Types of Sourcing in China: a Classification

Abstract

The enterprises we have analysed show that sourcing activities in China may depend considerably on some structural characteristics: the presence of governmental limitations in vendor selections, the presence and the kind of possible (inter)mediation forms (third parties), the content of the customer–supplier interactions, the establishment of equity agreements between western and eastern parties. Therefore some distinguishable types arise, tied to a series of conditions relating to context: purchasing code features, company’s size, industry. These conditions will be considered in greater depth in the next chapter, where a normative model will be proposed which suggests the proper type of sourcing according to the conditions. This chapter, however, introduces the basic types, classified in such a way that recalls to some extent those presented in the first chapter:

• imposed international sourcing;

• intermediated international sourcing;

• direct international sourcing.