Advantage Confirmatory Factor Analysis Transition Economy Sustainable Competitive Advantage Strategic Group
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